Bali should prepare for an increase of investor & digital nomad after the new Visa
Indonesia finally issued a second-home visa on October 25th 2022 that will last for 10 years. How would Bali respond to the new policy?
The new visa will let you stay in Bali for 10 years consecutively
The Ministry of Law and Human Rights, Directorate General of Immigration, has recently introduced a new type of visa for foreign nationals called the Second Home Visa Facility. This visa allows foreigners who meet several requirements to stay in Indonesia for up to ten years.
This visa is intended for international businessmen or older tourists who want to stay and conduct business in Indonesia for longer.
The government intends to implement a non-fiscal stimulus policy to invite said tourists to Indonesia, especially those with large capital and international wealthy individuals.
The new 10 years Indonesia visa
will cater best for entrepreneurs and large capital holders
Photo from Freepik
The policy, which will come into effect on Christmas 2022, will allow foreigners who obtain this visa to stay in Indonesia for 5-10 years to work, invest and engage in other activities that benefit the Indonesian economy.
Visa applications can be submitted online at visa-online.imigrasi.go.id. Applicants must submit several documents, including a national passport valid for at least 36 months and proof of funds in the form of an account held by the applicant or a guarantor with a minimum amount of 2 billion IDR (around 128.000 USD).
Applying for a second home visa will cost 3 million IDR (200 USD). The government is confident that the second home visa policy will promote the national economy, especially in Bali, as the Visa on Arrival (VoA) service has proven that it can boost Indonesia’s non-tax revenue.
Bali's opportunities after the 10-year visa policy
The introduction of the visa corresponds with the strong upswing in tourist arrivals in Indonesia. It will therefore contribute to more opportunities for Bali. At the same time, the upcoming G-20 Summit in Bali in November will bring international attention to the island and welcome tens of thousands of delegates.
However, Putu Winastra, head of the Indonesian Association of Travel Agents in Bali, was critical of the new policy.
"The second residence visa is given to people who will stay in Bali for a long time. Such visitors do not need us (the tour operators) as they will not stay in hotels," CNA said.
This means that there could be a new trend in tourism in Bali, especially in the accommodation sector. For the hotels, this may not sound exciting, but for the villa owners, this change will be a breath of fresh air.
Villa will welcome a new demand after Bali’s new visa.
Photo from Bali Home Immo
When staying in Bali for a longer period, international visitors who do not live in their home country want a real "second home".
As a primary target of the new visa policy, large capital holders will also want to invest and participate in Bali's ever-growing property market.
The new visa policy in Bali also opened the gates for digital nomads to travel and work around the world. As a result, there has been a surge in demand for housing in these countries.
Digital nomads will find it easier to work from Bali.
Photo from Unsplash
With the increase in demand, there has been a need for a more suitable long-term option for these individuals. Such options are leasehold apartments and loft spaces. These are apartment or loft spaces that are leased out by their owners for a time, ranging from 10 up to 50 years.
According to our estimate, this option has become popular among digital nomads because it allows them to stay flexible with their living arrangements and move around as they see fit without having to worry about renting long-term leases on properties they may not use often enough while at the same time they can generate passive income from renting out the properties during their travel.
Apartments and lofts offer a more flexible arrangement for digital nomads.
Photo from Bali Home Immo
In addition to this, some leasehold properties offer furnished apartments/lofts at competitive rates compared with other types of accommodation such as hotels or hostels where guests usually have limited access.
The new 10-year visa coupled with the upcoming G20 Summit will provide a great opportunity for Bali and international visitors alike.
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