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Indonesia’s golden visa gamble: will it hit the investment jackpot or miss the mark?

  • While it’s already attracted some wealthy investors, analysts warn the scheme also brings risks like money laundering and housing inflation

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Tech billionaire Elon Musk (left) walks with Indonesia’s Coordinating Minister of Maritime and Investment Affairs  Luhut Binsar Pandjaitan (centre) during his arrival at Bali’s Ngurah Rai International airport on May 19. Musk is one of the wealthy individuals Indonesia is hoping to lure with its golden visa scheme. Photo: AFP
Indonesia’s newly launched golden visa scheme is designed to lure wealthy investors, but analysts warned that it could also attract cross-border money laundering and inflate housing prices, posing a potential “threat to Indonesian citizens”.
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Jakarta last week officially launched its golden visa scheme, which offers residency to individuals willing to invest at least US$350,000 for a five-year stay or US$700,000 for the 10-year visa.

The programme is aimed at enticing “world‬‭ figures, ‬‭ international‬‭ investors, ‬‭ global‬‭ talents, ‬‭ and‬‭ the‬‭ Indonesian‬‭ diaspora” ‬so that they can contribute their wealth, skills, or expertise to the country, according to a statement put out by the Ministry of Law and Human Rights.

“Currently, ‬‭not‬‭ many‬‭ countries‬‭ have‬‭ good‬‭ economic‬‭ growth, ‬‭ maintained‬‭ political‬‭ stability, demographic‬‭ bonus, ‬‭ and‬‭ abundant‬‭ natural‬‭ resources. ‬‭ This‬‭ means‬‭ Indonesia‬‭ should‬‭ be‬‭ a‬ promising‬‭ investment‬‭ destination‬‭ and‬‭ a‬‭ global‬‭ talent‬‭ destination‬‭ for‬‭ work. ‬‭ This‬‭ will‬‭ significantly‬ affect‬‭ the‬‭ country, ‬‭ including‬‭ capital‬‭ gains, ‬‭ job‬‭ opportunities, ‬‭ technology‬‭ transfer, ‬‭ improvement‬‭ in‭ human‬‭ resource‬‭ quality, ‬‭ and‬‭ more,” President Joko Widodo said on Thursday during the policy’s launch in Jakarta.
Indonesia’s President Joko Widodo visiting the new Presidential Palace in the future capital city of Nusantara in East Kalimantan on July 29. Photo: AFP
Indonesia’s President Joko Widodo visiting the new Presidential Palace in the future capital city of Nusantara in East Kalimantan on July 29. Photo: AFP

Widodo also advised the country’s immigration agency to be “selective” and only allow “individuals with high potential contributions” access to the visa.

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