Indonesia is making waves in the travel industry with its plans to review its tourist visa-on-arrival policy, pre-investment, and investment visa policies. The government, led by Minister of Tourism and Creative Economies Sandiaga Uno and Minister of Law and Human Rights Supratman Andi Agtas, is taking a firm stance against what it perceives as misuse of these visas by foreign travelers.
The concern stems from the observation that many international visitors are using these visas to extend their stays in Indonesia beyond the intended purpose of tourism. One common practice is the use of ‘visa runs,’ where visitors temporarily leave the country, often to nearby destinations like Bangkok, Singapore, or Kuala Lumpur, and then return to receive another 30 to 60 days on their visa. This practice, popular among digital nomads and long-term tourists, allows extended stays without the need for proper long-term visas.
These policy changes have the potential to significantly impact the tourism industry in Indonesia, especially in popular destinations like Bali, which has become a hub for digital nomads and their contributions to the local economy. Stricter visa regulations may discourage some long-term visitors, potentially affecting co-working spaces, rental markets, and tourism services catering to this demographic. However, it could also encourage travelers to explore long-stay socio-cultural visas or digital nomad visas, which are better suited for those seeking extended stays without breaching visa terms. This shift could lead to a more sustainable form of long-term tourism, benefiting both visitors and the local economy.
The government is also concerned about foreign visitors utilizing pre-investment and investment visas for activities that violate the terms of these visas. These visas are meant to support international investors by allowing them to stay in the country for up to 12 months to engage in activities such as market research and investment setup. However, reports suggest that some internationals are using these visas to engage in income-generating activities without proper permits, violating Indonesian law. For example, a recent immigration crackdown in Bali caught a Romanian national working as a dive instructor on a visa-on-arrival. Similar instances include internationals offering services like yoga classes, wellness retreats, and photography without the necessary business permits or appropriate visas. This type of visa misuse poses a challenge for Indonesia, as it threatens to harm the local economy by allowing foreign nationals to operate businesses without adhering to local laws and regulations.
The proposed visa changes in Indonesia are part of a broader trend in tourism where countries are re-evaluating how they handle long-term visitors and digital nomads. As remote work opportunities become more prevalent in exotic destinations, governments are being forced to create visa programs that accommodate long-term stays while ensuring these visitors contribute positively to the local economy. Indonesia’s review of its visa policies could influence other Southeast Asian countries facing similar challenges with digital nomads and long-term travelers. Countries like Thailand and Malaysia may closely monitor how Indonesia’s reforms affect the travel market. This could lead to a regional shift in how visas are issued and managed for long-term tourists, with a greater emphasis on clear visa categories and regulation of income-generating activities.
For international travelers, the changes in Indonesia may prompt greater awareness of visa requirements and a more structured approach to long-term travel. Travelers who rely on visa-on-arrival policies may need to reconsider their plans and explore alternative visa options that align better with their travel intentions.
The review of Indonesia’s visa policies is likely to have a profound impact on the country’s tourism industry. While the reforms aim to address issues of visa misuse, they could also help Indonesia attract a more sustainable type of long-term traveler, one that complies with local laws and regulations. By offering clearer visa pathways for digital nomads, investors, and tourists, Indonesia can strengthen its tourism sector and foster a more transparent relationship with international visitors. This, in turn, could lead to greater investment in local businesses, more opportunities for local workers, and a more regulated travel industry that benefits everyone involved.
As October approaches, and with potential changes to the visa-on-arrival policy, both travelers and businesses in Indonesia need to stay informed of new regulations. For the global travel industry, Indonesia’s move represents a critical moment in the evolution of long-term tourism and visa management, one that could set the standard for other countries looking to balance tourism growth with economic protection.
