Shake up of Bali visa rules and $200,000 bond may see expat exodus

Expats in Indonesia and Bali could find their retirement plans affected by the Visa shake up. Photo / Steve Brookland, Getty Images

The Isle of the Gods has become a popular place for Australians and Kiwis to retire overseas. Now it could cost them $200,000.

Now, expatriates and retired foreign nationals in Bali are facing a fundamental change to visas that could see many of them leave.

Indonesia is revising its temporary stay visa for retirees - the KITAS - requiring elderly expatriates to prove they have either $200,000 in property or an Indonesian bank in order to stay in the country.

Many foreign nationals in Bali currently visiting on investment and retiree visas say they are in no position to pay.

Although this week officials in Bali have been trying to reassure tourists that a ban on extra-marital sex with not apply to international visitors, expats in Indonesia are worried about a shake up of visa laws.

“Of course very few people have these funds,” says Matt, a New Zealand expat who has lived in Bali for the past two decades.

He expects areas which have become popular with retirees such as Sanur will suffer, as foreign nationals make the decision to relocate.

“These people will mostly bring their money and investments to other Southeast Asian countries,” he says.

Many long-term residents are considering relocating to Vietnam, Thailand, and Cambodia. One expatriate from Germany who did not want to be named says that even those who could afford the “bond deposit” do not feel comfortable keeping that kind of money locked away in an Indonesian bank for up to 10 years, without permanent resident status.

“I cannot change my retirement visa into a second home visa. I do not have that amount of money. And if I had, I would not put it in a bank, where I cannot touch it anymore,” expat “Frank” told local English-language news site Coconuts Bali.

The new Second Home Visa requirements were announced by Indonesia’s Directorate of General Immigration in October.

Revealed in the run-up to the G20 summit hosted by Bali’s luxurious Nusa Dua resort, the new visas were said to tie into Indonesia’s vision for high-value tourism and investment in the island.

“This immigration policy is one of the non-fiscal incentives that can be a stimulus for certain foreigners to stay and contribute positively to the Indonesian economy amidst increasingly dynamic global economic conditions,” said Director General Widodo Ekatjahjana at the time.

The changes are expected to come into effect on December 24.

Indonesia is wooing remote workers to luxuriate in Bali's lifestyle. Photo / Getty Images

End of the road for Visa runners

Another drastic change for foreign nationals and remote workers based in Bali is the possible addition of a cool-down period between business and “social” visas.

While the country has announced its intention to launch new visa types - such as a tax-free “digital nomad visa”, which would allow expats to stay for up to five years - existing visas and agreements are having an overhaul.

In June, Tourism Minister Sandiaga Uno said the reopening of Indonesia post-pandemic was “an opportune time to relaunch this idea”, and that new visa classes would help bring the island’s 3.6 million overseas travellers back.

The B211A is used by many overseas visitors on prolonged visits, supporting themselves from remote work for up to 180 days at a time.

It is granted automatically to many visitors but cannot be applied for within Indonesia. This led to many visitors exploiting a loophole, applying for multiple, back-to-back visas, by doing “visa runs” to nearby Malaysia or Singapore.

Now Indonesia is looking at introducing a three-week cooldown period before you apply for a new e-Visa, apparently to crack down on this practice.

While he can understand why it would happen, Matt says that if this happens it would drastically change the outlook for the expatriate scene in Bali.

“I see both good and bad things about it, but it’s going to affect a lot of people.”