INTRODUCTION AND IMPLEMENTATION OF “GOLDEN VISA” IN INDONESIA

Update 21:15 - October 08, 2023

I. Background

1. On 4 August 2023, Government of the Republic of Indonesia enacted Government Regulation Number 40 of 2023 concerning Fourth Amendment to Government Regulation Number 31 of 2013 concerning Implementing Regulation of Law Number 6 of 2011 on Immigration (“GR 40/2023”). The enactment of GR 40/2023 was followed by the enactment of its implementing regulations, among others, (i) the Regulation of the Minister of Law and Human Rights of the Republic of Indonesia Regulation Number 22 of 2023 concerning Visa and Stay Permit (“MOLHR Regulation 22/2023”) and (ii) the Regulation of the Minister of Finance of the Republic of Indonesia Number 82 of 2023 concerning Types and Rates of Non-Tax State Revenue for Urgent Need of Golden Visa Services Applicable to the Ministry of Law and Human Rights (“MOF Regulation 82/2023”).

2. Pursuant to the elucidation of GR 40/2023, the Regulation aims to support economic growth after COVID-19 pandemic as well as create an investment climate that can attract high-skilled talents. It practically changes the policy for granting visa and stay permit, among others by introducing a new scheme called “Golden Visa”. Pursuant to Article 184 of MOLHR Regulation 22/2023, golden visa is a grouping of limited stay visa, limited stay permit, permanent stay permit, and re-entry permit for a certain period of time.

3. Although GR 40/2023 and MOLHR Regulation 22/2023 regulate several aspects of the new provisions concerning immigration in Indonesia, this legal update will focus on the implementation of the “Golden Visa”, including the types of visas, requirements to obtain Golden Visa, and the benefit of the Golden Visa.

II. Key Provisions

Definition

4.Pursuant to Article 184 in conjunction with Article 185 of MOLHR Regulation 22/2023, Golden Visa is a grouping of limited stay visa, limited stay permit, permanent stay permit, and re-entry permit. Such visa and stay permit are granted for the following activities:

    • investment;
    • family reunification;
    • repatriation; and
    • second home. (e. foreigners and/or their family who intend to live in Indonesia for 5 or 10 years subject to certain requirements).

We will elaborate the details of each activity for Golden Visa in points 7 – 11 below.

Stay Permit Period for Golden Visa

5.Stay permits for Golden Visa holders can be granted for a period of:

i. 5 years; or

ii. 10 years.

Types of Activities of Golden Visa

6.MOLHR Regulation 22/2023 regulates in more details the specific activity for Golden Visa as follows:

Investment

6.1 Pursuant to Article 186 of MOLHR Regulation 22/2023, with respect to investment activities, Golden Visa can be granted to:

i.Foreigner as individual investor who intends to establish a company in Indonesia;

ii. Foreigner as an individual investor who does not intend to establish a company in Indonesia; and

iii. Foreigner who will be appointed as a member of the board of directors and commissioners of the company in Indonesia that is a subsidiary of the company outside Indonesia. However, a company can only reserve a maximum of 10 foreigners for the position of board of directors and commissioners.

Family Reunification

6.2 Further, MOLHR Regulation 22/2023 also sets out the activities of family reunification that can be granted with a Golden Visa as below:

i. Foreigner who joins with his/her spouse who holds a limited stay permit or permanent stay permit;

ii. Children who are under 18 years old and unmarried who join their father and/or mother who hold a limited stay permit or permanent stay permit; and

iii. Foreigner who joins himself/herself with children who hold limited stay permit or permanent stay permit.

Repatriation

6.3 Golden Visa also applies to ex-Indonesian citizen for repatriation purpose, e., a foreigner who is ex-Indonesian citizen who wishes to live in Indonesia. The activities of repatriation pursuant to Article 188 of MOLHR Regulation 22/2023 are as follows:

i. Ex-Indonesian citizen who will reside without guarantor/sponsor; and

ii. Descendant of former Indonesian citizen of maximum second degree without guarantor/sponsor;

Second Home

6.4 Pursuant to Article 189 of MOLHR Regulation 22/2023, Golden Visa is given to foreigners with the following categories:

i. Second home. Second home is an immigration facility in the form of a limited stay visa given to foreigners and/or their family who intend to live in Indonesia for 5 or 10 years subject to certain requirements, such as having an account at an Indonesian state-owned bank with a balance of minimum USD 130 thousand;

ii. Special skills. Foreigner with special skills can apply for Golden Visa by submitting required documents such as certificate in specific area of expertise required by the State or proof of graduation from one of 100 world’s best universities for the last 3 years with GPA of at least 3.5 or equivalent.

iii. World figures. Note that MOLHR Regulation offers no criterion to determine ‘world figures.

iv. Elderly foreigners with age 60 years old or older that have an account in Indonesian state-owned bank with minimum balance of USD 50 thousand, for 5 years of Golden Visa.

Requirements to Obtain Golden Visa

7. The requirements to obtain Golden Visa depend on the type and period of the visa or stay permit. The highlight of the new requirements is that the Government implements specific amounts of investment for individual foreign investor and corporate investor.

8. Individual foreign investor who intends to establish a company in Indonesia must have an investment of at least USD 2.5 million for 5 years period of Golden Visa. Meanwhile, for 10 years of Golden Visa, the respective individual investor must pay-up or subscribe a capital of USD 5 million in a company.

9. The requirements above do not apply to foreign investor who does not intend to establish a company in Indonesia. A foreign investor can invest in Indonesia through several types of investments in the form of Government bond, shares in public company in Indonesia, mutual fund of a public company in Indonesia, or a unit of apartment. Foreign investor who does not intend to establish a company in Indonesia must purchase:

    • Indonesian Government bond for a minimum of USD 350 thousand for 5 years of Golden Visa and a minimum of USD 700 thousand for 10 years of Golden Visa; or
    • shares in public company in Indonesia for a minimum of USD 350 thousand for 5 years of Golden Visa and a minimum of USD 700 thousand for 10 years of Golden Visa; or
    • mutual fund of a public company in Indonesia for minimum of USD 350 thousand for 5 years of Golden Visa and a minimum of USD 700 thousand for 10 years of Golden Visa; or
    • a unit of an apartment with a purchase value of USD 1 million for 10 years of Golden Visa.

10. The capital requirement for the foreign investor in the form of corporation is slightly different from the foreign investor in the form of individual. For corporation, the minimum investment value is USD 25 million for 5 years Golden Visa and USD 50 million for 10 years Golden Visa. Such Golden Visa will be granted for the board of directors and/or commissioners of the Indonesian company where the foreign investor injects its investment.

11. The requirements also apply differently for Golden Visa for family reunification, repatriation, and second home. For example, Golden Visa for an ex-Indonesian citizen who will reside in Indonesia for 5 years without guarantor/sponsor must purchase at least USD 35 thousand of Indonesian bonds, or sharers in public company in Indonesia, or mutual fund of a public company in Indonesia. In addition, elderly  foreigner with age 60 years old or older who applies Golden Visa must have minimum bank account of USD 50 thousand in Indonesian state-owned bank, for 5 years period of Golden Visa.

Benefits of the Golden Visa

12. The holder of golden visa whether in the form of limited stay visa, limited stay permit, permanent stay permit, or re-entry permit receives facilities at least in the form of:

i. Priority inspection route at the immigration checkpoint;

ii. Priority services at the immigration office; or

iii. Priority services from related agencies, ministries/institutions, based on the cooperation agreement.

Non-Tax Revenue of Golden Visa

13. Along with the implementation of Golden Visa, the government of the Republic of Indonesia also stipulates the fees for Golden Visa application, which would be non-tax revenue under MOF Regulation 82/2023. The fee to apply Golden Visa pursuant to MOF Regulation 82/2023 is in the range of IDR 7 million up to IDR15 million per submission.

 

For further information, please contact us at:

Marieta Mauren
Menara Global – 7th Floor
Jln. Gatot Subroto Kav. 27 Jakarta Selatan 12950, Indonesia
Phone: +62 21 5292 0918 / 0919
E-mail: info@marietamauren.id
Website: http://marietamauren.id

 

Disclaimer:
This article is intended for general information only. It is not intended to be, nor should it be construed as, legal advice applicable to your particular situation. You should seek the advice of legal counsel of your choice before acting upon any of the information in this article.

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