INDONESIA Jakarta wants to attract wealthy retirees, new visa rules from Christmas

Foreigners will be able to apply for a permit of up to 10 years after paying two billion rupees at a state bank. But older people who have lived in Bali for decades and have already invested their money there are at risk of having to leave. Malaysia and Thailand have also passed similar regulations.

Jakarta () – On December 25, a second home visa will be introduced for the first time in Indonesia, which can be obtained by paying 2 billion rupees (more than 120,000 euros) at a state bank or by presenting documents certifying ownership of luxury real estate.

The new rules will grant residence permits to foreigners for up to 10 years and aim to attract high net worth millionaires and very wealthy elderly people. At the same time, however, they risk expelling foreign retirees who have built their second home in Indonesia (particularly in Bali) and, because they have already invested in the country, now do not have enough money to deposit in the banks. from indonesian. These are retirees who, according to the residents of “the island of the gods”, kept the local economy afloat in the worst phases of the covid-19 pandemic, when foreign tourists were prohibited from entering the country.

Other countries in the region have long ago adopted similar measures. In Malaysia, a second home visa can be obtained for 10 years on the condition that the applicant earns 8,500 euros per month and pays a deposit of 1 million ringgit (almost 212,400 euros). Thailand, on the other hand, allows stays of up to 20 years (with transportation to the airport and complete health checks) for one million baht per year (more than 27 thousand euros).

Until now, the Indonesian retiree visa was granted to visitors over the age of 55 who could stay in the country for between one and five years for less than $1,000 a year. Now the elderly who have this visa will have until mid-2023 to comply with the new regulations.

Local authorities reported that they are awaiting instructions from Jakarta on what to do with those people who do not have the financial resources to remain in the country. The ministerial directives also do not specify the value of luxury properties, which are valued differently in Bali and in the Indonesian capital.

Many have regretted the government’s decisions after so many years of investing in the country by hiring local staff, such as gardeners, drivers or caregivers for their children.

“The Balinese go out of their way to make people feel welcome,” an American retiree told the Straits Times anonymously. He had returned to the United States with his wife during the pandemic, but the couple still paid Rs 80 million and “extended the lease” because they wanted to “help” the local population.

“Many of us have been here 10, 20, 30 years or more. We invest in land and build or rent houses with the idea that we would live here,” a woman said on condition of anonymity. “We cannot afford to return to our home countries and most do not have the 2 billion rupees to deposit in the bank,” he added. “I think that in trying to attract wealthy retirees to Bali the government has not taken into account the thousands of modest retirees already living here.”