Only a week ago, Indonesia announced the upcoming introduction of the second home visa. Those with more than $130,000 in their bank accounts will be able to apply for a temporary residence visa for 5 or 10 years.
However, locals in Bali and government ministers are concerned that the new visa category could lead to an “invasion” of investment and thus oversaturation of the market.
Yasonnah Laoly, Minister of Law and Human Rights of the Republic of Indonesia, dismissed the fears, saying there would be no “invasion” of immigrants to places like Bali.
Locals are concerned that the new visa will allow people to come, invest, overdevelop, and then depart when the market becomes too crowded, whether in the housing market, the hotel industry, or any other business.
On Monday, October 31st, Laoly told reporters at the beginning of the Synergy and Collaboration for Optimizing Intellectual Property Ecosystem conference in Kuta that the influx of forging investment, particularly from China, would not be a problem.
He said, “there are critics saying, well we’ll be raided later by China and others. Malaysia was already ahead of us, the name was silver hair visa, it wasn’t invaded. We have Bali, we have other areas because they have to invest here”.
Bali’s second home visa, together with the Omnibus Law in 2020 make it easier than ever for investors, businesses and entrepreneurs to establish a presence in Bali. Some criticized the strategy, saying it eliminates most laws protecting Indonesian interests when buying and selling land.
Under the scheme, foreigners will be able to purchase both land and housing, granting them permanent ownership and the right to resell.
The new second home visa is expected to attract a wide range of people, not just entrepreneurs and investment tycoons. Anyone who can show proof of $130,000 in their bank account will be eligible for the visa.
According to the Ministry of Immigration, this will serve to expand the pool of people who can come and live in Indonesia. The visa is intended for high earners, retirees and highly skilled digital nomads who want to make a life in Indonesia.