Indonesia Second Home Visa: 10-Year Residency for Investors and Retirees
Indonesia — the world's fourth most populous country and Southeast Asia's largest economy — launched its Second Home Visa (SHV) in October 2022, marking a significant shift in the country's approach to long-term foreign residents. For decades, Indonesia was notable among Southeast Asian nations for the limited long-term options available to foreign nationals who were not employed locally or married to Indonesians. The SHV changes that picture substantially.
Under the Second Home Visa, foreign nationals can now obtain a renewable 5- or 10-year residency permit in exchange for either a fixed bank deposit held in Indonesia or ownership of qualifying Indonesian property. It is aimed explicitly at retirees, remote workers, investors, and internationally mobile individuals who wish to spend extended periods in Indonesia without engaging in formal employment.
What the Second Home Visa Offers
The Second Home Visa provides:
- 5-year permit: single entry, renewable
- 10-year permit: multi-entry, renewable
- Right to reside in Indonesia for the permit duration
- No work rights for Indonesian employers (the visa does not permit local employment)
- Family inclusion: spouses and children may be included as dependants on the same visa
- Multiple re-entry: particularly on the 10-year variant
The SHV does not grant permanent residence or provide a pathway to Indonesian citizenship (Indonesia prohibits dual nationality and naturalisation requirements are stringent). It is a lifestyle and investment-focused permit, not a citizenship programme.
Eligibility and Financial Requirements
Applicants must meet one of the following qualifying conditions:
Option 1: Bank Deposit
Applicants must maintain a fixed or savings deposit in a state-owned Indonesian bank (typically Bank Mandiri, BNI, BRI, or BTN) of at least IDR 2 billion — approximately USD 125,000–135,000 at mid-2026 exchange rates.
The deposit must be maintained throughout the permit duration. Upon cancellation of the visa, the deposit is refunded (it is held, not spent). The deposit earns Indonesian interest rates, which are typically higher than equivalent European rates — around 4–6% per annum for IDR time deposits as of 2026.
Option 2: Property Ownership
Applicants who own qualifying Indonesian property may use property ownership in lieu of a bank deposit. The property route carries a substantially higher value threshold than the deposit route — a minimum property value of USD 1,000,000, held under a permissible foreign ownership structure (typically Hak Pakai, or via a PT PMA holding Hak Guna Bangunan). Note that Indonesian property law significantly restricts foreign ownership of freehold land (see section below on property rights).
Additional Requirements
- Valid passport with at least 36 months remaining validity
- Proof of health insurance
- Clean criminal record
- Proof of financial capacity (bank statements, investment evidence)
- No outstanding Indonesian immigration violations
Property Ownership Restrictions for Foreigners
Indonesia's property ownership laws are among the most restrictive in Southeast Asia. Foreign nationals cannot hold freehold (Hak Milik) land or residential property in Indonesia. The permissible ownership structures for foreigners include:
- Hak Pakai (Right of Use): an initial term of 30 years, extendable by 20 years and renewable for a further 30 years (up to 80 years in total, under PP 18/2021). Applies to residential property for foreign holders of a valid stay permit such as KITAS (temporary residence permit) or KITAP (permanent residence permit). The SHV qualifies for this structure
- Hak Guna Bangunan (Right to Build): 30 years, extendable. Typically used for commercial property via a local entity
- Leasehold: long leases (25–30 years with extension options) are the practical mechanism most commonly used by foreigners in Bali and other tourist markets
The SHV does not change the underlying property law — foreigners still cannot own land freehold. The minimum property value used for SHV qualification refers to property held under a permissible foreign ownership structure, not freehold land.
Nominees (using an Indonesian national to hold title on behalf of a foreigner) are technically prohibited under Indonesian law and carry legal and practical risk. Foreign investors should work with qualified Indonesian notaries and legal advisers who can structure ownership correctly.
Despite these restrictions, the Indonesian property market — particularly in Bali, Jakarta, Lombok, and the Labuan Bajo/Flores corridor — has attracted significant foreign capital, primarily through leasehold and Hak Pakai structures.
Key Destinations for Second Home Visa Holders
Bali
Bali remains Southeast Asia's most internationally recognised lifestyle destination. The SHV has created a wave of long-term international residents, particularly in Canggu, Seminyak, Ubud, and the Bukit Peninsula. The rental and villa market is robust, with strong short-let yields from international tourism. Bali has well-established international schools, private hospitals, coworking infrastructure, and expatriate community networks.
Jakarta
Indonesia's capital and primary business hub. Less popular as a lifestyle destination but relevant for those managing Indonesian business interests or regional investments. International-standard healthcare, schools, and residential compounds.
Lombok and the Gili Islands
A quieter, lower-cost alternative to Bali with a growing premium tourism and residential sector. Development in Mandalika (Lombok's Special Economic Zone, home to the MotoGP circuit) is driving investment interest.
Tax Considerations
Indonesia's tax system is relevant to SHV holders who spend significant time in the country.
Tax residency in Indonesia is triggered for those who are present in Indonesia for more than 183 days in a 12-month period (any 12-month window, not just the calendar year). Indonesian tax residents are subject to income tax on worldwide income at progressive rates up to 35%.
For SHV holders who wish to avoid Indonesian tax residency, managing their time in Indonesia to below 183 days is essential. The SHV itself (like all Indonesian long-stay permits) does not automatically create tax residency — it is the physical presence that matters.
Indonesia has a growing double tax treaty network, including treaties with the UK, Singapore, Japan, Germany, and approximately 70 other countries.
Land and Building Tax (PBB): modest annual property tax on Indonesian real estate, well below comparable European rates.
Comparison with Other Southeast Asian Long-Stay Visas
| Country | Programme | Min. Investment | Max. Duration | Pathway to PR/Citizenship |
|---|---|---|---|---|
| Indonesia | Second Home Visa | USD ~130,000 (deposit) | 10 years (renewable) | No |
| Thailand | LTR Visa (Wealthy Global Citizen) | USD 500,000 Thai investment (USD 1m net worth) | 10 years (renewable) | No |
| Malaysia | MM2H | MYR 1m deposit (Peninsular) | 5–10 years | No |
| Philippines | SRRV | USD 10,000–75,000 (deposit) | Indefinite | No |
Indonesia's SHV is competitively positioned relative to Thailand's Long-Term Resident Visa and Malaysia's MM2H programme, particularly given the lower minimum deposit and the 10-year renewable duration.
Honest Assessment
The Second Home Visa is a genuine and welcome development for those who have long wished to spend extended time in Indonesia. The USD 130,000 deposit requirement is accessible for the target market, and the 10-year renewable duration provides meaningful stability.
Limitations are real: no pathway to permanent residency or citizenship; no work rights; property ownership remains structurally complex; and Indonesia's infrastructure outside major urban and tourist centres remains uneven. The SHV also places you in a country with one of the world's most complex regulatory environments — Indonesian bureaucracy, while improving, requires patience and good local advisers.
For the right individual — a retiree seeking long-term Bali residence, a remote worker drawn to Indonesia's culture and cost of living, or an investor building a Bali property portfolio — the Second Home Visa is a credible and affordable option.
Key Facts at a Glance
| Feature | Detail |
|---|---|
| Visa type | Second Home Visa (SHV) |
| Bank deposit required | IDR 2 billion (~USD 130,000) |
| Property route minimum | USD 1,000,000 (qualifying property) |
| Permit duration | 5 or 10 years (renewable) |
| Work rights | Not permitted |
| Family inclusion | Yes (spouse + dependent children) |
| Pathway to permanent residency | No |
| Pathway to citizenship | No |
| Tax residency trigger | 183+ days in any 12-month period |
| Freehold property ownership | Not available to foreigners |
How Global Investments Can Help
Global Investments has over 32 years of experience advising internationally mobile individuals on residency planning, property investment, and cross-border wealth structuring in Southeast Asia. We can assess whether the Indonesia Second Home Visa fits your lifestyle and investment goals, help structure property investments correctly under Indonesian law, and connect you with qualified Indonesian notaries, immigration lawyers, and property advisers in Bali and Jakarta.
Contact us to discuss your goals in confidence.
This page is for general information only and does not constitute legal, tax, or immigration advice. Indonesian immigration regulations and financial thresholds are subject to change. Exchange rate figures are approximate. Always consult a qualified Indonesian immigration lawyer and tax adviser before making any decisions. Investments carry risk; values can fall as well as rise.
This guide is for general information only and does not constitute legal, financial or immigration advice. Programme details, investment thresholds, and eligibility requirements change; always verify current requirements with a qualified immigration lawyer and financial adviser before making any investment or application. Investment values can fall as well as rise.