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DIRECTOR General of Immigration, Ministry of Law and Human Rights (Kemenkumham), Silmy Karim revealed that the Golden Visa policy has come into effect on 30 August 2023. This policy is regulated based on Minister of Law and Human Rights Regulation (Permenkumham) Number 22 of 2023 concerning Visas and Stay Permits, as well as Ministerial Regulations Finance (Permenkeu) Number 82 of 2023.
This visa classification is intended for qualified foreigners who will be beneficial for the country’s economic development, one of which is investors, both corporate and individual.
“The Golden Visa is a visa that is given as a basis for granting a residence permit for a period of five to 10 years in order to support the national economy,” said Silmy Karim in a press release, Sunday (9/03), 2023.
To be able to stay in Indonesia for five years, foreigners who are individual investors and want to set up a company in Indonesia are required to invest US$2,500,000 or around IDR38 billion. Meanwhile, for a 10-year stay, the required investment value is US$5,000,000 or around IDR76 billion.
Likewise, corporate investors who form a company in Indonesia and invest US$25,000,000 or around IDR380 billion will receive a Golden Visa with a five-year stay for their directors and commissioners. Then, for an investment value of US$50,000,000, a length of stay of 10 years will be given. Different provisions apply to investors who are foreign individuals but do not intend to establish a company in Indonesia.
For the five-year Golden Visa, applicants are required to place funds worth US$350,000 or around IDR5.3 billion which can be used to buy Indonesian government bonds and public company shares or place savings or deposits. Meanwhile, for the 10-year Golden Visa, the funds that must be placed are US$700,000 or around IDR10.6 billion.
“Because we are targeting quality travelers, the conditions are weightier. The longer you stay in Indonesia, the higher the guarantee value, especially for investment activities which can reach around IDR760 billion,” Director General of Immigration remarked.
Silmy Karim explained, the golden visa was a mandate from President Joko Widodo when he was carrying out his duties. The Head of State requested that this policy be used as a priority program to be completed within six months.
According to Silmy Karin, the six months were then used to review and formulate the Golden visa policy, including changes to regulations and preparing derivative regulations.
“From changes to Government Regulations, Ministerial Regulations, to Director General Regulations. The preparation of the Golden Visa policy involves many ministries,” he explained.
Previously, Indonesian immigration regulations did not regulate visas with stay permits for a period of 10 years. With this policy, Golden Visa holders are expected to be able to enjoy a number of exclusive benefits from this type of visa.
These include a longer stay period, ease of leaving and entering Indonesia, and efficiency because there is no longer a need to apply for a Limited Stay Permit (ITAS) at the immigration office.
Indonesia is not the first country to implement the Golden Visa. Similar policies have previously been implemented in various developed countries, including the United States, Canada, United Arab Emirates, Ireland, Germany, New Zealand, Italy and Spain.
“Countries that have implemented the Golden Visa policy are feeling the positive impact. Denmark, for example, has succeeded in becoming one of the countries at the forefront of innovation. Then the United Arab Emirates became a favorite destination for foreign investors,” said Silmy Karin.
“The hope is that with this policy in the future Indonesia will also receive a similar impact. Moreover, our country has a lot of potential to be managed and developed,” he concluded. [kompas.com/photo special]
