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 Golden Visa Scheme that was introduced in Indonesia in 2023 and how that may have eased a path for foreign companies doing business in Indonesia.
Towards the middle of 2023 the Golden Visa Scheme was promoted as a new and attractive option for foreign investors looking to relocate to Indonesia with opportunities to expand business interests throughout the region. The Scheme was issued under the Minister of Law and Human Rights (MOLHR) Regulation No. 22 of 2023 on Visas and Stay Permits (Reg 22/2023), foreign investors may be eligible for visas lasting up to five or ten years, depending on the value of their planned investment in Indonesia.
Who is eligible?
The Golden Visa is a type of visa granted for up to five or 10 years and in various forms including:
Limited Stay Visa
Permanent Stay Permit
Re-Entry Permit (issued for certain periods).
It is available to some companies and to foreign investors who:
- intend to set up a local company;
- do not intend to set up a local company but intend to invest in Indonesian government bonds or shares or mutual funds of publicly listed companies in Indonesia; or
- are directors or commissioners of a local branch or subsidiary of a foreign company (with a cap of ten people per company), subject to satisfaction of relevant investment-related requirements.
Apart from having a longer visa validity (compared to a limited stay visa which is typically valid for up to two years), Golden Visa holders will also enjoy other benefits:
- priority lane at Immigration Checkpoints designated by the MOLHR;
- priority services at the Immigration Office; and
- priority services from related government agencies and ministries based on a cooperation agreement.
Although the Golden Visa does not require a guarantor (such as the employer) to support the application it does require that certain investment and/or business establishment criteria are met. This is primarily known as an Immigration Guarantee and specific proof of investment is required. The commitment requirement will vary depending on the type of activities to be carried and duration of the Golden Visa is issued accordingly.
Companies with investment plans and high net worth individuals considering investing and residing in Indonesia may be attracted by the Golden Visa Scheme. Foreign companies may start to see an easing in the way of doing business in Indonesia but it should be noted that the Immigration authorities will carry out annual audit type evaluations to ensure that specific criteria is met and continually maintained by Golden Visa holders. Such visa holders must remain compliant at all times.