Indonesia’s Golden Visa: Investment Goals Fall Short in 2024
Indonesia’s Golden Visa Program Falls Short of Investment Goals
JAKARTA – Indonesia’s enterprising Golden Visa program, launched this year to attract foreign investment, has fallen short of its targets, according to the Directorate General of Immigration’s year-end report.
As of December, the program has generated Rp 9 trillion (US$561.7 million) in investment from 471 issued visas. this figure is significantly less than half the amount initially projected by the government.
“The investment [from the golden visa program] is Rp 9 trillion as of the end of this month,” Jaya Saputra, the immigration authority’s director for stay permits, told reporters at a year-end event in Jakarta on Tuesday.
The program, launched in July, aimed to attract 1,000 high-net-worth individuals and secure substantial investments. at the launch ceremony, then-immigration director general Silmy Karim announced that 300 visas had already been issued, generating at least Rp 2 trillion in investments.
Former President Joko ”Jokowi” Widodo, who championed the initiative, emphasized the program’s focus on attracting “high-quality travelers” and its potential to create a multiplier effect for the Indonesian economy.
“But keep in mind that [these visas] are only for high-quality travelers, so [authorities] must carefully select and evaluate the contribution [of each applicant],” Jokowi said at the July event.
Despite falling short of its investment goals, the Golden visa program contributed to a record Rp 8.5 trillion in non-tax state revenue for the immigration authority, a 12.7 percent increase from the previous year.
Visa services accounted for the largest share of this revenue, followed by passport services and othre immigration services.
The immigration authority also reported a significant increase in residency permits issued this year. Visit stay permits (ITK) exceeded 9 million, a 31-fold increase from last year.Temporary stay permits (ITAS) rose by 40 percent to 259,944, and permanent stay permits (ITAP) tripled to 6,437.
Australians topped the list for residency permits, followed by China, Malaysia, Singapore, and India.
Along with the Golden Visa program,the immigration authority highlighted several service innovations introduced this year,including e-gates at major airports in Jakarta and Bali,and automated passport application terminals.
The directorate general has also focused on upgrading its online services, offering electronic versions of various permits, including e-VOA, e-ITK, e-ITAS, and e-ITAP.
Indonesia’s “Golden Visa” Falls Short of Enterprising Targets
Experiencing a Deceptive Shine
indonesia’s “Golden Visa” program, designed to lure foreign investment and high-net-worth individuals, has fallen significantly short of its ambitious targets. Despite generating Rp 9 trillion (US$561.7 million) in investments from 471 issued visas as of December, the program remains far from achieving the initially projected figures.
This outcome stands in stark contrast to the optimistic outlook expressed at its July launch. Then-immigration director general, Silmy karim, confidently announced that 300 visas had already been issued, generating at least Rp 2 trillion in investments.
Former President Joko Widodo, a strong advocate for the initiative, had emphasized the program’s selective nature, focusing on attracting “high-quality travelers” with high potential for positive economic impact.
Silver Lining amidst Disappointment
Although falling short of its investment goals, the Golden Visa program has contributed to a record Rp 8.5 trillion in non-tax state revenue for the immigration authority, showing a 12.7% increase from the previous year.
Visa services were the primary contributor to this revenue stream, followed by passport services and other immigration services.
The year also saw a surge in residency permits issued. Visit Stay Permits (ITK) exceeded 9 million, marking an remarkable 31-fold increase from 2022. Temporary Stay Permits (ITAS) also experienced a notable 40% rise, reaching 259,944, while Permanent Stay Permits (ITAP) tripled to 6,437.
Australia topped the list for residency permits,followed by China,Malaysia,Singapore,and India.
Looking Ahead: Service Innovations and Enhancements
Alongside the Golden Visa program, the immigration authority highlighted several service innovations implemented throughout the year, including e-gates at major airports in Jakarta and Bali, as well as automated passport submission terminals.
The directorate general has also prioritized enhancing its online services, offering convenient electronic versions of various permits like e-VOA, e-ITK, e-ITAS, and e-ITAP.
This commitment to modernization and improved service delivery aims to attract more visitors and investors to Indonesia in the future.