Every Monday morning, Indonesia's Minister of Tourism
and Creative Economy, Sandiaga Uno, holds a press conference. Last week,
Minister Uno revealed his tourist goals for the rest of the year, emphasizing
the importance of increased flight accessibility in meeting the demand for Bali
travel during peak season.
During this week's press conference on Monday, June
27th, Minister Uno said that the much-anticipated Indonesian Digital Nomad Visa
is nearing completion and would soon be opened for applicants.
For years, there have been ideas for an Indonesian
digital nomad visa. If not for the Covid-19 outbreak and accompanying global
lockdowns, the visa scheme could have been operational by now. The visa would
allow hundreds of thousands of digital nomads and remote employees to call Bali
home and live there as temporary residents.
Minister Uno stated at a news conference,
"Discussions regarding visas for digital nomads have reached the last
stage, and we will proceed to collaborate with key ministries and
agencies." We hope that this will be one of the regulatory breakthroughs.'
Minster Uno's mention of legislation may be a subtle
nod to Indonesia's Head of the Bali Regional Tourism Promotion Board, Prof.
Tjokorda Oka Artha Ardhana Sukawati, who recommended last week that the central
government must 'give the correct medicine' to the Bali tourism sector for it
to bounce back. He expressly stated that this "medicine" must take
the form of increased flights as well as policy and regulatory improvements.
The digital nomad visa is expected to allow foreign
remote workers to stay in Bali for up to five years. This is good for digital
nomads who want to travel and remote workers who wish to construct a long-term
home base from which to work.
The visa is intended to give remote employees the
ability to work online and generate international revenue without having to pay
taxes in Indonesia. This digital nomad visa will assist many digital nomads who
are now residing in Bali on tourism or social visas, or the D212 Multiple Entry
Visitor Visa, to navigate a challenging grey area.
The Indonesian government has not disclosed
eligibility requirements or which nations will be allowed to apply for the
visa. There has also been no public discussion of whether the visa will permit
numerous entries or if the visa must be applied for outside of Indonesia. It is
uncertain whether digital nomad visa holders would be allowed to conduct some
economic activities within Indonesia.
People who travel to Indonesia to start a business or
work for an Indonesian-based organization are currently required to get a KITAS
permit. People who come to Indonesia for business purposes, such as organizing
exports, attending events, and providing training, but are working elsewhere,
can do so on the D212 visa.
Processing timelines and qualifying requirements will
almost certainly be disclosed when the digital nomad visa is introduced.
Minister Uno did not provide a specific date for the debut of the new visa, but
tourists can take heart in the fact that the procedure is nearing completion.
In prior press conferences, Minister Uno could only confirm that his department
is investigating the scheme's sustainability.
Although digital nomads and remote employees on the
visa are not obligated to pay taxation, the Ministry of Tourism hopes that the
flood of temporary residents would benefit the economic growth. All digital
nomad expenditure, whether in the form of rental houses, office rentals, or
profits for cafes, as well as leisure activities, will potentially generate
more secure jobs for locals.