Golden Visa for Capital Investment

On August 22, 2023, the Minister of Law and Human Rights (“MoLHR”) issued Regulation No. 22 of 2023 on Visas and Stay Permits ("MoLHR Reg 22/2023"). MoLHR Reg 22/2023 is issued following the enactment of Government Regulation No. 31 of 2013 (as amended), which is itself an implementing regulation of Law No. 6 of 2011 on Immigration.

MoLHR Reg 22/2023 serves as the legal foundation for various purposes, including the implementation of the Golden Visa for foreign investors, aiming to promote foreign investments and contribute to the development of the national economy.

The Golden Visa, defined under MoLHR Reg 22/2023, comprises a limited stay visa, a limited stay permit, a permanent stay permit, and a re-entry permit. It is valid for up to 5 (five) or 10 (ten) years and is granted to foreigners for purposes such as capital investment, family unification, repatriation, and a foreigner who has a second home in Indonesia.

In the following discussion, we will explore the main characteristics of the Golden Visa for the purpose of capital investment.

Capital Investment Golden Visa

Golden Visa for capital investment activities may be granted to:

1. foreign individuals intending to establish a company in Indonesia;
2. foreign individuals who do not intend to establish a company in Indonesia; and
3. foreign individuals who are prospective members of Boards of Directors (“BoD”) or Boards of Commissioners (“BoC”) for a company to be established in Indonesia as a branch office or subsidiary of a foreign company.

Please note that MoLHR Reg 22/2023 specifies that the number of prospective members for both BoD and BoC is limited to a maximum of 10 individuals per company.

Below, we provide a summary of the main characteristics of capital investment golden visa.

The foreign individuals mentioned in the table above must submit their immigration documents, including a passport, proof of an "immigration guarantee" (in the form of a commitment to either purchase the relevant assets or fund the required investment level described above), and proof of living expenses coverage, to the relevant immigration office when applying for a limited stay visa. Additionally, Individual investors and corporate investors intending to establish a company in Indonesia are also obligated to provide additional documents. These include proof of share ownership in a company outside Indonesia and the turnover/sales value of the related offshore company. These details should be documented in the audited financial report of the principal company. The financial audit report must be conducted by an international-standard public accounting firm.

Incentives and Facilities

MoLHR Reg 22/2023 specifies that Golden Visa holders will receive, at a minimum, the following incentives:

1. access to priority checking lanes at official immigration checkpoints, as stipulated by the MoLHR;
2. priority services at immigration offices; or
3. priority services from pertinent government agencies and/or ministries, as per cooperation agreements.

Renewal Possibilities for the Golden VisaBottom of Form

For five-year limited stay periods under the golden visa, extensions can be requested, provided that the cumulative extension does not surpass 10 years. However, MoLHR Reg 22/2023 outlines a mechanism for certain golden visa holders to be eligible to apply for a "permanent stay permit." This permit is essentially a five-year limited stay permit that can be extended indefinitely. However, holders must fulfill the obligation of reporting to the immigration office every five years and submit a range of documents for examination and approval, primarily to ensure regulatory compliance.

Conclusion

MoLHR Reg 22/2023 introduces the Golden Visa, aimed at promoting foreign investment in Indonesia. The regulation outlines criteria for investors, specifying required investments, minimum living expenses, and additional documentation. Golden Visa holders enjoy incentives such as priority services and expedited immigration processes. MoLHR Reg 22/2023 allows for visa extensions up to 10 years and introduces a mechanism for a "permanent stay permit" for certain holders. Overall, it provides a structured framework to attract foreign investment while ensuring regulatory compliance.