KUALA LUMPUR - The Golden Visa scheme was officially announced by the Ex- President of Indonesia, Joko Widodo, on 25 July 2024, marking the nation's push to open the doors to long-term foreign investors.  

This scheme grants foreigners residence permits valid for five or ten years, aiming to support the country’s economy and raise its competitiveness in Southeast Asia.

Why did Indonesia launch it?

The program was launched to boost foreign direct investment (FDI), inject capital, and bring in new skills and technology while strengthening confidence among global investors. The government views this as a strategy to stay competitive against other regional economies. 

Across Southeast Asia, similar visa schemes have been established. Singapore offers the Global Investor Programme, while Malaysia runs the Malaysia My Second Home (MM2H) scheme aimed at wealthy foreigners.

Thailand also provides a Long-Term Resident Visa, which grants up to 10 years of stay for investors and skilled professionals.

Compared with these, Indonesia’s Golden Visa sets higher financial requirements but is positioned as a tool to attract major investments and create jobs.

Who is eligible?

Besides investors, skilled professionals, and corporations, individuals who start a new company in Indonesia must invest a minimum of USD 2.5 million (about Rp 38.75 billion) for a five-year visa or USD 5 million (about Rp 77.5 billion) for a ten-year visa. 

Individuals not opening a company can instead invest USD 350,000 (about Rp 5.43 billion) or USD 700,000 (about Rp 10.85 billion) both for a five to ten years visa in the form of bonds, stocks, or deposits.

Corporate applicants are required to invest USD 25 million (about Rp 387.5 billion) for a five-year visa or USD 50 million (about Rp 775 billion) for a ten-year visa for their directors.

What is the impact on jobs and skills?

The Golden Visa is expected to generate new jobs through foreign companies hiring locally,leading to a transfer of knowledge and technology when foreign experts work with Indonesian talent. Over time, this could improve the overall quality of the workforce.

On a wider scale, the program could boost investor confidence and generate additional government revenue.

As a result, Indonesia has attracted Rp 48 trillion (approximately USD 2.86 billion) in investments through its Golden Visa scheme, says Acting Immigration Director General, Yuldi Yusman.

As of September this year, authorities have issued 1,012 Golden Visas, reflecting growing confidence among global investors in Indonesia’s economy.

Can the Golden Visa Deliver Its Promises of Jobs and Investments? 

However, critics caution that the benefits may disproportionately favor wealthy foreigners, risk inflation in real estate, or become a vehicle for money laundering.

The government insists strong vetting and regulation will be enforced to mitigate such risks.

The Golden Visa is framed as a long term economic strategy, but its success will ultimately depend on execution, equity of benefits, and consistent regulation.