The government is set to enhance the screening process over visa requirements for foreign investors. Director General of Immigration at the Law and Human Rights Ministry Silmy Karim announced on Thursday (25/5) that the ministry will be introducing stricter requirements for residence permits applicable to foreign nationals.
“We plan to amend the residence permit visa, which currently has a validity of up to ten years. The visa will be exclusively targeted at high-quality investors with a specific investment value and an excellent track record,” Silmy said.
Asset verification and guarantees for foreigners
In the revised regulations for investor and second home visas, the Directorate General of Immigration will include a provision for asset verification and guarantees pertaining to foreign individuals.
The verification procedures will be conducted by state-owned banks to ensure compliance with the applicable regulations regarding foreign investors’ funds.
Moreover, there is a potential for an increase in the minimum funds stipulated in the proof of funds documentation, thereby restricting eligibility for this visa category to high-profile individuals who can contribute significant economic benefits to Indonesia.
The proposal for the regulations revision will be promptly submitted to President Joko Widodo. “Once we receive the President’s decision and guidance, we will proceed with the revision of Government Regulation No 31/2013”, the Director General said.
The regulation serves as technical guidance under Law No. 6/2011 concerning Immigration, encompassing the criteria for issuing visas and residence permits.
Stricter requirements for addressing violations and arrests
The government has decided to apply stricter requirements for investor visa issuance following multiple violations, including the recent arrest of 17 foreigners in Cengkareng, West Jakarta on May 19 by the Soekarno-Hatta Airport Immigration officers.
Among those detained were four Nigerians and one Ghanaian who possessed passports and residence permits identifying them as investors. However, further investigation revealed that the companies they claimed to be affiliated with were fictitious.
Another case involved a Russian citizen detained by the immigration officers in Bali for misusing an investor visa. He had purportedly owned a real estate company, but it was discovered that he worked as a freelance photographer offering services on Instagram.
The surge in these incidents has occurred following the easing of investment regulations for foreigners amidst the waning Covid-19 pandemic.
The Directorate General of Immigration reports that, from January to March, a total of 620 foreign nationals were repatriated due to violations of immigration rules, including the misuse of investor visas and residence permits, overstaying, and engaging in public disturbances.
Notably, investor visa misuses were particularly rampant in tourist destinations like Bali and West Nusa Tenggara.
Financial requirements for investor visa
Obtaining an investor visa is, in fact, is a challenging process. To illustrate, individuals desiring a two-year stay permit as an investor must pursue the visa application through a corporation with a foreign capital investment guarantor. Immigration authorities then verify the active status of the company.
Moreover, foreign investors pursuing the visa are mandated to possess a minimum share value of IDR 10 billion and provide evidence of a bank account with a minimum balance of US$2,000 to substantiate their ability to cover living expenses.
Furthermore, additional requirements such as a recommendation letter from either the Investment Ministry or the Investment Office may be necessary.
The requirements for the second home visa, enabling foreigners to reside in Indonesia for up to 10 years, are even more complex.
This program, launched on October 25, 2022, necessitates the submission of evidence demonstrating funds of at least IDR 2 billion or its equivalent.
Furthermore, applicants are required to pay a non-tax state revenue (PNBPP) fee amounting to IDR 3 million and furnish proof of property ownership in Indonesia. The occurrence of investor visa fraud may be attributed to insufficient verification of these stipulations or involvement in illicit activities such as bribery.
