According to the OECD's definition, Residency by Investment and Citizenship by Investment schemes, often referred to as 'Golden Visa' and 'Golden Passport', are policies implemented by a country to grant residency or citizenship to foreign nationals through investment or by paying certain fees. In 2022, it is estimated that more than 60 countries have implemented such investment-based residency and citizenship policies.

Regulation of the Minister of Law and Human Rights No. 22 of 2023 on Visas and Stay Permits and Regulation of the Minister of Finance No. 82 of 2023, promulgated on 30 August 2023, became the basis of the Golden Visa policy. The new visa types are intended to attract eligible foreigners, including corporate and individual investors, to invest in Indonesia and boost the country's economic development. This regulation categorizes the Golden Visa as a grouping of Limited Stay Visas, Limited Stay Permits, Permanent Residence Permits, and Reentry Permits for specific periods. The Golden Visas are granted for the following purposes: Investment; Family reunification; Repatriation; or Second home.

The Golden Visas are valid for a maximum of 5 or 10 years and are available to:

1. Foreign individuals as individual investors intending to establish a company in Indonesia. To be eligible to stay in Indonesia for 5 years, individual investors wishing to establish a company in Indonesia must invest US$2,500,000. Meanwhile, for a stay permit of 10 years, the required investment amount is US$5,000,000.
2. Foreign individuals as individual investors not intending to establish a company in Indonesia.
   For a 5-year Golden Visa stay permit, applicants are required to place funds worth US$350,000, which can be used to buy Indonesian government bonds, public company shares or place savings/deposits in Indonesia, while for the 10 years Golden Visa stay permit the funds that must be placed are US$700,000.
3. Foreign individuals who will serve as directors or commissioners of a company to be established in Indonesia, which is a branch or subsidiary of a foreign company outside the territory of Indonesia.
   Directors and commissioners of Corporate investors establishing a company in Indonesia with an investment of US$25,000,000 will obtain a golden visa with a stay of 5 years. For an investment value of US$50,000,000, the government will grant them a 10-year stay permit.

Benefits of Golden Visa
Having a Golden Visa in Indonesia offers several advantages for Foreign Nationals (FNs). Here are some key benefits of holding a Golden Visa in Indonesia:

1. Access to Indonesia: A Golden Visa provides easy access to Indonesia, allowing FNs to reside and work in the country more freely.
2. Legal Security: Possessing a Golden Visa gives FNs a clear legal status in Indonesia, affording them protection under the country's laws and regulations.
3. Property Ownership: Certain types of Golden Visas enable FNs to purchase property in Indonesia, including houses or apartments, which can be a lucrative investment.
4. Travel Convenience: The Golden Visa can streamline cross-border travel for its holders, reducing administrative barriers related to visas and residence permits.
5. Path to Citizenship: For those who meet specific criteria, some Golden Visa programs may serve as a pathway to Indonesian citizenship.

And other advantages that facilitate investment in Indonesia.

If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of many corporate law firms in Indonesia that has handled a lot of similar matters, with many experienced and professional corporate and civil lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.

Author: Dewi Susanti