After Indonesia's Golden Visa: Will Real Estate Benefit?

Conclusion First: Golden Visa ≠ Direct Real Estate Boost

Many investors see "Golden Visa" and immediately think: real estate opportunities are here.

But in Indonesia, this logic is flawed.

The Golden Visa addresses "long-term residency," not "real estate investment channels."

The real question should be:

👉 Will the Golden Visa indirectly change the structure of real estate demand?

I. Core Rules of Indonesia's Golden Visa

Indonesia's Golden Visa is designed to attract high-quality investors, not real estate buyers.

Main thresholds:

• 5-year visa: approximately $350,000 investment
• 10-year visa: approximately $700,000 investment

Investment directions mainly include:

• Indonesian government bonds
• Stocks
• Deposits

Key point:

👉 Real estate is not a core investment target

This means:

The Golden Visa will not directly drive up housing prices like European Golden Visas do.

II. Why "Buying Property" and "Obtaining a Visa" Are Two Separate Systems

Indonesia's real estate market still has significant restrictions for foreign capital:

1) Land Ownership Restrictions

Foreigners typically cannot directly hold freehold land.

2) Main Holding Methods

• Right to Use (Hak Pakai)
• Condominium ownership (partially feasible)

3) Policy Risks

Real estate rules may change with policy adjustments.

Therefore:

Even with a Golden Visa, it does not mean you can freely buy property.

III. Jakarta: The Most Likely Beneficiary Is Not Housing Prices, but the High-End Rental Market

Jakarta's logic is completely different from Bali's.

Changes brought by the Golden Visa may include:

• Increase in high-net-worth individuals
• Increase in long-term business residency demand
• Increase in demand for international schools and supporting facilities

Beneficial assets:

• High-end apartments
• Serviced apartments
• Long-term rental market

But note:

👉 It's not an overall market rise, but a structural benefit for the high-end segment.

4. Bali: The Market Most Prone to Hype

Bali is the region most easily packaged as a 'golden visa dividend'.

Reasons are simple:

• High international recognition
• Concentration of foreigners
• Obvious lifestyle assets

But the reality is:

Risk Points

• Complex legal structure
• Over-reliance on short-term rentals
• High market volatility

Actual Benefit Logic

• Increased demand for high-end villas
• Increased demand for long-term rentals

But this does not mean:

👉 Housing prices will rise across the board

5. The Real Beneficial Asset Types

Changes that the golden visa may bring are more structural:

1) High-end Residential

Targeting long-term resident expatriates

2) Serviced Apartments

Suitable for long-term rental demand

3) Supporting Real Estate

Education, healthcare, commercial complexes

While the following assets carry higher risks:

• Pure short-term rental investment properties
• Projects with unclear legal structures
• Projects reliant on marketing packaging

6. Core Judgment: This is a 'Demographic Change', Not a 'Housing Price Trend'

In summary:

The golden visa changes:

👉 Who lives in Indonesia

Not:

👉 Whether housing prices will rise

Therefore, a more reasonable understanding is:

This is a long-term demand structure change, not a short-term real estate trend.