What Has Changed in Indonesia’s Immigration Policy Since 2014?
In 2014, Indonesia welcomed a new era of leadership. The seventh president, known for his humble roots and grassroots appeal, marked a sharp departure from decades of ex-military leadership. Optimism ran high as bold infrastructure plans and an open-door investment policy fueled innovation. The result was remarkable: Indonesia produced 14 homegrown unicorns and embraced an outward-looking, transformative agenda.
The 2024 Election and Indonesia’s New Immigration Landscape
Fast-forward a decade, and the momentum looks different. The 2024 election marked the return of a military figure to the presidency, signaling a pivot back to establishment politics.
Indonesia’s vision remains ambitious—expanding transport networks, investing in green energy, and building the new capital city, Nusantara. Yet, the national mood is less confident. Public unrest, rising protectionism, and youth dissatisfaction present a stark contrast to the earlier spirit of openness. Tighter policies on immigration and labor reflect this tension: while global talent continues to enter, local frustrations are fueling a desire to leave.
Why Local Talent Is Looking Abroad
The first months of the new administration brought turbulence. The controversial #IndonesiaGelap (“Indonesia goes dark”) protest erupted after cuts to the education budget, followed by backlash against changes to military law. The financial markets sank 7%, the steepest fall since 2011.
Meanwhile, online activism took a new form. The hashtag #KaburAjaDulu (“just escape first”) symbolized growing political fatigue and economic frustration, especially among Indonesia’s youth and middle class. What began as satire soon reflected a real wave of brain drain aspirations.
Destinations for Indonesian talent include:
- Singapore: Close proximity, strong career opportunities, and high living standards.
- Japan: Offering pathways for over 100,000 Indonesian workers in healthcare, agriculture, and construction.
- Australia: Expanding Working Holiday Visa quotas, now allowing 5,000 Indonesians annually.
These pathways are contributing to a steady outflow of talent at the very moment Indonesia needs to retain its skilled workforce.
How is Indonesia Attracting Foreign Investment and Global Talent?
Despite domestic discontent, Indonesia has become more attractive to foreigners. Between 2022 and 2024, foreign workers increased by 64% and international tourist arrivals more than doubled.
This paradox—exporting local talent while importing foreign expertise—sits at the heart of Indonesia’s immigration dilemma.
Investment Immigration Priorities
Indonesia’s FDI strategy emphasizes electric vehicle batteries, renewable energy, public transit, digital infrastructure, and Nusantara. These projects demand specialized expertise, leading to streamlined digital immigration processes. Key visa pathways include:
- Second Home Visa & Investor Visa: For retirees and business investors.
- Golden Visa: Launched in 2024 to attract high-net-worth individuals and global talent. By 2025, 471 Golden Visas generated around US$558 million in investment.
While signaling openness to investment, the government enforces stricter localization in areas with sufficient domestic workforce supply.
Impact on Businesses and Workforce Planning
Companies hiring foreigners face growing oversight.
- Role restrictions: Foreigners are generally excluded from HR, legal, and supervisory positions.
- Shadow quotas: Officially absent, but local authorities sometimes impose informal limits.
- Localization mandates: Employers must assign Indonesian understudies and provide skill transfer plans.
The result: foreign hires must prove not only their qualifications but also their contribution to local capacity building.
Immigration Opportunities and Risks for Businesses
Opportunities
- Digitized eVisa processes, including the Remote Worker Visa, simplify applications.
- Online work permit submissions have streamlined processes in major hubs like Jakarta and Bali.
Risks
- Regional inconsistencies remain; outside major cities, approvals may still require offline submissions and manual endorsements.
- Processing delays, sudden documentation changes, and inconsistent interpretations can disrupt operations.
The difference between policy and practice often surprises foreign companies, making immigration strategy critical to success.
What is the Future of Indonesia’s Immigration Strategy?
Indonesia’s approach in 2025 is neither fully open nor fully closed. Instead, it is selectively adaptive: encouraging investment and expertise while tightening local labor protections.
The challenge ahead is balance—between value creation, local development, and trust-building with global partners. For investors and mobility leaders, the key question is evolving:
It is no longer just “Can we get talent into Indonesia?” but rather,
“Can we build something sustainable with the right talent, at the right time, in the right way?”
Pros and Cons Summary
Pros:
- Streamlined digital immigration processes and eVisa options.
- Clear opportunities in priority sectors like EV batteries, green energy, and digital infrastructure.
- Prestige pathways (e.g., Golden Visa) attracting investment and high-value individuals.
Cons:
- Regional inconsistencies and bureaucratic hurdles outside major hubs.
- Growing localization mandates and role restrictions limit flexibility for foreign hires.
- Rising domestic unrest and brain drain risk undermining long-term stability.
Bottom Line: Indonesia is rolling out the red carpet for global investors and specialists—while tightening the red tape at home. Businesses that understand this duality and prepare accordingly will be best positioned to thrive.