From Bali to Jakarta, Indonesia eyes property, economic boost with residency visa plan for foreign investors

Name: China, Indonesia vow stronger ties as President Joko Widodo tours East Asia
Uploaded: 2022-12-05T01:30:14.000Z
Duration: 2 min
Description: China, Indonesia vow stronger ties as President Joko Widodo tours East Asia

With a US$130,000 minimum deposit and income-tax holiday, foreign investors may qualify for local residency for five to 10 years

Scheme may surpass the popularity of Malaysia’s ‘second home’ residency programme, Juwai’s CEO Ansari says

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Tourists seen arriving at Ngurah Rai Airport in January 2022. Bali’s tourism industry is still witnessing a significant slowdown due to the pandemic. Photo: EPA-EFE

Cheryl Arcibal

Published: 9:30am, 5 Dec 2022

Indonesia is preparing to unveil more details on its long-term residency visa scheme to attract foreign capital and property investors including from mainland China and Hong Kong, as Southeast Asia’s biggest economy recovers from a pandemic-induced slump.

Officials in Jakarta have so far indicated a minimum requirement of US$130,000 in bank deposits and a tax holiday on overseas income, to rival incentives in similar schemes dangled by its regional neighbours like Malaysia and Thailand.

The scheme may give local real estate prices a boost as well as revive tourism in its popular islands like Bali. A central bank survey in August showed a midyear recovery in the primary residential market lost momentum, while the nation’s US$1.2 trillion economy grew at an annual rate of 5.7 per cent last quarter, trailing market consensus.

“This visa scheme could be very successful with those from mainland China and Hong Kong who wish for an attractive lifestyle and low cost of living,” said Kashif Ansari, co-founder and group CEO of Juwai IQI, a property portal. It could surpass the success in Malaysia, he added.

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China, Indonesia vow stronger ties as President Joko Widodo tours East Asia

Malaysia’s programme requires minimum bankable assets of 1.5 million ringgit (US$334,000) and at least 40,000 ringgit of monthly offshore income. The “second home” programme has lured over 42,000 foreigners, a third of them from mainland China and Hong Kong, according to data compiled by Juwai IQI.