Exploring Indonesia's Second Home Visa Program

On October 25, 2022, the Ministry of Law and Human Rights of Indonesia, along with the Directorate General of Immigration, issued circular letter No. IMI-0740 regarding the "Second Home" visa and limited stay permits.

The preamble of the letter underscores the anticipated slowdown in global economic growth in 2023, coinciding with forecasted recessions and economic inflation in multiple countries. To counteract the potential impact of this global economic downturn on Indonesia, the government is poised to implement strategic measures. At a coordination meeting on October 9, 2022, it was determined that a straightforward and expedient policy for obtaining visas and residence permits is essential for foreigners intending to prolong their stay in Indonesia. The aim is to encourage foreign visitors to remain in Indonesia, thus positively impacting the country's economy, particularly the real estate sector.

Many expats eagerly anticipated this visa, hoping it would allow them to officially live in Indonesia with the same opportunities as those with a residence permit.

However, the document presents some surprises. Notably, the entry threshold for the "Second Home" visa is quite high.

As stated by the Indonesian Minister of Justice and Human Rights, Yasonna H. Laoly, this visa is intended for global investors and billionaires.

The rules for obtaining a “Second Home” visa are as follows:

- The "Second Home" visa is not a work visa but permits a foreigner and/or their family to reside in Indonesia.

- A foreigner must have a guarantor (sponsor).

- The foreigner must provide an "immigration guarantee" – a specific amount of funds or luxury assets currently set at 2,000,000,000 IDR (two billion IDR, equivalent to approximately $130,000 USD).

- The "immigration guarantee" must not be transferred, handed over, or pledged while holding the "Second Home" visa.

Violation of these rules could lead to the revocation of the "Second Home" visa. If violations are identified, the head of the immigration service may request the latest account statement, a bank certificate showing the "immigration guarantee" amount, or proof of luxury property ownership in Indonesia. Failure to provide this documentation could result in the cancellation of the foreigner’s and their family’s residence permits, subjecting them to penalties under immigration administrative law, and necessitating departure from Indonesia within 7 days.

To apply for the "Second Home" visa, visit the website molina.imigration.go.id. The required documents include:

1. A valid passport with a minimum validity of 36 months.

2. Proof of funds, which can be either:

   - An account in a state bank with a balance of at least 2,000,000,000 IDR (two billion IDR).

   - Proof of ownership of luxury property in Indonesia under the foreigner's name, as per land/agricultural laws and regulations.

3. A recent color photograph (4 cm x 6 cm) against a white background.

4. A resume.

Family members (spouses, children, or parents) of a "Second Home" visa holder are also eligible to obtain this visa. They need the same documents as the principal applicant, plus the principal applicant's valid "Second Home" visa and proof of relationship (marriage certificate, birth certificate). Therefore, the principal applicant must apply first, followed by their family.

The "Second Home" visa is initially issued for a period of 5 years and can be extended up to a total of 10 years. Family members receive a visa with a duration that does not exceed that of the principal applicant. After residing in Indonesia for at least 3 years on a "Second Home" visa, holders can convert it into an ITAP (permanent stay permit).

Circular letter No. IMI-0740 also proposed transitioning pension KITAS holders to the "Second Home" visa, sparking significant concern among many elderly expats from Europe, Australia, and other countries. On social media, many have expressed their intention to change their country of residence if compelled to switch to a "Second Home" visa due to the exceedingly high financial entry requirements for obtaining and maintaining it.

In response, the Directorate General of Immigration issued a clarification on December 22, 2022, communicated by Public Relations Sub-Coordinator Ahmad Nur Saleh. He announced that current pension KITAS holders can remain on their existing visa until further notice. He emphasized that the "Second Home" visa is designed to attract wealthy foreigners interested in investing in Indonesian real estate. He described the new visa as a "toll road," providing easy entry for elite foreigners to conduct business, invest, travel, and engage in various activities in Indonesia.

While the "Second Home" visa is designed to benefit a specific affluent segment of Indonesia's visitors, there are still uncertainties surrounding its issuance:

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

- The requirement specifies that proof of the two billion IDR funds may be requested at any time, and failing to provide it could necessitate leaving Indonesia within a week. However, there is no clear guidance on whether the account balance must remain stable throughout the visa duration. Can funds from the "immigration guarantee" be utilized, considering they are not "frozen"?

- Does visa renewal within five years depend on confirming the "immigration guarantee" funds?

This document is a translation of an article authored by Anna Kartashova