Explained: Indonesia’s new visa policy, which allows travellers to live tax-free

So, who are digital nomads? What are these visas? And what are some other countries offering such visas? We explain.

Who are digital nomads?

Digital Nomads are people who work remotely while travelling to different places and spending their earned income in the country they are travelling to.

As the pandemic took place most of the workspaces were shifted online, while some offices have begun to open, most organisations have declared remote work.

Now as the world has moved towards getting vaccinated and international borders have opened up, people can continue doing their regular jobs remotely from anywhere in the world.

According to the 2020 State of Independence in America Report by MBO Partners, “Digital nomads are defined as people who choose to embrace a location-independent, technology-enabled lifestyle that allows them to travel and work remotely, anywhere in the Internet-connected world. Unlike regular remote workers, who tend to stay in one geographic area, digital nomads travel and explore while working.”

The study also found that 10.9 million American workers described themselves as digital nomads in 2020, which was an increase of 49 per cent from 2019.

What is the “Digital Nomad Visa” Indonesia has proposed?

The Digital Nomad Visa would allow remote workers to stay in Indonesia, including Bali, tax-free.

Announced by Indonesia’s Tourism Minister Sandiaga Uno to boost tourism in the country, the visa will be applicable for five years. This would make Indonesia’s visa one of the longest digital nomad visas compared to other countries.

Through the visa, Indonesia aims to bring in over 3.6 million overseas travellers into the country over the next year to explore spiritual retreats as well as the eco-tourism of Indonesia.

As reported by Bloomberg, Uno said that eco-tourism along with sporting events and the five-year visa should bring in millions of travellers and create over a million jobs for Indonesians as the borders have now opened for foreign tourists.

“In the past, the three S was: sun, sea and sand. We’re moving it to serenity, spirituality and sustainability. This way we’re getting better quality and better impact to the local economy,” Uno told Bloomberg.

Under the visa, as long as the remote workers earn from companies outside Indonesia, they can live tax-free inside the country, including on islands like Bali.

In May this year, Indonesia removed most of its Covid-19 mandates for overseas travellers in order to attract more tourists.

Through easy processing of visas and frequent flights, Indonesia aims to attract employees of organisations like Airbnb, Twitter and others who have allowed remote working for all.

Uno also told Bloomberg that in a survey, 95 per cent of digital nomads responded that Indonesia, especially Bali, was the remote working destination that was at the top of their minds.

In 2021 too, Indonesia had thought of granting a special visa to remote workers or those businessmen who travel for leisure but with the rising cases, the plans got cancelled.

“Now with the pandemic handled and all the ministries getting involved and cooperating from the health side to the immigrations office, we believe that this is an opportune time to relaunch this idea,” Uno added.

What are some other countries that provide nomad visas?

Italy in March, released a new permit for non-EU nationals, or digital nomads, who can stay in the country for up to 90 days without a visa.

Antigua and Barbuda offer a digital nomad visa for two years where the travellers will be required to maintain their own health insurance.

Barbados offers a year-long remote working visa which can be extended further.

Other countries offering nomad visas are Croatia, Costa Rica, Georgia, Hungary, Iceland, Mauritius, Norway, and Spain among many others.