After more than a year of deliberation, the Indonesian government has announced that remote workers will be allowed to work online for up to six months without paying taxes by using the existing B211A visa.
The original government idea for a longer-term digital nomad visa — maybe up to five years — is still being debated.
The goal is to attract more overseas freelance and remote employees to the region by developing a concrete legal framework that provides certainty for both remote workers and the companies that employ them.
Indonesia is not the only country considering such a measure. According to a new analysis by the Migration Policy Institute, more than 30 nations and territories have now introduced visas for digital nomads.
Bali, however, has some distinct advantages that could help it compete on a global scale.
The majority of other digital nomads are only in the nation on 30-day tourist visas, and if they wanted to stay, they normally had to leave and return every month.
Others have visas that limit their ability to work or state that all money, including that earned abroad, is subject to Indonesian taxation.
Bali’s economy will benefit from the move that will make it easier for visitors to set up and conduct business from Indonesia. According to Tourism Minister Sandiaga Uno, and 4.4 million new jobs will be created in Indonesia by 2024.
“I am increasingly convinced that the number of foreign tourists who are interested in staying in Indonesia will increase, and will automatically have an impact on economic revival,” he says.
More than 3,000 foreigners have used the B211A visa to work as digital nomads since January this year.
The main countries of origin are Russia, the United Kingdom and Germany, but Mr. Uno says Indonesia intends to promote the new system in other countries such as Australia, Malaysia and Singapore.
There are separate ideas for a longer-term second home visa that would allow older expats to live in Indonesia.
However, not everyone is happy. Other Balinese citizens, especially hotel owners in Canggu, have been vocal in their opposition to the digital nomad invasion.
More than 8,000 people recently signed a petition protesting the excessive noise and rude behavior associated with the expansion of nightclubs and beach clubs, which cater mainly to foreigners.
