Indonesia has lifted most restrictions on international tourists, and the government expects up to 3.6 million foreign visitors this year. Before the pandemic, the country saw a gradual increase in foreign tourist arrivals from eight million in 2012 to 16 million in 2019, of which six million arrived in Bali.
What's expected?
Soon this year, Indonesia will start offering a visa that will allow remote workers to live there tax-free as long as their earnings come from outside the country. Indonesia's tourism minister Sandiago Uno announced the five-year "digital nomad visa" earlier this month, telling reporters that he hopes the latest move will bring in up to 3.6 million overseas travelers and create one million jobs for Indonesians. He is expecting that expatriates will open businesses and startups that can generate jobs for the country as well as experts who can fill the labor shortage. Mr. Uno said that the proposed remote working visa would mean freelancers across the globe can live on islands like Bali, provided their earnings come from companies outside of Indonesia.
Furthermore, according to the minister, the decision was based on research that showed Indonesia was "top of mind" for 95% of the remote workers that took part in the survey. He said similar plans for a digital nomad visa were in the works last year, however, they had to be put on pause due to the Covid-19 pandemic.
"In the past, the three S was: sun, sea and sand. We're moving it to serenity, spirituality, and sustainability. This way we're getting better quality and better impact on the local economy," the Indonesian minister said. The new program for digital nomad visas is an answer to the economic needs of the country.
Indonesia visa options
Currently, there are a variety of visas available to remote workers wanting to visit Indonesia, including Visa on Arrival (VoA), Tourist or Cultural Visa and the country's Free Visa. However, these only last between 30 and 180 days.
When applying for an Indonesian work visa, expats need a job offer beforehand. They cannot apply for an Indonesia work visa if they do not have a sponsor (employer) in Indonesia who can help them get a work permit. The work visa and work permit application process (often referred to as KITAS) is long and bureaucratic, and it can take up to several months.
For an Indonesian work visa, it is the employer who has to do a lot – if not most – of the work, such as obtain authorization to hire expats, their work permit, and their limited stay visa/residence permit.
What are the sectors needed for digital nomads and investors?
The government of Indonesia is committed to boosting the nation's investment trend. Efforts have been made to speed up the licensing process, special incentives for investors, ease of access, as well as a priority investment list. This is done to invite more investors to participate in the country's growth, thus taking Indonesia's investment trend to a whole new level.
According to the Ministry of Investment, there are six priority sectors in Indonesia. The government has arranged to be developed further health, electronics, renewable energy, infrastructure, automotive, and mining. These sectors have had steady growth over the years, making them a major hit for investment. Other sectors aimed for future growth are manufacturing, tourism, e-commerce, and infrastructure.
