General Overview of Golden Visa for Investment Purpose under the New Ministerial Regulation
Overview: The Ministry of Law and Human Rights (“MoLHR”) issued MoLHR Regulation No. 22 of 2023 on Visas and Stay Permits as amended by MoLHR Regulation No. 11 of 2024 (“MoLHR Reg. 22/2023”), the issuance of this regulation was to update the previous sets of regulations issued on 2018 and 2021, thus adjust the requirements for foreign investors using certain reasons for the application of Visas and Stay Permits.
MoLHR Reg. 22/2023 is particularly noteworthy in introducing the concept of a “Golden Visa” for foreigners, particularly foreign investors, who wish to enjoy prolonged periods of stay in Indonesia (up to 5 or 10 years). In a conference on 29 May 2023, President Joko Widodo and the Minister of Tourism and Creative Economy Sandiago Uno pushed the implementation of the new regulation, based on the reason that a Golden Visa policy would help to attract more foreign talents to assist Indonesia in building the country’s economy, and create more jobs.
To fully understand the benefits attached to the Golden Visa, we have prepared this article to provide a general overview of the various avenues to attain a Golden Visa for foreign investors and their respective requirements.
What is a Golden Visa?
A Golden Visa is defined as a grouping of (i) Limited Stay Visa, (ii) Limited Stay Permit, (iii) Permanent Stay Permit, and/or (iv) Re-Entry Permit that has a maximum period of 5 (five) or 10 (ten) years. Foreigners can qualify for a Golden Visa if they can prove that they will be carrying out one or more of the following activities:
1. Investment;
2. Family Unification;
3. Repatriation; and
4. Establishing a Second Home.
(Article 184 and 185 of MoLHR Reg. 22/2023).
The benefits attached to a Golden Visa include priority during services required by the holder in the form of:
1. Priority inspection lanes at certain immigration checkpoints;
2. Priority services at the Immigration Office; or
3. Priority services from qualified related agencies, ministries and/or institutions.
(Article 190 of MoLHR Reg. 22/2023)
While each type of activity requires specific documents, all of them require a uniform set of documents that a foreign applicant must present and submit to the Directorate General of Immigration (“DGoI”) alongside their application. The set of documents includes:
1. A valid Nationality Passport that is still valid for, at least, 6 (six) months;
2. Proof in the form of an Immigration Guarantee or Guarantor;
3. Proof of having sufficient living expenses for themselves and/or their family while living in Indonesian;
4. A recently taken color photograph of the applicant; and
5. Other documents to explain the purpose of the arrival of the applicant.
The Immigration Guarantee under Point 2 and Other Documents under Point 5 will be elaborated for each section going forward.
Golden Visa for Investor
A foreigner who engages in investment activities can qualify as a Golden Visa holder if he or she intends to act as:
1. individual investor who intends to or does not intend to establish an Indonesian company;
2. member of the board of directors (“BoD”) or board of commissioners (“BoC”) of a company to be established in Indonesia, which is a subsidiary of an overseas company; and/or
3. representative of a foreign company who is on a visit or assignment to a branch or subsidiary of said company in Indonesia.
However, there are limited number of persons who can enjoy these benefits of each companies. Foreigners who will serve as members of the BoD or BoC are limited to a maximum of 10 (ten) persons holding the Golden Visa per company. Meanwhile, only 1 (one) foreigner that is on visitation/assignment is permitted to hold a Golden Visa per company.
(Article 186 of MoLHR Reg. 22/2023)
Specifically for the Immigration Guarantee, the amount of USD to be invested by the foreigner depends on the maximum period of his/her stay of either 5 (five) or 10 (ten) years. Please bear in mind that all of these guarantees must be fulfilled within 90 (ninety) days after the applicant is successful in registering for the Golden Visa or receiving the Limited Stay Permit.
For your ease of reference, the following table outlines the required documents for Golden Visa applications:
| Golden Visa For Investor | |||||
| No | Type of Activity | Commitment | Investment Value (5 years) | Investment Value (10 years) | Other Documents |
| 1 | Establishing a Company | Establish a Company with a minimum Issued Capital | US$2,500,000 (fulfilled by the company) | US$5,000,000 (fulfilled by the company) |
1. Proof of a certain amount of share ownership in an overseas company; and 2. A financial audit report of the parent company from a public accounting firm. |
| Not establishing a Company | Purchase Indonesian government bonds | US$350,000 | US$700,000 | N/A | |
| Purchase shares in a public company in Indonesia | US$350,000 | US$700,000 | |||
| Purchase mutual funds from public companies in Indonesia | US$350,000 | US$700,000 | |||
| Purchase a flat or apartment | Not Applicable | US$1,000,000 | |||
|
Serve in BoD or BoC OR On Visit/Assignment |
Establish a Branch or Subsidiary in Indonesia with a minimum Issued Capital | US$ 25,000,000 (fulfilled by the company) | US$ 50,000,000 (fulfilled by the company) | A financial audit report of the parent company from a public accounting firm that is up to international standards | |
(Articles 39 and 40 of MoLHR Reg. 22/2023)
Annual Evaluation:
After fulfilling the above criteria and obtaining the Golden Visa, the holders will be evaluated, possibly annually, to ensure they have fulfilled their Statement of Commitment and Immigration Guarantees as required for their Stay Permits. These evaluations are conducted by DGoI.
The following details of the company records are evaluated and considered:
a. Proof of validity of the company;
b. Evidence of the latest bank account;
c. Changes to the company deed;
d. Latest land and building tax records;
e. Latest financial statements;
f. Latest corporate tax records;
g. Latest proof of income;
h. Latest bond letter;
i. Latest share ownership records; or
j. Other evidence corroborating the intention or purpose of the relevant person’s stay in the Indonesian territory.
(Article 198 of MoLHR Reg. 11/2023).
Concluding Remarks
The introduction of the Golden Visa in Indonesia under MoLHR Regulation No. 22 of 2023 marks a significant step towards attracting foreign investment to bolster the country's economy. With the clear-cut purpose of the Golden Visa that creates attractive benefits for foreign investors who qualify for it, the various avenues by which a Golden Visa can be acquired are sure to raise interest for Investors or prospective Permanent Residency seekers in ensuring a prolonged stay in Indonesia.
The article above was prepared by Audria Putri (Senior Associate) and M. Irfan Yusuf (Associate).
