The Indonesian government is planning to implement a new visa program known as the 'golden visa,' which aims to attract investors and individuals with special expertise to the country. This initiative, announced by Investment Minister Bahlil Lahadalia, will offer longer stay periods compared to other types of visas. In this guest post, we will delve into the details of the golden visa scheme, its requirements, benefits, and the government's objectives.

Understanding the Golden Visa Concept

The concept of a golden visa revolves around providing residence permits to individuals who make investments, purchase property, or make significant donations in a particular country. The aim is to attract foreign investment and stimulate economic growth. While the golden visa program shares similarities with the golden passport program, which grants citizenship through investment, the focus of the golden visa is on providing a residence permit rather than full citizenship.

Requirements for the Golden Visa

Applicants interested in obtaining the golden visa must meet specific requirements set by the Indonesian government. These include being over 18 years old, possessing a clean criminal record, and having sufficient funds to make the necessary investments. The government aims to ensure that the scheme is accessible to a wide range of applicants, including investors, individuals with special expertise, and retirees with high incomes.

Benefits of the Golden Visa

The golden visa scheme offers several benefits to its holders, granting them the status of residents in Indonesia. This status enables them to enjoy various privileges, particularly as residents of countries within the European Union. One of the notable advantages is the freedom to move between countries within the European Union, facilitating travel and business opportunities. Moreover, the golden visa program provides investment opportunities and encourages economic contributions to the host country.

EU Concerns and the Future of Golden Visas

In 2022, the European Commission called on EU member states to discontinue offering citizenship to investors, including through golden visa programs. This call was prompted by concerns following the conflict in Ukraine, as there were worries that the scheme could pose security risks to EU countries. The European Commission's stance not only addressed the issue of granting permanent residency but also aimed to address the multi-billion euro golden visa industry.

Ensuring the Proper Use of the Golden Visa Scheme

While the golden visa scheme presents significant investment opportunities and economic benefits, it is crucial to introduce policies that prevent its abuse or misuse for illicit purposes such as money laundering or tax evasion. The Indonesian government must implement robust measures and regulations to ensure the scheme's integrity and transparency. By establishing effective monitoring mechanisms and strict due diligence procedures, the government can safeguard against potential risks and maintain the program's credibility.

Conclusion

The introduction of the golden visa scheme in Indonesia reflects the government's efforts to attract investment and leverage the expertise of individuals from various backgrounds. By offering longer stay periods and facilitating residency for investors, retirees, and individuals with special expertise, Indonesia aims to enhance economic growth and foster international collaborations. 

However, it is imperative for the government to strike a balance between promoting the scheme's benefits and implementing adequate safeguards to prevent misuse. Through thoughtful regulation and oversight, the golden visa program has the potential to contribute positively to Indonesia's development while ensuring the integrity of its immigration system.