Second Home. Premium Foreigner Visa

The Ministry of Legislation and Human Rights of the Republic of Indonesia and the General Directorate of Immigration on October 25, 2022, published Circular Letter No. IMI-0740 "On the Provision of Second Home Visa and Limited Stay Permit." Many expatriates had been eagerly awaiting the introduction of this visa, which was supposed to finally allow them to officially reside in Indonesia and have the privileges enjoyed by permanent residents. However, the document turned out to be somewhat unexpected. Yes, everyone understands that Indonesia aims to attract foreign capital and individuals who earn income from outside the country. However, the entry threshold proposed is simply enormous. As noted by the Minister of Justice and Human Rights of Indonesia, Yasonna H. Laoly, this visa is intended for global investors and billionaires.

The preamble of the resolution states that in 2023, a slowdown in global economic growth is expected due to the projected recession and economic inflation in various countries. Therefore, the government of the country needs to take strategic steps to minimize the impact of the global economic downturn on Indonesia. It further states that at a coordination meeting on this issue, held on October 9, 2022, it was decided that a simple and fast visa and residence permit policy is needed for foreigners who have been staying in Indonesia for an extended period. Such a policy is seen as one of the incentives that may encourage some foreign guests to stay, which will have a positive impact on Indonesia's economy under the current circumstances, particularly in the real estate sector.

The letter also provided for the transition to the "second home" visa for holders of the retirement KITAS, which caused great outrage among many elderly expatriates from Europe, Australia, and other countries who have lived here for many years as recipients of passive income. Many of them are expressing on social media that they will consider changing their country of permanent residence in such a case, as having an irreducible balance equivalent to approximately $130,000 USD is extremely expensive for them. And most importantly, they see no reason or grounds to keep such funds in Indonesia and essentially "freeze" them for an indefinite period.

However, on December 22, 2022, clarification was issued by the General Immigration Directorate, as announced by the sub-coordinator for public relations, Ahmad Nur Saleh, stating that foreigners currently in Indonesia on a retirement KITAS can remain on this visa until "additional rules containing more detailed information are issued." He also emphasized that the "second home" visa is intended to attract affluent foreigners interested in investing in real estate in Indonesia. He referred to the new visa as a "highway toll," providing easy entry for elite foreigners who will conduct business, invest, travel, and operate in Indonesia.

- The "Second Home" visa is not a work visa issued to the foreigner and/or their family residing in Indonesia.

- The foreigner must have a sponsor.

- The foreigner must have an "immigration guarantee" - a certain amount of funds or property with "luxury categories."

- Family members of the foreigner with a "second home" visa, such as spouses, children, or parents, can also obtain the visa.

To obtain the visa, one must submit an application on the website molina.imigration.go.id, attaching:

1) A valid passport with a validity of at least 36 months;

2) Proof of funds in the form of an account owned by the foreigner or a guarantor with funds of at least 2,000,000,000.00 Indonesian Rupiah (two billion Rupiah) or equivalent;

3) A recent colored photograph sized 4 cm x 6 cm on a white background;

4) Resume.

For spouses/children/parents - the same list of documents + a valid "second home" visa of the main applicant + proof of relationship (marriage certificate, birth certificate). This means that the main applicant must apply first, and then their family can apply.

The "second home" visa can be granted for a period of 5 or 10 years.

1) A bank account owned by the interested foreigner in a state bank with a value of at least 2,000,000,000.00 Rupiah (two billion Rupiah), or

2) Proof of ownership of luxury real estate in Indonesia in the name of the foreigner in accordance with land/agricultural legislation and regulations,

3) The "immigration guarantee" (Proof of Fund) should not be transferred, assigned, or pledged until the foreigner obtains the "second home" visa (ITAS).

If these rules are violated, the "second home" visa can be revoked, and the applicant and their family members must leave Indonesia within 7 days. In case signs of rule violations are detected, the head of the immigration service may request the visa holder to present their latest bank statement, bank certificate showing the amount of the "immigration guarantee," or proof of property ownership in Indonesia with luxury status.

If the interested foreigner is unable to provide this evidence, the residence permit of the foreigner and their family may be annulled, and they may face consequences according to immigration administrative legislation.

The "second home" visa can be extended for up to 10 years. Family members' visas are issued for a period not exceeding the validity of the main applicant's visa. After residing in Indonesia for a period of at least 3 years on the "second home" visa, the ITAS visa can be converted to ITAP (which means that the temporary residence permit can be converted into a permanent residence permit).

Currently, it is possible to apply for the "second home" visa, but there are still many unanswered questions:

- What constitutes a "luxury villa" and what are the criteria for categorizing properties as such?

- Must the balance in the account be maintained at all times? In other words, can the funds from the "immigration guarantee" be utilized, considering that, according to the circular letter, they are not "frozen," but verification of the availability of funds amounting to two billion Rupiah can be requested at any time? Failure to provide proof within a week will require leaving Indonesia.

- It is also unclear whether the visa needs to be renewed every five years and whether the "immigration guarantees" need to be reaffirmed during the renewal process.