COVID-19 defined a “new normal” for the world. It shaped not only the world’s view about health protocol, but also the working culture. Companies have moved from a traditional work arrangement (i.e., a desk in an office) to a remote working arrangement (i.e., work from anywhere). This movement developed what we know now as “workcation”, which is a portmanteau of work and vacation, and is defined as a vacation that one spends getting work done.

In 2021, Sandiaga Uno (Indonesia Tourism & Creative Economy Minister) shared his endeavour to open the door for digital nomads to enjoy workcation in Indonesia; the Island of Gods (Bali) is expected to be the main destination. Significant anticipation by digital nomads had been building up since this announcement.

Towards the end of 2022, the Indonesian government officially announced what is known as Second Home Visa with the underlying objective to welcome foreigners to stay in Indonesia for a long-term basis. While foreigners had expected this visa to serve as digital nomad visa, the requirements to obtain Second Home Visa are far from digital nomad-friendly.

The Overview

The Second Home Visa is made available by the enactment of the Circular Letter of the Directorate General of Immigration No. IMI-0740.GR.01.01 of 2022 regarding the Granting of Second Home Visa and Permit (“CL0740/2022”). This visa has been focused with the anticipated digital nomad visa.

Under CL0740/2022, on top of the basics personal data requirement (e.g., resume, photo), the following is required to secure the Second Home Visa and stay permit:

Proof of funds showing a minimum of IDR 2,000,000,000 (two billion Rupiah) or approximately equivalent to USD 130,000; or ownership of luxury property in Indonesia.

Note that the proof of funds should be made available in local account opened at the government-owned bank, and the funds should not be liquidated, transferred, or placed under any form of security during the period of the visa and permit.

Validity and period of stay range from 5–10 years with the possibility to convert the limited permit to be a permanent stay permit.

The Challenges

The proof of funds or ownership of property appear to be geared towards wealthy foreigners and do not set a friendly atmosphere for digital nomads who wish to enjoy workcation in Indonesia for a prolonged period of time.

The alternative from Second Home Visa is Multiple Entry Visa, which would allow 60 days per stay and extendable up to a total of 180 days. Hence, the so-called “visa run” becomes unavoidable.

Recent pro-active approach of the Indonesian immigration authorities in checking permit to ensure it sufficiently covers the purpose of stay builds further anxieties for digital nomads when staying in Indonesia.

Viable Solution

To date, digital nomad stay permit remains in the gray area of the law, and a permanent solution will need to be created by the Indonesian government if it truly intends to open the door for the digital nomads and their workcation culture.

With our experiences to date in advising digital nomads with regards to their stay in Indonesia, we have had the chance to take a closer look into Indonesia immigration laws and create a viable solution.

Sponsorship arrangement by local company(ies) should be considered; details subject to discussion. This solution is affordable (no proof of funds required), sustainable, and ensure highest level of compliance.

Please reach out to us at [email protected] to further discuss the viable solution.

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MURZAL & PARTNERS

For more information, please reach us at Murzal & Partners Law Firm via:

e-mail: [email protected]
Tel: +62 21 29930869
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www.murzallawfirm.com

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