Granting of Second Home Visa and Stay Permit in Indonesia for Foreigners
General Overview
In 2023, according to various reports, the global economy will suffer from recession and inflation. Therefore, Indonesia as a country must take precautions and minimalize or even avoid the negatives effect of global recession and inflation. One way to do so is by simplifying the process of foreigners gaining stay permits in Indonesia through the Directorate General of Immigration (“DGI”) Circular Letter No. IMI-0820.GR.01.01 of 2022 concerning Visa and Second Home Stay Permit (“DGI CL 0820/2022”), which was issued on 20 December 2022. The DGI CL 0820/2022 was implemented to replace the DGI Circular Letter No. IMI-0740.GR.01.01 of 2022 concerning Granting of Visa and Limited Stay Permission Second Home ("DGI CL 0740/2022"), which was issued back in October of 2022. This immigration policy is a non-fiscal incentive that can become a stimulus for foreigners to live and positively contribute to Indonesia's economy amid uncertainty in the global economy.
This ARMA update will discuss the substance of DGI CL 0820/2022, including the conditions and requirements to gain a second home visa and stay permit in Indonesia.
Scope and Definition
Second Home Visa has been regulated through the Government Regulation No. 31 of 2013 concerning the Implementing Regulation of Law No. 6 of 2011 concerning Imigration as lastly amended by Government Regulation No. 48 of 2021 (“GR 31/2013”). Based on the GR 31/2013, a limited stay visa may be granted for non-work related activies, including second homes, which is an immigration facility given to foreigners and/or their families who live permanently in Indonesia for 5 (five) years or 10 (ten) years after fulfilling certain requirements (“Second Home Visa”).¹
The Second Home Visa becomes the basis for granting a stay permit which may be given to foreigners on the basis of second homes to stay in the Indonesian territory (“Second Home Stay Permit”). The Second Home Stay Permit may be in the form of a limited stay permit which is given for a period of 5 (five) or 10 (ten) years or in the form of a permantent stay permit which is given for a period of 5 (five) years or for an unlimited time.
The DGI CL 0820/2022 is issued to provide easeness and certainty for the granting process of Second Home Visa and Second Home Stay Permit, with or without guarantors, and improve the technical policies to be used as a guide for immigration offices for the issuance of the Second Home Visa and Second Home Stay Permit.²
Requirements to Obtain Second Home Visa and Second Home Stay Permit
The application to obtain the a Second Home Visa and Second Home Stay Permit may be done through the online application by attaching among others (i) the passport of the foreigner that is still valid for at least 36 (thirty-six) months,; (iii) statement that states that the foreigner or guarantor has funds at least equivalent to Rp2,000,000,000 (two million rupiahs) or certificate of property ownership in Indonesia in the name of the applicant ("Proof of Funds").
Other than for individuals, the DGI CL 0820/2022 also regulates the granting of a second home visa for the foreigner's family or relatives, which is simplified from the previous guideline from DGI CL 0740/2022. Now, the Second Home Visa and Second Home Stay Permit will need to only attach a statement of having valid and official documents proving the family relationship as a wife/husband, child or parent of the applicant of the Second Home Visa and/or Second Home Stay Permit.³
Limitations
The Second Home Stay Permit cannot be given for a term that exceed the validity period of the holder’s national passport. Further, the validity period of the stay permit given to the relatives/family of a Second Home Stay Permit holder cannot exceed the validity period of the Second Home's Stay Permit.⁴
Reporting of Proof of Fund
Proof of Funds becomes a requirement in applying for a Second Home Visa as well as a Second Home Stay Permit. The Proof of Funds reported could be in the form of (i) a statement letter issued by the bank or proof of account in a state-owned bank; or (ii) a certificate of ownership of property in Indonesia. However, this provision does not apply to relatives/families of the Second Home Stay Permit holder, instead the relevant documents showing proof of relationship such as marriage or birth certificates must be submitted.⁵
However, if the foreigner fails to report and provide the Proof of Funds and the related relevant relationship documents, the Second Home Stay Permit may be revoked. Further, failure to comply to the commitment of such Proof of Funds obligations may result in the administrative action of deportation.⁶
Guarantors
The application to obtain a Second Home Visa and/or Second Home Stay Permit may be submitted with or without a guarantor. The guarantor may be in the form of an individual Indonesian citizen or a corporation. In the case that the guarantor is a corporation with the business activity as a real estate developer, the guarantor must submit an approval letter from the Minister of Law and Human Rights that contains the details of the asset ownership of the guarantor that may be used as a Proof of Funds.⁷
Article 102 (3) (f) and its elucidation of GR 31/2013
Point 2 of DGI CL 0820/2022
Chapter II of DGI CL 0820/2022
Chapter II Point (8) and (10) of DGI CL 0820/2022
Chapter III of DGI CL 0740/2022
Chapter IV of DGI CL 0820/2022
Chapter V of DGI CL 0820/2022
Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.
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