17 February 2021
Indonesian Chamber of Commerce and Industry (KADIN) recorded a huge loss of tourism sector had reached more than IDR 10 trillion (more than 700 million USD) due to the Covid-19 outbreak until the end of 2020. The country is currently preparing several scenarios to recover it’s economic situation strategically.
Minister of Tourism and Creative Economic, Sandiaga Uno has announced his plan to establish a long-term visa valid for up to five years. This visa will also allow foreign nationals to invest and working in Indonesia legally. “The concept is to create a long term stay, second home visa for five years term. They deposit IDR 2 billion (USD 142.300) per individual or IDR 2.5 billion (USD 178,000) for the whole family. They will be allowed to invest or do business here, and it is extendable every five years,” explained Sandiaga.
Sandiaga has discussed this matter with the Law and Human Rights Minister, also in-charge of managing Immigration offices, Yasonna Laoly, to get the big data of business owners and travellers who are willing to stay at least three to four months in Bali or Indonesia; those groups are the main targets for this new upcoming long-term visa product. This plan also expected to support the recovery of the tourism sector in Bali.
The minister is very optimistic considering that long-term visit visas are in line with the latest trends and have also been widely implemented in many countries. Besides, there are one billion global citizens aged between 60 years and over, have an income of more than 15 trillion US dollars per year who able to stay longer, shop and travel longer. In that sense, Indonesia seems to expect an improving quality in the period of stays and numbers of spendings from the foreign visitors.
If things go as planned, this five-years visa will be launched by the mid of 2021. Three destination are prepared to welcome the holders of long-term visa, Bali, Batam and Bintan.
Not only rely on this strategy; but the new Minister of Tourism Sandiaga also encouraged the government to create more bilateral agreements on creating a travel corridor arrangement programs with countries like Malaysia, United Arab Emirates, China, South Korea, and Singapore, to help to revive local’s tourism industry.