Article by Palm View Properties, September 28, 2022
Earlier this month, as reported by the Cabinet Secretariat of the Republic of Indonesia‘s website, the President of the Republic of Indonesia, Joko “Jokowi” Widodo, called for immediate change and reform in the immigration policies pertaining to the application processes for Visa on Arrival (VoA) and limited stay permits (KITAS), at the Merdeka Palace, Friday (09/10).
This came at the back of the President receiving numerous complaints related to immigration services from investors, tourists, and foreigners who want to apply for a limited stay permit (KITAS). He went on to say; “What does it mean? What will it bring? Inconvenience. This must be reformed, totally. It must provide ease and service. It must be reformed. It must be reformed if we want investment and tourists coming to the country.”
Indonesia is strongly emerging from the COVID-19 pandemic and its economy benefits greatly from Foreign Direct Investment (FDI) and tourism. This ranges from individual and foreign/ expat families moving to Indonesia permanently, and setting up businesses (PT.PMAs), acquiring stay permits for themselves and foreign employees, as well as millions of tourists annually visiting the beautiful archipelago. In places like Bali, Raja Ampat, Labuan Bajo, Yogyakarta, Bintan and Lake Toba, tourism is arguably the number one economic driver, both local and foreign, but mainly foreign.
This contributes to job creation; education enhancement and it diversifies the Indonesian economy. However, there has been an ever-growing concern from foreign investors and tourists alike, regarding processes and systems within immigration.
As a reformed minded leader, President Joko Widodo has made a strong point for this to change, and the month of September has seen the issuance of a new circular regarding the new regulations for immigration services such as visa on arrivals and stay permits.
The Directorate General from the Ministry of Law and Human Rights issued a new circular with changes in regulations and policies, mainly regarding the processes involving the Visa on Arrival program and Limited Stay Permits for foreigners. In this circular addressed to the Primary High Leader within the Directorate General of Immigration, Head of the Regional Office of the Ministry of Law and Human Rights, Heads of Immigration Divisions throughout Indonesia and Heads of Immigration Offices throughout Indonesia, it states explicitly that the goal is to set up the immigration policy to simplify bureaucracy, simplify and accelerate stay permit services to support policies which will increase foreign investment to the country.
This is simply adding to an investment climate for foreigners which is already been revolutionized and simply making foreign investment more achievable and easier. There have been massive changes ongoing, which is a clear attempt by the current administration to continue to build positively on an economy set for exponential growth over the next 5 to 10-years.
The announcement from the Indonesian government to bring in the new Omnibus Law in Indonesia on March 2021, which saw the negative investment list replaced by the positive investment list, was a clear message that the country wants foreign investment, the country encourages it and adopted a pro-foreign investment mindset and attitude!
Now it will become easier, more transparent and above all, less timeous to acquire the necessary visa to be able to invest or travel and spend money in the country. It has an instant and very direct positive impact on the local souvenir vendor, restaurateur and tour guide.
Take Bali, for example; 6 months ago there was very little enthusiasm and hope started fading, local and foreign business owners and anyone related to the tourism industry was heavily impacted, the little travel and money spent was from domestic tourism and foreign expats (Business Owners.)
Indonesia is rapidly emerging from the effects of the pandemic and yes, like everything else, large numbers of tourists can have negative impacts on the environment, but for the here and the now, it is essential for these tourism dependent areas to recover and the bottom-line is that positive changes from government to accelerate and encourage investment and travel by making it easier to acquire visas, does help!
To top it all off, never has there been a greater time to invest in Indonesia, see this article Indonesia’s Golden Age: The Tiger Is Awake by our partners at Seven Stones Indonesia, on why you shouldn’t miss the investment train which is set to reach incredible destinations!
Palm View Properties has seen a 116-percent increase in business set up inquiries (PT.PMA Companies), onwards from January this year and with that goes Investor Visas (KITAS) and a nearly 1,000-percent increase in Visa on Arrival extensions from July 2022. This along with the 15-percent increase in real estate related inquiries, clearly shows that the economy is on its way to recovery and foreign investment is enthusiastic about the market.
If you are interested in doing business in Indonesia or have property related inquiries, book your free virtual consultation with Palm View Properties CEO and Founder, Desvann van Vuuren today, simply by emailing us at the email below.
For the complete Government issued Circular on the new changes in immigration policies for Visa on Arrival and Limited Stay Permits processes, please email us at email@example.com
Image: PR of Cabinet Secretariat/ Agung