nt of Government Regulation No. 40 of 2023 as the fourth amendment of Government Regulation No. 31 of 2013 on Implementing Regulation of Law No. 6 of 2011 on Immigration.
Regulation 22 is the legal basis for, among others, the implementation of Golden Visas for foreign investors in order to help promote foreign investments and to develop the national economy.
Following the issuance of Regulation 22, several regulations with regard to the Golden Visas are issued, including, (i) Director General of Immigration Decree ("DGID") No. IMI-0257.GR.01.01 of 2023 on Number of Shares Ownership and Turnover/Sales Value of Foreign Companies for Individual Foreign Investors ("DGID 257"), (ii) DGID No. IMI-0260.GR.01.01 of 2023 on Product Documents and Document Requirements of Stay Permit Services ("DGID 260"), and (iii) DGID No. IMI-0262.GR.01.01 of 2023 on Amount of Living Expenses While Staying Within the Territory of Indonesia as the Requirement for Visitor Visas and Limited Stay Permit Applications ("DGID 262").
We set out below several key points with regard to the Golden Visas and several adjustments on immigration requirements under Regulation 22.
♦ Implementation of Golden Visa Policy
A Golden Visa is a grouping of a Temporary Stay Visa, a Temporary Stay Permit, a Permanent Stay Permit, and a Re-Entry Permit for a certain period of time (collectively, the "Golden Visa"). A Golden Visa is given for a foreigner for the purpose of foreign investment, family unification, repatriation, and a foreigner who has second home in Indonesia. The Golden Visa is valid for up to 5 (five) years or up to 10 (ten) years.
In this Newsflash, we discuss the Golden Visa for foreign investments.
♦ Golden Visas for Foreign Investments
A foreign investment activity is an activity that qualifies for a Golden Visa. In this regard, a Golden Visa for a foreign investment activity may be given for:
- individual investors who intend to establish companies in Indonesia;
- individual investors with no intention of establishing companies in Indonesia; and
- individuals who are the prospective members of boards of directors (each, a "BOD") or boards of commissioners (each, a "BOC") of companies that will be established in Indonesia as branch offices or subsidiaries of foreign companies.
Please note that prospective members of a BOD and BOC are limited to a maximum of 10 individuals per company.
Holders of Golden Visas will at least be granted the following types of incentives:
- use of priority checking lanes in official immigration check points, as provided by the MOLHR;
- priority services at immigration offices; or
- priority services from relevant government agencies and/or ministries, in accordance with cooperation agreements.
♦ Immigration Guarantees for Golden Visas for Foreign Investments
As previously regulated, foreigners who reside in Indonesia and want to obtain a Limited Stay Visa are required to have a sponsor/guarantor who guarantees the foreigners during their stay in Indonesia.[3] In this regard, Regulation 22 exempts such requirement in the following events:
- foreigner is married to an Indonesian citizen;
- foreign business actors who invest their capital as an investment in Indonesia, subject to applicable laws and regulations on investment; and
- citizens of a country that reciprocally provides a guarantee waiver.
Under Regulation 22, the requirement to have a sponsor/guarantor is now replaced with the requirement to submit an Immigration Guarantee. An Immigration Guarantee is an instrument for the immigration official to assess the feasibility of the presence of the foreigner in Indonesia and the benefits of his/her stay in Indonesia.
Individual Investors
For an individual investor who wishes to establish a new company in Indonesia, the Immigration Guarantee shall be in the form of as follows:
- for an individual investor with the duration of stay of 5 (five) years, a statement of commitment that the individual investor will establish a company in Indonesia with an investment amount of at least US$2,500,000 (two million five hundred thousand US Dollars) within 90 (ninety) days since the issuance of the Limited Stay Visa; and
- for an individual investor with the duration of stay of 10 (ten) years, a statement of commitment that the individual investor will establish a company in Indonesia with an investment amount of at least US$5,000,000 (five million US Dollars) within 90 (ninety) days since the issuance of the Limited Stay Visa.
For an individual investor who has no intention to establish a new company in Indonesia, the Immigration Guarantee shall be in the form of as follows:
- for the duration of stay of 5 (five) years:
- a statement of commitment to purchase Indonesian government bonds for an amount of at least US$350,000 (three hundred fifty thousand US Dollars);
- a statement of commitment to purchase shares of a publicly listed company in Indonesia for an amount of at least US$350,000 (three hundred fifty thousand US Dollars); or
- a statement of commitment to purchase mutual funds from a publicly listed company in Indonesia for an amount of at least US$350,000 (three hundred fifty thousand US Dollars),
within 90 (ninety) days since the issuance of the Limited Stay Visa.
- For the duration of stay of 10 (ten) years:
- A statement of commitment to purchase Indonesian government bonds for an amount of at least US$700,000 (seven hundred thousand US Dollars);
- A statement of commitment to purchase shares of a publicly listed company in Indonesia for an amount of at least US$700,000 (seven hundred thousand US Dollars);
- A statement of commitment to purchase mutual funds from a publicly listed company in Indonesia for an amount of at least US$700,000 (seven hundred thousand US Dollars); or
- A statement of commitment to purchase multi-story housings or apartments with a minimum value of US$1,000,000 (one million US Dollars),
within 90 (ninety) days since the issuance of the Limited Stay Visa.
Members of BOD and BOC
Regulation 22 regulates the Immigration Guarantees applicable for the prospective members of a BOD or BOC of companies that will be established in Indonesia as branch offices or subsidiaries of the headquarters of foreign companies, which shall be in the form of as follows:
- for a prospective member of a BOD or BOC with the duration of stay of 5 (five) years, a statement of commitment from the company to establish a branch or subsidiary in Indonesia with an investment value of at least US$25,000,000 (twenty-five million US Dollars) within 90 (ninety) days since the issuance of the Limited Stay Visa; and
- for a prospective member of a BOD or BOC with the duration of stay of 10 (ten) years, a statement of commitment from the company to establish a branch or subsidiary in Indonesia in the form of issued capital (shares) or investment value of at least US$50,000,000 (fifty million US Dollars) within 90 (ninety) days since the issuance of the Limited Stay Visa.
Please note that the templates of these statements of commitment, as well as other documents required for the application of Limited Stay Visas and Limited Stay Permits, are provided in the appendix of DGID 260.
♦ Amount of Living Expenses
An application of Limited Stay Visa and Limited Stay Permit requires the applicant (i.e., individual foreigners) to submit a proof of having enough living expenses for him/her and/or his/her family during the stay in Indonesia. Particularly for the foreign individuals who wish to come and reside in Indonesia for the purpose of doing investment in Indonesia as mentioned previously, the amount of living expenses in this regard is regulated under DGID 262.
Under DGID 262, the amount of living expenses required for the application of Limited Stay Visa of foreign individuals with a duration of stay of 5 (five) years or 10 (ten) years shall be a minimum of US$5000 (five thousand US Dollars).
♦ Amount of Turnover/Sales Value
Pursuant to Regulation 22, an application of the Limited Stay Visa and Limited Stay Permit requires the applicant to submit other documents to explain the intention/purpose of the arrival of such foreign individuals to Indonesia.
For the foreign individuals who wish to come and reside in Indonesia for the purpose of doing investment with the intention of establishing new companies in Indonesia for the duration of stay of 5 (five) years and 10 (ten) years shall include:
- proof of shares ownership in a company outside Indonesia in a certain amount; and
- proof of certain turnover/sales value in a company outside Indonesia,
included in the financial report of the parent company from an international-standard public accounting firm.
This requirement does not apply to foreign investors with no intention of establishing new companies in Indonesia.
As for the application for a Limited Stay Visa and a Limited Stay Permit of a prospective member of a BOD or BOC of companies that will be established in Indonesia as branch offices or subsidiaries of the headquarters of foreign companies with the duration of stay of 5 (five) years and 10 (ten) years, such other documents shall be in the form of proof of certain turnover/sales value in a company abroad included in the financial audit report of the parent company from an international-standard public accounting firm.
Under DGID 257, the amount of shares ownership and turnover/sales value shall be as follows:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
