Indonesian Legal and Immigration Consultants

Immigration Newsletter – March 2023 Pre-investment Visa Regime in Indonesia

Immigration update

In the past decades, Indonesia strives towards creating a conducive the investment climate within the
country. The attempts are varied from streamlining the investment licensing process, revisiting import
tariffs, to providing foreign investors with the ease to enter the country.
The enactment of the Law No. 6 of 2011 regarding Immigration (the “Immigration Law”) affirms the
Indonesian Government’s intention to further open the country to welcome foreign investment in
Indonesia. One of the recitals of the Immigration Law is quoted:
“Streamlining of the immigration procedures for foreign investors who intend to invest in Indonesia is
needed………. Ultimately, this shall lead to pleasant investment climate and such climate should lead
to foreign investors’ interest to invest in Indonesia.”
The Immigration Law has then been followed by the enactment of the Government Regulation No. 31
of 2013 regarding the Implementing Regulation of the Immigration Law which was lastly amended by
the Government Regulation No. 48 of 2021 (“GR 48/2021”) which was enacted on 2 February 2021.
Article 89 of GR 48/2021 provides that visit visa can be granted to the foreigners who will travel to
Indonesia for the purposes of, amongst others, governmental projects, education, social culture,
tourism, pre-investment, business, family, journalism, or transit.
Slightly less than 2 years from the enactment of GR 48/2021, Indonesian Government through its
Directorate General of Immigration has taken another big step to attract foreign investment by
launching the pre-investment visa application process with the aim of providing ease of entry to
Indonesia for investors to review potential investments before investing in Indonesia.



Under GR 48/2021, the scope of pre-investment activities includes the activities intended to start a business amongst others site survey and/or feasibility study; this shall include liaising activities with regulator such as the Investment Coordinating Board (BKPM) or local organizations such as public notary or law firms. In light of the defined scope of pre-investment activities under GR 48/2021, pre-investment visa will not allow profit making activities such as signing commercial contracts, negotiating commercial deals. This approach, in principle, show cases the alignment between the Directorate General of Immigration and BKPM in governing the investment procedures in Indonesia. Guarantor/monetary guarantee Although GR 48/2021 requires guarantor or monetary guarantee to be made available to the Directorate General of Immigration, the process of pre-investment visa application does not appear to require a guarantor or any form of monetary guarantee (save for multiple entries). The authority of the Directorate General of Immigration to require otherwise remains. Pre-investment visa allowing multiple entries may require guarantor or monetary guarantee to be placed. The process has yet to be tested. 


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