Indonesia launches golden visa to lure foreign investors

Indonesia will be issuing golden visas in a bid to attract individual and corporate investors and boost its national economy.

Director general of immigration, Silmy Karim, said that the golden visa will grant a residence permit for an extended period of five to 10 years to a foreign investor. The five-year visa requires individual investors to set up a company worth US$2.5 million, while for the 10-year visa, a company worth US$5 million is required.

Don't miss: Indonesia to launch 'golden visa' to attract global investors

Karim further explained that the golden visa was an order from President Joko Widodo when he carried out his duties as director general of immigration, which is why he prioritised the program to be finalised within six months. The initial announcement for a golden visa came in June this year, after a cabinet meeting with President Joko Widodo and tourism and creative economy minister Sandiaga Uno.

Following the meeting, Sandiaga told reporters present that the golden visa could significantly impact Indonesia's efforts to attract more foreign talent as well as investments which could then create more job opportunities locally.

He added at the time that he hoped that this would make Indonesia the "epicentre" of economic growth and that it will encourage sustainable development particularly as it is the "largest archipelagic country" with the ability to absorb large carbon emissions.

Karim said that other countries that have implemented the golden visa policy are getting a 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 favourite destination for foreign investors. Hopefully, with this policy, Indonesia will also receive a similar effect. Moreover, our country has a myriad of potentials to be fully managed and developed," he added.

The announcement of the golden visa policy is the second to come in recent months after the Indonesian government launched a second home visa programme last October that allowed well-off elderly foreigners to apply to stay for up to 10 years if they were looking to retire in popular tourist destinations in the country, had an existing visa and were able to provide proof of funds of a minimum of US$181,600 or proof that they own a luxury property in Indonesia itself. 

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