The latest regional competitor to Malaysia’s once-popular MM2H programme appears to be largely a straight-up ‘investment for residency’ offering.

Indonesia unveiled a long-term ‘pay to play’ visa scheme on Thursday (July 25) aimed at attracting foreign investors, President Joko Widodo announced. This initiative grants visas of up to 10 years for investments reaching US$10 million, facilitating both residency and access to Southeast Asia’s largest economy. The cost of entry, however, is substantial.

The five-year ‘Golden Visa’ requires individual investors to establish a company valued at US$2.5 million, while the 10-year visa demands a US$5 million investment. For those not looking to start a company, a US$350,000 investment secures a five-year permit, and US$700,000 is needed for a 10-year permit. These investments can be directed towards Indonesian government bonds, public company stocks, or deposits.

Corporate investors must contribute US$25 million to obtain five-year visas for their directors and commissioners, with a US$50 million investment required for a 10-year visa. Special incentives apply to investments in Indonesia’s new US$32 billion capital city being constructed in Borneo. A US$5 million investment provides a five-year visa, while US$10 million secures a 10-year visa.

Indonesia’s move mirrors similar investment visa schemes in other nations, though some countries like Canada, Britain, and Singapore have discontinued such programmes, citing concerns over job creation and speculative money parking.

President Joko Widodo, commonly known as Jokowi, stated the visa aims to attract ‘good quality travellers,’ a desire shared by Malaysia, but often criticized as simplistically – and at times erroneously – equating being wealthy with being of high quality.

“We’re launching the golden visa to make it easier for foreign nationals to invest and contribute in Indonesia,” Jokowi said.

Silmy Karim, chief of the immigration agency, revealed that Indonesia has granted golden visas to nearly 300 applicants since last year, generating US$123 million. Karim also mentioned plans to introduce a special status for foreign nationals of Indonesian descent, akin to India’s Overseas Citizenship of India (OCI) scheme. This status, potentially available by October, would allow such individuals to visit, work, and live in Indonesia indefinitely.

As ASEAN’s largest economy, Indonesia values foreign direct investment (FDI) and tourism revenue as crucial components of its economic growth. The country’s vast archipelago and huge population comprises diverse cultures, languages, and boasts plentiful natural resources, making it a significant player in the region.