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Government Plans to Release Tax-Free Digital Nomad Visa

Yohana Hoetama
11:33, 22 Jul 2022

July 22, 2022 – The Government plans to release a digital nomad visa for tourists who wants to work while on holiday in Indonesia. It is said that the visa will be tax-free.

Digital nomads becoming one of the increasing trends among tourists in the past few years. Digital nomads refer to those who are working independently anywhere. They usually work while simultaneously on vacation. Thus, they usually go to places with most tourist attractions.

One of the places that attracted digital nomads in Bali. Based on a couple of surveys, Bali is one of the top destinations for 95 percent of digital nomads. Bali is known as a tropical island that serves the beauty of beaches and hospitality. It’s not a surprise that there are a lot of tourists who love working while vacationing in Bali.

During the peak COVID-19 pandemic, there are a lot of businesses that have to lay off thousands of their employees. Thus, the term “Work from Anywhere (WFA)” came to be for those who work independently or freelance without having a contract with any existing companies or businesses. Therefore, Bali is one of the perfect destinations for it.

Seeing this phenomenon, the Minister of Tourism and Creative Economy (Menparekraf) Sandiaga Uno suggested visas for digital nomads which, have been considered since early 2021. Due to the setbacks caused by the pandemic, the plan was delayed as flights to Indonesia are restricted. But now that the pandemic has slowly subsided, Kemenparekraf has once again brought up the idea in late June 2022.

Digital Nomad Visa vs Other Visa

What differentiates the digital nomad visa from others is that they are specifically for silver economy or senior tourists. Digital nomad visa holders are expected to stay in Indonesia for a long period of time to help the country’s economy.

A digital nomad visa is valid for 5 years, which has a longer period of time compared to a Visa on Arrival (VOA), tourist visa, and other visas with a validity of around 30 to 180 days. Digital nomad visa holders will not be taxed, which only applies to those who do not receive any income within the Indonesian jurisdictions.

Currently, Menparekraf Sandiaga Uno has said that the plan to release digital nomad visa has reached its final discussions and will be coordinated with relevant ministries and agencies.

Content Writer

An escapist yet realistic, Yohana tends to keep her feet on the ground and head above the clouds. A culture enthusiast with impulsive tendencies when it comes to knowledge and food. She starts her writing journey during high school as a hobby at first, before it grows into passion and love.

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