Golden Visa for investors in IKN: Attracting quality investment to Indonesia

Golden Visa policy in Indonesia

The recent announcement by President Joko Widodo regarding the launch of the Golden Visa is a significant development for the coverage on global mobility solutions and investment policies in Indonesia, particularly in relation to the IKN project. This new policy is designed to attract high-quality foreign investments and investors, which are crucial for the development of IKN.

The Golden Visa grants long-term residency to foreign investors who meet specific investment criteria. Governed by the Regulation of the Minister of Law and Human Rights No. 22 of 2023 and the Regulation of the Minister of Finance No. 82 of 2023, the Golden Visa allows foreign nationals to reside in Indonesia for 5 to 10 years, depending on their investment amount.

Indonesia’s strategic Golden Visa initiative aims to expedite the development of IKN and boost the national economy through foreign investments.

Golden Visa for foreign companies investing in IKN

Foreign companies looking to invest in Indonesia's new capital now face reduced investment requirements. The minimum investment for a five-year residency has been lowered from USD 25 million to USD 5 million, while for a ten-year residency, it has been reduced from USD 50 million to USD 10 million.

Silmy Karim, Director General of Immigration, clarified that foreign companies opening branches or subsidiaries in IKN are exempt from the turnover requirements applicable to those opening branches outside IKN. The Golden Visa programme grants long-term residency of 5 to 10 years to foreign nationals, targeting those who can contribute positively to the country.

This policy not only attracts high-quality investments, it also enhances Indonesia’s appeal as a stable destination for global talent and capital. Reduced investment thresholds encourage foreign businesses, boosting economic growth and technological advancement in IKN. This initiative is expected to significantly impact global mobility, facilitating easier entry for investors and skilled professionals into Indonesia, and supporting regional development and economic diversification.

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Alfira Fazriananda is a part of the human resources department at Protemus Capital. In her role, she contributes significantly to the management and development of human resources strategies.