Indonesia will start offering a visa that will allow remote workers to live there tax-free for five years.
The condition is that their earnings must come from outside the country.
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Potential gains
Indonesia’s tourism minister Sandiago Uno announced the five-year “digital nomad visa” earlier this month.
They are trying to target 3 to 4 million [visitors] with longer length of stay and better-quality spending which would in turn create one million jobs for Indonesians.
Another potential benefit is to the tourism sector since the travelers get an opportunity to explore local places.
This could have a positive impact on the local economy.
Why this step?
The proposed remote working visa would bring in freelancers across the globe who can live on islands like Bali but only if they earn outside the country.
The proposal was made on the basis of research that showed Indonesia was “top of mind” for 95% of the remote workers that participated.
Similar plans for a digital nomad visa were in the works last year but had to be paused due to the Covid-19 pandemic.
Now with the pandemic handled and all the ministries getting involved and cooperating, Uno believes that this is an opportune time to relaunch this idea.
Removing Covid restrictions
The Indonesian government is looking to reinvigorate the local economy further by removing restrictions and adding more perks for travelers..
It has already lifted most of its travel restrictions and implemented a quarantine-free trial period and a Visa On Arrival (VOA) scheme for 72 nations, including India.
At present, there are a variety of visas available to remote workers visiting the country.
These include Visa on Arrival (VoA), Tourist of Cultural Visa and the country’s Free Visa.
However, these only last between 30 and 180 days.
How you can work in Indonesia
You will need an IMTA (Ijin Mempekerjakan Tenaga Kerja Asing), also known as an IKTA (Expatriate Work Permit).
This will be sponsored by the company you work for.
You will also need a residence permit.
The Kartu Izin Tinggal Terbatas (KITAS), or Temporary Stay Permit Card will also be sponsored by your employer.
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