Indonesia's Golden Visa: A New Opportunity for Long-Term Investment

Indonesia has launched a long-term visa program called the "Golden Visa" to attract foreign investors to Southeast Asia's largest economy. The initiative offers investors the opportunity to obtain visas for up to 10 years, with the aim of encouraging significant financial investment in the country.

The Golden Visa scheme offers two main options for investors: a five-year visa and a ten-year visa. To qualify for a five-year visa, individual investors need to set up a company worth at least $2.5 million. For a ten-year visa, the required investment increases to $5 million. Alternatively, investors who do not want to start a company can obtain a five-year visa with a $350,000 investment or a ten-year visa with a $700,000 investment. These funds can be allocated to Indonesian government bonds, public company shares or deposited in Indonesian banks.

Corporate investors have different requirements. Companies must invest $25 million to secure five-year visas for their directors and commissioners. For a ten-year visa, the investment requirement rises to $50 million. However, if the investment is made in Indonesia's new $32 billion capital city, currently under construction in Borneo, the requirements are reduced to $5 million for a five-year visa and $10 million for a ten-year visa.

While other countries offer similar investment visa programs, some countries such as Canada, Britain and Singapore have recently discontinued them, citing concerns that these visas do not significantly create jobs and may be used for speculative investments.

President Joko Widodo, commonly known as Jokowi, highlighted the program's goal of attracting high-quality travelers.

Silmi Karim, head of Indonesia's immigration agency, told Reuters that about 300 applicants have received the Golden Visa since the trial phase began last year, attracting $123 million in investments. Karim also reported that Indonesian authorities are considering granting special status to foreign nationals of Indonesian origin. The status, similar to India's Overseas Citizenship of India (OCI) program, will allow individuals of Indonesian origin to live, work and travel in Indonesia indefinitely. The special status could be introduced as early as October.

The plan responds to growing demands in Indonesia to allow dual citizenship, enhance global mobility and maintain links with the motherland for its expatriates.