In today’s ever-changing global landscape, multinational corporations, entrepreneurs and high-net-worth individuals (HNWI) are exploring relocating abroad and more international investment opportunities.
In line with other government programs to attract investment inflow, Indonesia has recently started to adopt what many countries have already done to attract foreign investment and stimulate economic growth.
Many of its neighbors in Southeast Asia have already implemented similar programs (e.g., Singapore, Malaysia, the Philippines, and Thailand) to attract foreign corporations, HNWIs, and talented individuals.
Besides the longer stay duration, Golden Visa holders are also entitled to some privileges such as service priority in line at the immigration office, service priority from other related government bodies, simpler procedures when leaving or entering Indonesia, and other similar privileges. However, please be aware that the immigration officer will conduct an Immigration Guarantee Evaluation on a yearly basis for all Golden Visa holders to make sure that they still meet the criteria above.
It is unclear at this moment the extent to which the Ministry of Finance will support this program. It’s possible they could offer tax benefits by providing exemptions to a Golden Visa holder’s foreign income over a certain amount of years or even lower personal income tax rates. This remains to be seen.
KPMG in Indonesia will endeavor to keep readers of GMS Flash Alert apprised of related developments when they occur.