In our Spotlight on APAC series we round up the latest developments from across the Asia Pacific region. In this post we focus on the changes to Indonesia’s regulatory framework for immigration with the goal of attracting increased investment and high skilled individuals to the region.
The changes have been introduced by Indonesia’s Minister of Law and Human Rights (MOLHR) and impact the regulatory framework for visas and stay permits under MOLHR Regulation 22/2023:
Visitor Visa and Visitor Stay Permit
The first change is that the regulation streamlines visitor visa requirements for single and multiple entry visit visas and for visit visas on arrival in Indonesia. The Regulation also implements the introduction of two types of fees for visit visas, the visa fee itself and a verification fee. Whilst the verification fee will apply to multiple entry visit visas, for a visit visa on arrival it appears that only the visa fee itself will apply.
Extension of stay periods for Visit Visa holders
Under MOLHR Reg 22/2038 visit stay permits can be extended for a maximum period of 60 days per extension as per the expiration date of the visit stay permit. However, the overall stay permit must not exceed 180 days. The length of the visit visa itself will depend on the activities intended to be undertaken:
Pre-Investment Activities: 180 days per extension as of the expiration date of the visit stay permit provided that the overall stay permit in Indonesian territory is not more than 12 months.
Government Duties: 60 days per extension as of the expiration date of the visit stay permit provided that the overall stay permit in Indonesian territory is not more than 12 months. MOLHR Reg. 22/2023 also provides extension periods applicable only for Single Entry Visit Visa holders, as follows:
Apprenticeship: 180 days per extension as of the expiration date of the visit stay permit provided that the overall stay permit in Indonesian territory is not more than 12 months; and
Prospective Foreign Worker Undergoing Probationary Period: 60 days per extension as of the expiration date of the visit stay permit provided that the overall stay permit in Indonesian territory is not more than 12 months.
It should be noted that where a foreign national is eligible to visit Indonesia visa free any extension to that visit will be 30 days as of the expiration date of the visit stay permit provided that the overall stay permit is not more than 60 days in total.
Limited Stay Visa (Visa Tinggal Terbatas or “VITAS”) and Limited Stay Permit (Izin Tinggal Terbatas or “ITAS”)
Golden Visa
Indonesia introduced the Golden Visa, which refers to a specific group of Limited Stay Visas, Limited Stay Permits, Permanent Stay Permits and Re-entry Permits (“Golden Visa”). A Golden Visa is issued to conduct capital investment, family regroupings, repatriations, and to second homeowners in Indonesia. Golden Visas are granted for a maximum of 5 or 10 years, depending on the level of investment.
One notable feature of the regulation is that upon their arrival Golden Visa holders will be given priority by immigration and they no longer need to apply for an ITAS at the Immigration Office.
MOLHR Reg. 22/2023 introduces the following investment commitments for Golden Visas, which require foreign nationals to make the following immigration guarantees:
a) Foreigners intending to stay for up to 5 years while seeking to invest by establishing a company in Indonesia must have a minimum investment value of USD 2.5 million in the relevant company.
b) Foreigners intending to stay for up to 10 years while seeking to invest by establishing a company in Indonesia must a minimum investment value of USD 5 million in the relevant company.
c) Foreigners who do not intend to establish a company in Indonesia but wish to stay for up to 5 years must commit to one of the following guarantees:
- to purchase at least USD 350,000 of Indonesian government bonds;
- to purchase at least USD 350,000 worth of Indonesian publicly listed company shares; or
- to purchase at least USD 350,000 in mutual funds holding shares listed on the Indonesia Stock Exchange.
d) Foreigners who do not intend to establish a company in Indonesia but wish to stay for up to 10 years must commit to one of the following guarantees:
- to purchase at least USD 700,000 of Indonesian government bonds;
- to purchase at least USD 700,000 shares of a publicly listed company in Indonesia;
- to purchase at least USD 1 million of mutual funds from a publicly listed company in Indonesia; or
- to buy a flat or apartment with a minimum value of USD 1 million.
Such investors are exempted from the obligation to have a mandatory Guarantor as they are subject to these criteria which act as an immigration guarantee.
New Activities now permitted under VITAS and ITAS
The Government has introduced a new scope of activities eligible for a VITAS and ITAS. These consist of (i) foreigners who are joining work on board a ship, floating equipment, or installation operating in Indonesian waters, territorial seas, continental shelf or the Indonesian Exclusive Economic Zone; (ii) for the purpose of work holiday; and (iii) reasons of expediency for the welfare of the community.
In addition the maximum stay period under an ITAS may now be determined by the Immigration authorities up to a period of 10 years based on the foreign national’s intended activities and the basis of the ITAS application. This change from a period between 90 days and five years previously is quite significant.
The entry process for foreign nationals has also eased in that foreigners who enter with a VITAS and receive an entry stamp will not have to submit a further application to the immigration office, as the entry stamp is now deemed to act as the ITAS.
ITAS Card
MOLHR Reg. 22/2023 provides that an ITAS card is provided in the form of a virtual ITAS card and a physically printed ITAS card that is printed by the immigration office. Previously, virtual forms of documents related to visas and stay permits were not provided in the regulations.
ITAS Extension
An extension application for a Limited Stay Permit shall be submitted within these periods:
- for a Limited Stay Permit with a maximum period of 1 year, the extension application shall be submitted no earlier than 30 days before and no later than the day the Limited Stay Permit expires; and
- for a Limited Stay Permit with a period of more than 1 year, the extension application shall be submitted no earlier than 3 months before and no later than the day the Limited Stay Permit expires.
Other Changes
Other changes to provisions concerning visas and stay permits introduced by MOLHR Reg. 22/2023 include the following:
The introduction of two additional reasons for both visa application rejection and visa cancellation, (i) if the sponsor who submits the visa application fails to fulfil their obligations as the sponsor, and (ii) other reasons in accordance with the provisions of laws and regulations. The latter gives the authorities greater discretion to reject a visa application, as such reason may be derived from other laws and regulations besides those governing criminal acts such as terrorism, prostitution, and human trafficking.
New Provisions regarding Stay Permit Cancellation and Expiration
MOLHR Reg. 22/2023 no longer acknowledges “the termination of marital relationship of a Foreigner who is legally married to an Indonesian citizen due to divorce and/or by court decision except for marriages that are 10 (ten) years old or more” as a reason for a stay permit cancellation. Under the previous regulation, this reason applied for Permanent Stay Visa and Limited Stay Visa cancellation.
MOLHR Reg. 22/2023 also adds additional conditions that determine that a stay permit is no longer valid, as follows:
- the foreigner’s passport or travel document has expired and the data on the stay permit has not been updated;
- the foreigner is registered as a child with dual citizenship in Indonesian territory; and/or
- the foreigner obtains Immigration facilities.
Exit Permit introduction
In the case of the termination of an ITAS or ITAP that is still in effect the regulation introduces an “exit permit only,” which is a permit for foreigners to leave Indonesian territory and not return or for foreigners outside of Indonesian territory who are not intending to return.
This permit terminates a valid ITAS and ITAP and the relevant foreigner must leave Indonesian territory within seven days of the exit permit only issuance.
New Virtual Permits
The regulation also introduces new virtual permits consisting of a (i) virtual Visitor Stay Permit; (ii) virtual ITAS; (iii) virtual ITAP; (iv) virtual exit permit only; (v) virtual Re-Entry Permit; and (vi) virtual certificate of birth report.
Conclusion
The above changes form part of the Indonesian Government’s focus on attracting foreign investment and revamping the immigration regulatory framework to ease the path for foreign nationals. This focus appears to be follow a trend across the APAC jurisdictions as the regions continue to emerge from the Covid-19 pandemic. We continue to see a number of countries across Asia streamlining immigration processes and introducing new categories of visa to attract foreign nationals with ease.
If you would like more information on Indonesia or assistance with your global immigration requirements please contact [email protected] or [email protected]
