Exploring Market Opportunities in Jakarta for Golden Visa Holder

Explore the Market Opportunities for Golden Visa Holders in Jakarta

  • InCorp Editorial Team
  • 10 May 2024
  • 6 minute reading time

Due to the Golden Visa program, Jakarta is becoming an attractive destination for entrepreneurs and investors. The city offers a dynamic business environment with many market opportunities. This visa initiative promises to revolutionize how international professionals engage with Jakarta’s growing markets.

Is Jakarta A Good Place to Start A Business?

The Jakarta Provincial Government, known as Pemprov DKI Jakarta, recently announced that local and foreign investors invested IDR 79.5 trillion in the first half of 2023. This significant investment highlights the city’s growing importance on the national stage and its attractiveness to domestic and international investors. 

As Jakarta continues solidifying its position as a key player in the global economic arena, the prospects for sustained growth and prosperity appear promising. Consequently, Jakarta has become a focal point for those interested in participating in Indonesia’s dynamic economic landscape.

1. Strong Investment in Jakarta

Jakarta, the thriving capital city of Indonesia, has seen a significant increase in local and international investments, solidifying its position as a major economic center in the region. 

The city’s robust economic growth is evident from the infusion of IDR 40.6 trillion in domestic investment, which accounts for an impressive 12.9% of the total national investment. 

In addition, foreign direct investment has reached USD 2.6 billion (equivalent to IDR 38.9 trillion), representing a remarkable 10.7% of the total national investment.

2. Key Sectors

Many investments have been directed towards key sectors that play a vital role in driving Jakarta’s economic growth. The transportation, warehouses, and telecommunications sectors have emerged as the top contenders, attracting a substantial investment of IDR 29.11 trillion. 

In addition, other service sectors have also made significant contributions, with a total investment of IDR 15.89 trillion. The real estate, industrial zones, and office sectors have received notable investments of IDR 11.16 trillion.

3. Positive Economic Impact

The impact of these investments can be felt throughout Jakarta’s economy, resulting in a positive trend. In the second quarter of 2023, Jakarta’s economic growth reached an impressive 5.13%, a notable increase from the 4.95% recorded in the previous quarter. 

This growth spurt indicates a robust economic environment driven by strategic investments in key sectors and establishes Jakarta as a thriving economic powerhouse.

Top Attractive Sectors in Jakarta for Investors

Jakarta’s economy comprises diverse sectors and industries, and Indonesia’s skilled yet cost-effective workforce makes it an appealing destination for foreign investments. 

Key Economic SectorsProminent Industrial Sectors
Trading Electronics
Financial ServicesMechanical Engineering
ServicesBiomedical Sciences Manufacturing

Other than the above economic and industrial sectors, Jakarta’s location is also close to some industrial areas: 

  • The East Jakarta Industrial Area (EJIA) has evolved into one of Indonesia’s most significant industrial clusters. 
  • Another notable area is the Jakarta Bay Industrial Zone (JBIZ). Bekasi, situated on Jakarta’s eastern border, hosts several industrial zones and serves as a factory town for Jakarta and a source of daily commuters to the city center.

Furthermore, the Port of Jakarta, known as Tanjung Priok Port, plays a pivotal role in the city’s economic landscape. As the country’s largest seaport, it boasts an annual traffic capacity of approximately 45 million tons of cargo and 4 million TEUs (twenty-foot equivalent units).

Seamless Investment and Residence with the Golden Visa

Indonesia has officially launched a Golden Visa program, targeting high-caliber foreign individuals contributing to the nation’s economic growth, encompassing corporate and individual investors. 

The initiative’s core is Regulation Number 22 of 2023 from the Ministry of Law and Human Rights (Permenkumham), addressing Visas and Residence Permits.

This novel initiative is governed by the Ministry of Finance Regulation Number 82 of 2023, enacted on August 30, 2023. According to the OECD, a Golden Visa constitutes a residency or citizenship scheme facilitated through investment.

Foreign nationals can reside in the country by investing substantially or making an agreed-upon monetary contribution. However, visa approval is not exclusively contingent on investment.

Criteria for Obtaining the Golden Visa in Jakarta

The application requirements are subject to variation based on the benefits associated with it.

For individuals starting their own company in Jakarta:

  • A minimum investment of USD 2.5 million makes you eligible for the 5-year Golden Visa.
  • An investment of USD 5 million or more qualifies you for the 10-year Golden Visa.

For directors or commissioners of large-sized companies seeking residence in Jakarta:

  • A minimum company investment of USD 25 million makes you eligible for the 5-year Golden Visa.
  • A company investment of USD 50 million or more qualifies you for the 10-year Golden Visa.

For individual foreign investors not intending to establish a company in Jakarta:

  • Allocating funds worth USD 350,000 makes you eligible for the 5-year Golden Visa.
  • Allocating funds of USD 700,000 or higher qualifies you for the extended 10-year Golden Visa.

These funds offer versatility, allowing for investment in Indonesian government bonds, publicly listed company shares, or placement in savings or deposits.

The Benefits of Investing in Jakarta with the Golden Visa 

The Golden Visa program in Jakarta signifies a notable change in immigration regulations by introducing residency permits lasting 5 to 10 years. This marks a departure from the previous absence of 10-year residency visas.

Golden Visa holders can anticipate exclusive benefits, including:

  • Prolonged stay durations
  • Streamlined entry and exit processes
  • Increased efficiency, eliminating the need for ITAS (Temporary Stay Permit) applications at immigration offices.

Beyond investor-based Golden Visas, various categories are available, catering to internationally recognized individuals capable of contributing to Indonesia’s growth. In this specific category, eligible foreign nationals receive proposals and recommendations from a national-level government institution to obtain the visa.

Samuel Altman’s 10-Year Residency

Samuel Altman, the former CEO of OpenAI, has become the first foreign national to benefit from Indonesia’s newly launched visa program. Under the “World Figures” sub-category, Altman was granted a 10-year residency, making him the program’s inaugural beneficiary.

Guide to Doing Business in Jakarta

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Apply for a Golden Visa and Start Investing in Jakarta

Jakarta is a highly lucrative investment destination, offering a dynamic and flourishing business environment. The newly introduced Golden Visa program further enhances the city’s appeal to foreigners aiming to explore market opportunities in Jakarta.

For those interested in investing in Jakarta, InCorp Indonesia offers company registration and immigration services to streamline your end-to-end business journey in Jakarta. Fill out the form below to start consulting with us. 

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

Frequent Asked Questions

The sponsor must be a company for single and multiple-entry businesses and working visas. The sponsor company is the legal entity that invites you to a business meeting or the business you will be working for. Regarding social-cultural and retirement visas and KITAS & KITAP stay permits, the sponsor must either be an Indonesian legal entity or a citizen. If you need a visa sponsor, InCorp provides sponsorship via HR Outsourcing and manages payroll for your foreign employee.

As their names suggest, the main differences between the three business kinds in Indonesia lie in the businesses and the purpose of their incorporation. Local company owners (PT) must be Indonesian citizens, as even 1 percent of foreign ownership is not allowed. This type of company is not limited to entering any business field, and restrictions on incorporation are not so tight. On the contrary, a foreign-owned company (PT PMA) is open to international investors, but the maximal percentage of foreign shares differs in various business sectors. Contact InCorp to get the most updated information on the Negative Investment List. International investors tend to open representative offices as a first step to understanding the Indonesian market before setting up a limited liability company. This type is used for marketing and promotion activities and needs the right to sell directly and receive income.

Yes, this mainly applies to import and export businesses. Instead of establishing a company, you can use an under-name import service, an importer of record.

It should take between 30 to 45 days.