July 26, 2024
JAKARTA – Indonesia’s long-term visa scheme, called the golden visa, is only meant for “good quality travelers”, said President Joko “Jokowi” Widodo during the policy’s launch on Thursday, as he warned against allowing newcomers who bring no benefits or who might pose a threat to national security.
The government officially launched on Thursday the golden visa program, which aims to attract foreign investors, global talent and the diaspora to put their money into the country or contribute their expertise in exchange for longer permits to stay in the country for between five and 10 years.
“[Since] currently there are not many countries that show such strong economic growth, political stability, abundant natural resources and demographic bonus, Indonesia should be a promising investment destination and [a place where] global talent can contribute,” Jokowi said during the launching of the program.
The long-term visa, he added, would create a multiplier effect for Indonesia, the largest economy in Southeast Asia, boosting the capital gain, work opportunities and transfers of technology.
“But keep in mind, [these visas] are only for good quality travelers, so [authorities] must carefully select and evaluate the contribution [of each applicant],” Jokowi said. “Let’s make sure [that we] don’t grant visas to those that might harm national security or who don’t offer any benefits to the national [economy].”
Under the scheme, individual investors are required to set up a company worth US$2.5 million in investment for the five-year golden visa, and a $5 million investment for the 10-year visa.
Meanwhile, corporate investors are required to invest $25 million to get five-year visas for directors and commissioners. They need to invest $50 million to gain a 10-year visa.
In a bid to lure more foreign investors to the ongoing megaproject to build Indonesia’s future capital city Nusantara in East Kalimantan, the government set a lower value of $5 million for investment in Nusantara to get a five-year visa and $10 million for a 10-year visa, Immigration Director General Silmy Karim said.
Read also: Indonesia offers ‘golden visa’ to entice foreign investors
Different provisions apply to individual foreign investors who do not want to set up a company in Indonesia. To get five-year and 10-year visas, they must instead place $350,000 and $700,000, respectively, through buying government bonds, stocks of publicly listed companies or as deposits.
Aside from targeting high-net-worth investors, Silmy said the government would also grant the golden visa to global talent recommended by various ministries. The applicants are not required to invest money but must offer their expertise to the country.
Among those already granted the golden visas are OpenAI CEO Sam Altman, national soccer team coach Shin Tae Yong and an undisclosed Nobel laureate in economic sciences.
Read also: OpenAI chief granted first ‘golden visa’
The Immigration Directorate General has granted golden visas to almost 300 applicants since it began testing out the policy last year, attracting Rp 2 trillion ($122 million) in investment, and is now aiming to attract a total of 1,000 foreigners by the end of this year, according to Silmy.
Silmy said the government was mainly targeting investors from 10 countries with the largest investment in Indonesia, such as Singapore, China, the United States and Japan.
“Currently, there are lots of investment opportunities in downstream industries like nickel, metals and plantations for foreigners,” he said.
Several countries offer similar investment visa schemes, but others, including Canada, the United Kingdom and Singapore, have scrapped such schemes as their governments concluded they do not create jobs and could be a means to park speculative money, Reuters reported.
Responding to Jokowi’s concerns over foreigners who might harm national security, Silmy said his office would conduct a rigorous vetting process for all golden visa applicants, including by communicating with Interpol and the Financial Transaction Reports and Analysis Center (PPATK) in anticipation.