Indonesia Launches ‘Golden Visa’ to Attract Foreign Investors

On Thursday, Indonesia’s President Joko Widodo announced that the country has introduced a “Golden Visa” program to attract foreign investors and professionals with valuable skills. 

The “Golden Visa” is designed to facilitate foreign investments and contributions in Indonesia and attract high-quality travelers who will be productive and invest in the country during their stay. President Widodo emphasized that this initiative will help boost the economy by attracting investments and skilled professionals.

The scheme offers long-term visas, with a five-year visa requiring an investment of $2.5 million and a ten-year visa needing a $5 million investment, providing access to Southeast Asia’s largest economy.

These funds can be allocated to Indonesian government bonds, public company stocks, or deposits in state-owned banks. Additionally, travelers can secure a five-year visa by depositing $130,000 and purchasing an apartment valued at $1 million. Individuals not interested in establishing a company can still qualify for the “Golden Visa” by making a financial investment. 

The “Golden Visa” program, which began testing last August, has already issued nearly 300 permits and attracted $123 million in investments. Indonesia’s immigration chief, Silmy Karim, stated that the country aims to issue 1,000 golden visas by the end of the year. This program is expected to bring in high-quality visitors and enable foreign nationals to make contributions to the Indonesian economy.

Many countries offer comparable investment visa programs, although some, such as Canada, Britain, and Singapore, have discontinued them, believing they fail to generate jobs and could be exploited for speculative investments. Nonetheless, Indonesia views the “Golden Visa” as a strategy to draw high-quality investors and decrease the number of digital nomads who contribute minimally to the local economy while living in tourist destinations like Bali on visitor visas.

The “Golden Visa” also opens opportunities for foreign companies already operating in Indonesia. For instance, a mining company looking to expand downstream could earn golden visas for its foreign workers. OpenAI CEO Samuel Altman received the first golden visa issued by Indonesia, a 10-year “global talent” permit, demonstrating the program’s appeal. 

At the launch ceremony, the immigration authority also granted Shin Yong, the South Korean coach of Indonesia’s national soccer team, a global talent permit.

In Southeast Asia, countries like Cambodia, Thailand, Malaysia, and Singapore offer similar visas designed to attract investments and stimulate local economies. Indonesia aims to attract $101.5 billion in domestic and foreign direct investment in 2024 to achieve its GDP growth target of 5.2%. 

The “Golden Visa” program is a key part of this strategy. The Indonesian administration is considering additional measures, such as special status for foreign citizens of Indonesian origin, which is expected to be finalized in October.

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