Reported by Minh Hieu

Indonesia aims to attract wealthy investors with its new golden visa program, but analysts have warned that the policy could invite cross-border money laundering and drive up housing prices.

The visa scheme was launched last Thursday, making it easier for foreign nationals to invest and contribute their wealth, skills, or expertise to Southeast Asia’s largest economy, Nikkei Asia reported.

Individual investors must establish a company valued at US$2.5 million to obtain a five-year visa or $5 million for a ten-year one.

Alternatively, they can secure a 5-year or 10-year permit by placing funds of at least $350,000 and $700,000, respectively. The money can be placed in deposits or used to purchase Indonesian government bonds and public company stocks.

Another category of golden visa allows individuals to stay for five years by making a deposit of $130,000 in a government-owned bank and buying an apartment valued at $1 million or above.

For corporate investors, a $25 million investment is required to secure five-year visas, and a $50 million investment is needed for ten-year visas, applicable to their directors and commissioners.

The program would have a multiplier effect on the country, enhancing capital gains, job creation, and technology transfer, Asia News Network quoted Indonesian President Joko Widodo as saying last Thursday.

Since launching the pilot program for the permits last year, Indonesia has issued nearly 300 golden visas, gaining $123 million in investments.

Nonetheless, experts have raised concerns over potential threats of cross-border money laundering and other criminal activities, as well as housing price inflation.

Read full report: https://e.vnexpress.net/news/business/economy/indonesia-s-golden-visa-attracts-wealthy-investors-raises-concerns-over-money-laundering-housing-costs-4776260.html