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Indonesia Second Home Visa - Staying Longer with 'Freeway Benefits' in Indonesia & The New Form of Retirement Visa

10 July 2023
MCO News Network Team
Immigration, Foreign Clients
The Directorate General of Immigration, Ministry of Law and Human Rights of the Republic of Indonesia has recently enforced a new form of retirement visa for Foreign individuals who intend to stay longer in Indonesia with no purpose of employment. The newly enforced visa is called the Second Home Visa.
Indonesia Second Home Visa - Staying Longer with 'Freeway Benefits' in Indonesia & The New Form of Retirement Visa

Indonesia has introduced a new visa category for foreign nationals wishing to stay in the country for extended periods without the intent to work. The Second Home Visa (SHV), as regulated under SE Ditjenim No. IMI-0820.GR.01.01.Tahun 2022 and Regulation of Minister of Law and Human Rights of the Republic of Indonesia No. 11 of 2024, aims to provide long-term residency options for individuals aged 55 and older, as well as other foreigners looking to live in Indonesia for up to five years with the option for extension.


This visa replaces the previous Retirement Visa, offering more flexible benefits and a broader range of purposes for staying in the country, including opportunities for education, investment, and family reunification. The introduction of the SHV is part of Indonesia's broader effort to attract foreign nationals who can contribute to the economy while staying in the country for an extended period, without the intention of engaging in employment.



Key Benefits of the Second Home Visa

The Second Home Visa is designed to provide flexibility and ease of living for foreign nationals who wish to stay in Indonesia on a long-term basis. The following are key benefits for holders of the SHV:


  1. Eligibility for Various Activities

    The SHV allows foreigners to engage in a variety of activities, including:

    • Investment (subject to the relevant laws and regulations),

    • Tourism, and

    • Elderly/pensioner tourism, catering specifically to older foreigners who wish to reside in Indonesia.


  2. Family Reunification

    Foreign nationals holding the SHV can bring their dependents (children, spouse, or parents) under the same visa status, allowing family members to join and stay with the primary visa holder.


  3. Permanent Stay

    SHV holders are allowed to stay in Indonesia for the full validity of their visa, which is five years initially, with the option to extend up to a total of 10 years. Furthermore, holders who meet certain eligibility criteria can apply for Indonesian citizenship after fulfilling the necessary conditions.


  4. Access to Education

    Foreign nationals on the SHV are eligible to pursue education in Indonesia, either for themselves or for their dependents, within the framework of local educational regulations.


  5. No Employment Restrictions

    The SHV prohibits employment relationships, meaning that SHV holders are not permitted to work for a company or engage in paid labor while in Indonesia. However, the visa does allow for activities such as investment, business ownership, and tourism.



Period of Stay & Visa Validity

  • Initial Stay

    The first application for a Second Home Visa allows for a stay of 5 years, with the possibility of extension up to a total of 10 years. After the 10-year period, applicants may explore options to apply for a Permanent Stay Permit (KITAP) or convert the SHV to another type of visa, provided all legal conditions are met.


  • Visa Validity

    While the SHV allows for an initial stay of up to 5 years, the visa validity itself is limited to a 90-day window from the date of issuance. This means that the holder must enter Indonesia within 90 days of receiving the visa, though the actual stay may extend for the full 5 years once in-country.


  • Passport Requirements

    The length of stay granted through the SHV is subject to the validity of the foreigner's passport, meaning that the visa cannot exceed the expiration date of the passport. Applicants are required to have a passport that is valid for at least 36 months from the date of application.



General Requirements

To qualify for the Second Home Visa, applicants must meet the following requirements:


  1. Financial Sufficiency

    Applicants must demonstrate financial capacity to support their stay in Indonesia for the duration of the visa. Proof of sufficient funds is one of the main conditions of eligibility.


  2. No Employment

    The SHV strictly prohibits the holder from engaging in any form of employment or working under an employment relationship in Indonesia. This restriction ensures that the visa is only used for long-term stay, not for working purposes.


  3. Compliance with Visa Conditions

    SHV holders must comply with all applicable visa conditions and Indonesian laws during their stay. Non-compliance can result in fines, deportation, or other legal consequences.


  4. Option for Visa Conversion

    The Second Home Visa offers flexibility as it can be converted into other types of visas or stay permits, such as a Permanent Stay Permit (ITAP), after fulfilling the required conditions.


Document Requirements

Applicants for the Second Home Visa must submit the following documents to qualify:

  1. Valid Passport that remains valid for at least 36 months from the date of application.

  2. A recent passport-sized photo with a white background.

  3. A signed statement confirming the applicant’s intent to apply for and adhere to the conditions of the SHV.

  4. Applicants must provide proof of a personal bank account with a balance of at least IDR 2,000,000,000 (approximately USD 130,000). Alternatively, proof of property ownership (flats or apartment) in Indonesia worth at least USD 1,000,000 is also acceptable.

  5. If applying for dependents (such as children or parents), applicants must submit birth certificates or family cards proving the relationship. Documents must be translated into Indonesian, unless they are already in English.


Potential Consequences of Non-Compliance

It is critical for SHV holders to follow all visa conditions and Indonesian laws during their stay. Violations, such as staying beyond the authorized period, working in an employment relationship, or engaging in prohibited activities, can result in:

  • Fines

  • Deportation

  • Legal charges

  • Cancellation of visa status

These measures ensure that the Second Home Visa program remains a tool for long-term residents who respect Indonesia's laws and regulations.


Conclusion

The introduction of the Second Home Visa marks a significant step in Indonesia's efforts to attract long-term residents, retirees, investors, and their families to the country. Offering flexible stay options, benefits for dependents, and the possibility of transitioning to permanent residency, this visa represents a modern, attractive option for foreigners wishing to settle in Indonesia without engaging in employment. As with any visa or stay permit, it is crucial for applicants to comply with all the relevant conditions and legal requirements to fully benefit from the opportunities presented by the SHV.


The Second Home Visa is a promising initiative that not only supports the influx of long-term foreign residents but also aligns with Indonesia's broader economic and demographic objectives. By offering more flexible and extended stay options, Indonesia is positioned as an attractive destination for retirees, investors, and other foreign nationals looking for a safe, vibrant, and welcoming environment to live and work.

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Disclaimer: 

This insight does not constitute any legal advice.

This publication is provided for informational purposes only. Any use or reliance on material on this page shall be borne at each user’s risk.

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