Skip to Content

Locals Worry New Second Home Visa In Bali Will Lead To Overdevelopment

Share The Article

It has been just a week since Indonesia announced the impending launch of the second home visa. The visa entitles those with over $130,000 in the bank to apply for a 5 or 10-year temporary residency. Yet there are already concerns being raised by local people in Bali and by government ministers that the new visa category will lead to an ‘invasion’ of investment leading to an over-saturation of the market. 

Hotel Complex In Bali Overlooks Beach And Ocean

The concerns have been quashed by Minister of Law and Human Rights of the Republic of Indonesia Yasonnah Laoly, who denied the suggestion that there would be an ‘invasion’ of newcomers to areas like Bali.

There are fears from local people that the new visa will allow people to come, invest, overdevelop and leave when the market has become too busy, whether that be the property market, the hospitality industry, or any other business. 

Construction Of New Apartment Buildings

Laoly told reporters at the opening of the Synergy and Collaboration for Optimizing Intellectual Property Ecosystem conference in Kuta on Monday 31st October, that the influx of forging investment, especially from China, won’t be an issue. He said, ‘there are critics saying, well we’ll be raided later by China and others. Malaysia was already ahead of us, the name was silver hair visa, it wasn’t invaded. We have Bali, we have other areas because they have to invest here’. 

The second home visa, along with the implementation of the Omnibus Law in 2020, now makes it easier than ever for investors, businesses, and entrepreneurs to establish a presence in Bali. The policy was considered contentious by some as it removed much of the legislation to protect Indonesian interests when it comes to buying and selling land. The policy allows foreigners to buy both land and apartments and gives them permanent ownership and the right to resell. 

Top 5 Travel Insurance Plans For 2023 Starting At $10 Per Week

Easily Earn Points For Free Travel

Modern Villa With Pool And Grass Garden

There are hopes that the new second home visa will attract a wide range of people, not simply business developers and investment tycoons. The visa is available to anyone who can show proof of funds in their bank account of USD 130,000.

The Department of Immigration has stated that this will help diversify the range of people who can come and reside in Indonesia. The visa targets high earners, retirees, and highly skilled digital nomads to invest in building a life in Indonesia. 

Traditional Style Shala And Swimming Pool At Villa

Laoly was steadfast that the new visa category would help increase economic growth and employment opportunities across Indonesia. He said, ‘Yesterday there were several expert doctors, Indonesian citizens who have retired from America and bought a house here, of course [buying] an apartment, of course, he needs a driver, he needs a helper’.

Yet, many people in Indonesia are concerned that the role of ‘helper’ is not the type of job opportunity that should be prioritized by the government as it looks to create new jobs. 

Luxury-Tradtional-Villa-Home-In-Bali-With-Swimming-Pool

Many people in Indonesia, especially those with strong academic backgrounds, wish to pursue roles with a greater scope for growth and development. While the second home visa will undoubtedly create jobs in the service industries, some argue that it is condescending to the Indonesian workforce.

They argue that in a post-pandemic world, there needs to be new jobs that are not directly linked to the servitude of foreigners, as is so commonly the case in Bali. Though many in Bali are happy and grateful to be able to work in tourism, others wish to have more career choices.

Luxury-New-Villa-in-Bali-With-Tropical-Garden-Swimming-Pool-and-Sunbathing-Deck

Laoly further defended the second home visa as an opportunity for those who have forfeited their Indonesian citizenship in favor of stronger international passports due to work, family, or relationships and those who were born into the Indonesian diaspora. He stated that the second home visa is a way for this community to rekindle a relationship with their familial country. Though the $130,000 may be limiting for many

Newly-Built-Luxury-Villa-House-Homes-Next-To-Rice-Field-In-Canggu-Bali

In Minister Laoly’s eyes ‘if diaspora residents retire and become Indonesian citizens, they cannot get social security. So with a second home visa, they can come to Indonesia and buy an apartment house and can stay in Indonesia for 5 or 10 years’. 

While the announcement of the second home visa was generally well received, it seems clear that the concerns around the future of the economic and physical landscape of Bali will be heavily impacted by the decision. Whether the second home visa and the omnibus law have a positive effect in the long run remains to be seen, both decisions certainly align with the government’s growth plan. 

Remove All Ads & Unlock All Articles… Sign up for The Bali Sun Premium

Plan Your Bali Holiday:
Book The Best English Speaking Drivers For Airport Transfers & Tours
Choose From Thousands of Bali Hotels, Resorts, and Hostels with Free Cancellation On Most PropertiesBook Cheap Flights To Bali
Don’t Forget Travel Insurance That Covers Medical Expenses In Bali


For the latest Bali News & Debate Join our Facebook Community

SUBSCRIBE TO NEW POSTS

Enter your email address to subscribe to The Bali Sun’s latest breaking news, straight to your inbox.

Sore Brain Stressing.

Tuesday 15th of November 2022

What happens to all the locals who work for all the existing expats on retirement visa, when this stupid long stay visa is implemented. The majority of retiree's don't have a lazy $130,000 to donate to a Indo Bank for 10 years, so will be forced to leave Bali to live in other parts of South East Asia. I see 1000's of locals loosing their employment if this visa is implemented. Also this idea of buying a luxury villa. What if you are happy living in Sanur or Seminyak which is more suited for retires. I doubt there will be many luxury villas for sale in Seminyak or Sanur. Why would you want to have to go live out in Cangu, it's already over crowded, noisy and traffic is a nightmare but the only place where I see luxury villa's for sale. This visa for retires makes absolutely no sense. But then again that's what we call Indo logic. Leaving people scratching thier heads thinking WTF..

Raymond

Saturday 19th of November 2022

@Sore Brain Stressing.,

Lorenco

Friday 4th of November 2022

Y are not aware. I live for 10 years, been in all major islands. I can write a book on the horror stories of expats in Indonesia. I h seen aussie and Americans crying because they bought a property in Bali and Lombok. If you enter this pit, do not buy, marry, have kids for 5 years, meanwhile invest only 10% of your capital, because y are loosing it, 99.99%.

Exp

Saturday 5th of November 2022

@Lorenco, Indeed a sage advice. Diversify. Do not put all eggs in an Indo basket. Be realistic: Do not believe in the "Eat, Pray, Love" movie hype. You will then be fine in Bali.

Mark Thomas

Thursday 3rd of November 2022

My wife ( Indonesian) I am Australian have just tried to settle back into Bali. We lived and worked in two other countries for 7 years( China and Singapore) As a married couple we were happily accepted in those countries Visas no problem with all documentation. Since we have been back we have had endless issues with Indo Immigrasi closing our Spouse Visa C317. 5 months still waiting while they have my passport. ( entrapped) We thought fingerprints and photo first few weeks and Passport back all finalised, but no such luck. Their instructions > No sorry wife has to change/update her ID card which she has had for 20 years. Register your marriage with the Indonesian Embassy in Australia. Translate all your documents please. My wife ( Indonesian) went to Jakarta through multiple agents and left in distress after one week trying to navigate some of these places. Where are we know? No passport no resolution and yet govt ministers are throwing out pie in the sky new visa initiatives on top of the minefield they already have. The mind boggles…

Exp

Friday 4th of November 2022

@Mark Thomas, Yes you and your wife needs to get all paperwork in order exactly as per regulations. 1. Looks like your wife should have an updated and valid KTP and KK in Indonesia. Can be from home town. 2. You will then be able to register the marriage as you mention. It is not required with translation if already in English as per imigrasi own web page, see below.

Refer to imigrasi.go.id/en/visa-tinggal-terbatas-penyatuan-keluarga-c317/

Mark T

Thursday 3rd of November 2022

My wife ( Indonesian) I am Australian have just tried to settle back into Bali. We lived and worked in two other countries for 7 years( China and Singapore) As a married couple we were happily accepted in those countries Visas no problem with all documentation. Since we have been back we have had endless issues with Indo Immigrasi closing our Spouse Visa C317. 5 months still waiting while they have my passport. ( entrapped) We thought fingerprints and photo first few weeks and Passport back all finalised, but no such luck. Their instructions > No sorry wife has to change/update her ID card which she has had for 20 years. Register your marriage with the Indonesian Embassy in Australia. Translate all your documents please. My wife ( Indonesian) went to Jakarta through multiple agents and left in distress after one week trying to navigate some of these places. Where are we know? No passport no resolution and yet govt ministers are throwing out pie in the sky new visa initiatives on top of the minefield they already have. The mind boggles...

Randy

Friday 4th of November 2022

@Mark T, Register your marriage with the Indonesian Embassy in Australia. Have you both done that? A first story that I have heard among mixed marriages. Sigh

Wayan Bo

Thursday 3rd of November 2022

A new nickname for such visa is Kerobokan visa.