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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.

Looking for more villas or apartments in Bali? We provide a curated selection of Bali villas for sale, rentals and land in Canggu, Seminyak, Pererenan, Umalas, Uluwatu, and more. Check out our online catalogue of Bali real estate and follow our social media for more updates.

Bali, the famed Island of the Gods, has long been a magnet for travelers seeking paradise. However, beyond its stunning landscapes and vibrant culture, Bali is emerging as a hotspot for real estate investment, and 2024 presents a particularly opportune moment to seize the advantages of this burgeoning market.

 

1. Economic Resilience

 

As the global economic landscape continues to evolve, Bali has showcased remarkable resilience. Despite the challenges posed by global uncertainties, the island's economy has demonstrated steady growth. With a diverse economy that includes thriving tourism, agriculture, and a growing service sector, Bali stands as an attractive investment destination.

 

2. Tourism Rebound

 

After a period of subdued travel due to external factors, Bali is experiencing a notable tourism rebound. The island's unique charm, coupled with improved connectivity and infrastructure, is drawing a surge in visitors. This resurgence in tourism not only enhances the appeal of Bali as a vacation destination but also contributes to the demand for rental properties, making it an ideal time for real estate investments.

 

3. Infrastructure Development

 

Investors often seek regions with ongoing infrastructure developments, and Bali is no exception. The island has been investing significantly in upgrading its infrastructure, including roads, airports, and utilities. These developments not only enhance the overall quality of life but also contribute to the appreciation of real estate values. Investing in Bali in 2024 allows you to capitalize on these positive changes.

 

4. Favorable Regulatory Environment

 

The Indonesian government has been proactive in creating a conducive environment for foreign investors. However, foreigners can’t own property in Indonesia without a golden visa (KITAS) –also referred to residence permit. Read more about property ownership titles here. Fortunately, this commitment to fostering a friendly investment climate enhances the appeal of Bali as a destination for global investors looking to diversify their portfolios.

5. Increasing Demand for Luxury Properties

 

Bali has witnessed a growing demand for luxury properties, driven by an influx of high-net-worth individuals seeking exclusive retreats. The island's unique blend of natural beauty and cultural richness attracts discerning buyers looking for premium real estate. Investing in upscale properties in Bali in 2024 positions you strategically to cater to this rising demand.

 

6. Sustainable Development Initiatives

 

Bali is increasingly embracing sustainable development practices. Eco-friendly resorts, green architecture, and a focus on preserving the island's natural beauty are becoming integral to new projects. Investing in Bali aligns not only with financial goals but also with the global trend towards responsible and sustainable investments.

 

7. Potential for High Returns

 

Historically, real estate in Bali has demonstrated strong appreciation. With the current economic and tourism resurgence, there is significant potential for high returns on investment. Whether you are considering short-term gains through rental income or long-term appreciation, Bali offers a compelling case for investors seeking profitable opportunities.

 

In conclusion, 2024 presents a golden opportunity for real estate investors to capitalize on the unique advantages offered by Bali. With a resilient economy, a rebounding tourism sector, ongoing infrastructure development, and a favorable regulatory environment, the Island of the Gods stands ready to welcome savvy investors looking to secure their stake in paradise. As the global economic landscape evolves, investing in Bali is not just a financial decision; it's an investment in the timeless allure of a destination where natural beauty and cultural richness converge to create a truly unparalleled experience.

 

On February 14th, 2024, the Indonesian province of Bali implemented a significant policy change affecting international tourists. The provincial government introduced an entry tax aimed at foreign visitors, signaling a shift in the tourism landscape of one of the world's most beloved destinations. This measure, intended to protect Bali's environment and culture, carries implications for both the tourism industry and the preservation efforts on the island.

 

Background:

Bali, renowned for its stunning landscapes, vibrant culture, and warm hospitality, has long been a magnet for tourists worldwide. Before the COVID-19 pandemic, tourism played a pivotal role in Bali's economy, contributing approximately 60% to its annual GDP. However, with the pandemic's impact disrupting travel patterns and highlighting the need for sustainable tourism practices, Bali's authorities have taken decisive steps to balance economic prosperity with environmental and cultural preservation.

 

The Entry Tax: How Much You Need to Pay

The entry tax, first announced the previous year, officially came into effect on Wednesday, 14th February 2024 –Valentine's Day, marking a significant milestone in Bali's tourism management strategy. Under this new regulation, foreign tourists entering Bali from abroad or other parts of Indonesia are required to pay a fee of USD 9.62, equivalent to approximately 150,000 Rupiah, charged in Indonesian currency. Domestic Indonesian tourists are exempt from this fee.

 

How and Where to Pay

To facilitate the payment process, the Bali Provincial Government has established an online platform, Love Bali, where foreign tourists can conveniently pay the entry tax before their arrival. Additionally, tourists have the option to settle the fee directly at the international airport and seaport upon entry into Bali. The revenue generated from this entry tax will be allocated towards conservation efforts aimed at preserving Bali's natural beauty and ensuring a sustainable and comfortable environment for residents and visitors alike.

 

Objectives:

Authorities emphasize that the implementation of the entry tax is not merely a revenue-generating measure but a proactive step towards safeguarding Bali's environment and culture. With increasing concerns over environmental degradation, over-tourism, and cultural commodification, the entry tax serves as a mechanism to regulate tourist influx while funding essential conservation projects. By discouraging mass tourism and promoting responsible travel practices, Bali aims to strike a balance between economic development and ecological integrity.

 

Impact and Future Outlook:

The introduction of the entry tax signifies a paradigm shift in Bali's tourism management approach, reflecting a broader global trend towards sustainable tourism. While some may view the fee as an additional expense, proponents argue that it is a small price to pay for the preservation of Bali's natural wonders and cultural heritage. Moving forward, stakeholders will closely monitor the impact of this policy on tourist arrivals, revenue generation, and conservation outcomes, with the ultimate goal of ensuring the long-term sustainability and resilience of Bali's tourism industry.

 

To sum up, as Bali adapts to the evolving dynamics of the tourism sector, the implementation of an entry tax for foreign tourists underscores the province's commitment to environmental conservation and cultural preservation. By leveraging tourism revenue to support conservation efforts, Bali aims to forge a path toward sustainable development while maintaining its status as a premier travel destination. As visitors embark on their journeys to the island of gods, they are not only welcomed with open arms but also encouraged to contribute to the preservation of Bali's unparalleled beauty and heritage for generations to come.