Indonesia Second Home Programme - All Retirement Stay Permits Abolished and Existing Holders Scheduled for Expulsion in Case of Non-Compliance

[centurion]

Today Indonesia Second Home program (visa and ITAS) was introduced.

The consequence is that all existing retirement stay permits (ITAS, ITAP) will have 30 - 90 days to register through the Indonesia Second Home Visa program-meaning they have to keep a permanent deposit in the Government Bank in the amount of 2.000.000.000 Rp during all their stay.

This effectively means that almost all retirees will be expelled, as no sane retiree keeps such money as a fixed deposit here, or has no such money at all.

Basically, few people will apply for this scheme anyway, and retirees spending all their pensions here and fueling the local economy will disappear, with their money. The result will be net-negative.

This is called "the law of unintended consequences"

Unintended consequences - Wikipedia

en.wikipedia.org

 

[centurion]

The regulation in Bahasa Indonesia.

 

[R Cameron]

Incredible. The amount extremely high, and can't be used for local investment (outside of the very limited 'properti mewah' options).

But I am even more shocked they are applying the monetary requirements to all existing retirement visa holders, even those on 2nd ITAP "masa berlaku tidak terbatas".

The funds can also be owned by the sponsor, so perhaps a few of the larger agencies will get those funds in an account and sponsor hundreds of retirees using a single account balance.

 

[centurion]

The corporate sponsor can submit its proof of funds only for the visa issuance, however, for the ITAS the money deposited and blocked is clearly, from the text, from the prospective visa holder, and not from the corporate sponsor.

Nice Christmas gift from the Indonesian Government, the end of already issued stay permits falls around Christmas-New Year, a pricey time for flying home or for a visa run.

Also, mentioned landed property from the regulation is the one that is owned by a foreigner, land with property on it, as we know this property exists in Unicornia now (art I.8)

 

[pantaiema]

It might be another corrupt politician's colluding with bankers to issue this circular letter. They might collude with particular banks. They did it during COVID-19 with the Indonesian hotels for quarantine hotel arrangements, COVID-19 testing.
Does anyone ever want to let Rp 2.000.000.000 be kept for 5-10 years?? Just hope, when you want to take out your money, it will still be there?
The problem here is that it is already like a culture. They consider the people money like their own money.
Just remember the Menara Jamsostek, Jiwasraya, ASABRI examples. The most extreme case is ASABRI as this is the Indonesian army welfare and pension fund. They still have a courage to steal it.

 

[fastpitch17]

Oh, oh. Mad rush for pensioners to marry their houskeepers. One thing is always a constant here. Pit some big plan in place and then think about it.

 

[centurion]

Oh, oh. Mad rush for pensioners to marry their houskeepers. One thing is always a constant here. Pit some big plan in place and then think about it.

Housekeepers are not cheap for a contract marriage, in Bali, they are north of 4 - 5 million per month, and they are your inheritor on top of it.

 

[centurion]

It might be another corrupt politician's colluding with bankers to issue this circulation letter. They might collude with particular banks. They did it during COVID-19 with the Indonesian hotels for quarantine hotel arrangements, COVID-19 testing.
Does anyone ever want to let Rp 2.000.000.000 be kept for 5-10 years?? Just hope, when you want to take out your money, it will still be there?
The problem here is that it is already like a culture. They consider the people money like their own money.
Just remember the Menara Jamsostek, Jiwasraya, ASABRI examples. The most extreme case is ASABRI as this is the Indonesian army welfare and pension fund. They still have a courage to steal it.

Government and banks will not engage in such behavior, especially on a systematic basis. Many things in Indonesia are on the wrong footing, but the banking system is still sound. So that option will likely not exist.

For Indonesian government officials, a couple of billion is no money, as they never made money in competitive work or business environment, and they sincerely believe that any foreigner should have it (similar to a mobile phone for example).

 

[Balifrog]

This effectively means that almost all retirees will be expelled

I doubt that VERY much.
We're speaking a few 10's of thousand people here.....
Not gonna happen.

 

[centurion]

I doubt that VERY much.
We're speaking a few 10's of thousand people here.....
Not gonna happen.

The regulation is out and attached to this post, better start packing or preparing the money. The exit date is exactly before the New Year, meaning to book the ticket on time for home.

The government is already promoting their "second home visa" in Bali and Lombok, I think they are convinced that their new ideas are very good.

The alternative is to start complaining loudly as soon as possible, that could maybe work,

 

[Balifrog]

The regulation is out and attached to this post, better start packing or preparing the money. The exit date is exactly before the New Year, meaning to book the ticket on time for home.

The government is already promoting their "second home visa" in Bali and Lombok, I think they are convinced that their new ideas are very good.

The alternative is to start complaining loudly as soon as possible, that could maybe work,

Spreading panic.....
Up2u

 

[snpark]

Or just make a small PT and make yourself a director and give yourself a kitas every year

Or am I missing something? Age restriction?

 

[centurion]

Or just make a small PT and make yourself a director and give yourself a kitas every year

Or am I missing something? Age restriction?

Costs, administration, corporate structure, compliance, taxation...retirement ITAS is 8-10 jt/year, and the work permit scheme would be 3-4 times per year. Suitable for a younger people maybe, but someone 75-80 years old wants just relaxed and peaceful life.

 

[centurion]

For disbelievers as @Balifrog , the full text of the regulation starts to pop out on official immigration websites:

https://kanimbatam.kemenkumham.go.id/preview_file/2292-1666745318/Surat_Edaran_Nomor_IMI-0740_GR_01_01_Tahun_2022pdf

https://kanimbatam.kemenkumham.go.id/produk-hukum/produk-hukum-surat-edaran/direktur-jendral-imigrasi

 

[Ruserious]

Sounds badly implemented and thought out again.

So does this also put an end to all this digital nomad visa discussion?

 

[centurion]

Nomads can use the B211 visa or this Second Home program.

For the second one, the procedure is simple: you go to the website, upload your photo and your passport and pay 2.000.000.000 and the papers are out.

 

[snpark]

Or give your 2b rp to your local trusty agent to do it for you

 

[pantaiema]

Nomads can use the B211 visa or this Second Home program.

For the second one, the procedure is simple: you go to the website, upload your photo and your passport and pay 2.000.000.000 and the papers are out.

Like I mentioned before. In Indonesia it is already like embedded in a culture. They consider the people money like their own money. It was like the money they think they inherited from their ancestors, from their "engkong". So who here dares to let their hard earning cash of Rp. 2.000.000.000 to be kept by system for 5-10 years?

Just remember the Menara Jamsostek, Jiwasraya, ASABRI for examples. ASABRI is a very extreme case that ever exist on this world as ASABRI is the Indonesian Army and police welfare and pension fund. They still have the courage to steal it. Could you believe that ??

In the past: Bank Bali, Bank Mandiri predecessor e.g Bapindo (Eddy Tansil Case), BNI 46 (Maria Lumowa Case), Bank Century, Other BLBI cases, etc.

When come to Bank's embezzlement and corruption I do not think other countries on this planet earth could match Indonesia. So when it is said the banks will not engage in such behaviour ? The above examples are facts, an eye opener. Most (if not all) of the above mentioned cases involved some degrees of high rank bank officials.

I know it is getting better but a culture could not be changed in a short duration of time. Let alone the regime change all the time.
Am I the only one in this forum to think that this circulation letter is motivated by making money available in the system that could be stolen / corrupted at some point in the future ?

 

[MamangDudul]

That's why most of the time I don't like visiting this site here, have there ever been any good news for expats in recent years?

I mean, it is not my problem YET. But who knows what plans they have for other visa types, like spouse sponsored visas, in the future.
I still feel sorry for everyone who gets hit by this.

 

[centurion]

It is wrong on many levels. The government of Indonesia issues residence permits (ITAS/ITAP)to retirees, based on certain criteria, and retirement stay permits are defined by Law on Immigration.

And now, by Surat Edaran (Circular Letter), a legal document of lower rank than law or government regulation, rights from the Law are derogated and simply abolished. Present permit holders even have no right even to finish the term stated in their documents, approved by the Government. This can jeopardize the government's credibility.

And on top of it, all these retirees that stayed in Bali helped the local economy survive during the pandemic. A nice reward they got.