Indonesia’s new visa policy

Context

As Indonesia deals with the economic impacts of Covid-19, the country has announced “Digital Nomad Visas” for travellers, to attract more foreign tourists. 

Who are digital nomads?

• Digital Nomads are people who work remotely while travelling to different places and spending their earned income in the country they are travelling to.
  
• Now as the world has moved towards getting vaccinated and international borders have opened up after Covid-19 pandemic, people can continue doing their regular jobs remotely from anywhere in the world.
• According to the 2020 State of Independence in America Report by MBO Partners, “Digital nomads are defined as people who choose to embrace a location-independent, technology-enabled lifestyle that allows them to travel and work remotely, anywhere in the Internet-connected world. 
• Unlike regular remote workers, who tend to stay in one geographic area, digital nomads travel and explore while working.”
• The study also found that 10.9 million American workers described themselves as digital nomads in 2020, which was an increase of 49 per cent from 2019.

What is the “Digital Nomad Visa” Indonesia has proposed?

• The Digital Nomad Visa would allow remote workers to stay in Indonesia, including Bali, tax-free.
• Announced by Indonesia’s Tourism Minister to boost tourism in the country, the visa will be applicable for five years. 
• This would make Indonesia’s visa one of the longest digital nomad visas compared to other countries.
• Through the visa, Indonesia aims to bring in over 3.6 million overseas travellers into the country over the next year to explore spiritual retreats as well as the eco-tourism of Indonesia.
• Under the visa, as long as the remote workers earn from companies outside Indonesia, they can live tax-free inside the country, including on islands like Bali.

What are some other countries that provide nomad visas?

• Italy in March, released a new permit for non-EU nationals, or digital nomads, who can stay in the country for up to 90 days without a visa.
• Antigua and Barbuda offer a digital nomad visa for two years where the travellers will be required to maintain their own health insurance.
• Barbados offers a year-long remote working visa which can be extended further.
• Other countries offering nomad visas are Croatia, Costa Rica, Georgia, Hungary, Iceland, Mauritius, Norway, and Spain among many others.