Indonesia aims to attract more digital nomads, Relaxes visa norms

Jakarta: Indonesia has announced a more flexible visa for digital nomads. Tourism Minister Sandiaga Uno took to Instagram to announce that digital nomads can work in Indonesia for up to six months using a social-cultural visa.

"I am increasingly convinced the number of foreign tourists who are interested in staying in Indonesia will increase and will automatically have an impact on economic revival," he said.

Previously, employment was not permitted under this visa category. Digital nomads were supposed to work for companies outside Indonesia while living in the country. In exchange, they were exempt from tax. Now, with the new visa, it is not yet clear how the government will tax digital nomads.

The popular island holiday destination has been promoting ways to attract more tourists and long-stay visitors. People across the world who combine travel and recreation by opting for remote working find this to be a good opportunity.

The tourism association is expecting foreign arrivals in Bali to reach pre-pandemic levels by 2025. The island is still recovering from the pandemic as its major source of income was tourists. Before the pandemic, six million tourists visited Bali annually. In January-August 2022, a little over 3,000 digital nomads arrived in Indonesia mainly from Russia, the UK, and Germany. Most of them are living in Bali.

The Bali tourism board has reacted positively to the new visa category. Chairman Ida Bagus Agung Partha Adnyana said the sector has to embrace the opportunity, reported Reuters. "I suggest the government make a clear regulation regarding this. Travellers must pay a certain amount of tax to the Indonesian government if they work from Bali," he added.