Director General Of Immigration Calls Tightening Visa Investors Strengthening Local MSMEs

DENPASAR - Director General of Immigration Silmy Karim said the tightening of investor visas to foreign nationals (WNA) was intended to strengthen local micro, small and medium enterprises (MSMEs).

"If the reference to existing laws is Rp. 1 billion in the micro category, there will automatically be problems," said Silmy Karim, Seras, a 1 Oktoober.

According to him, the investment value rule or capital participation of Rp. 1 billion is considered to be the easy cause for foreigners to get investor visas.

Meanwhile, during operations in the field, the foreigner who pocketed the investor's visa turned out to have abused immigration residence permits, including depriving the MSME sector, which has been involved in local entrepreneurs, and not doing business according to investor visas.

Based on Article 35 of Government Regulation (PP) Number 7 of 2021 concerning ease, protection, and empowerment of cooperatives and MSMEs, the category of micro-businesses has a maximum business capital of IDR 1 billion, excluding land and business buildings.

There is also a business capital criterion that is used for the establishment or business registration.

As a result, this condition was complained by micro business actors, including those in Bali who competed with foreigners.

"The demands of the Balinese people for micro, small and medium activities should be owned by the Balinese people or Indonesian citizens," he added.

However, the facts on the ground when immigration officers carried out surveillance operations for foreigners, it turned out that they (foreigners) had a Business Identification Number (NIB) to the deed of establishment of the company.

For this reason, his party increased the investment of foreigners' capital to Rp10 billion for limited stay permits in the context of investment, and Rp15 billion for permanent capital investment permits.

He asked foreigners who have an investment using the old conditions, so capital participation must be increased to Rp10 billion for a limited stay permit (Itas) for investors or Rp15 billion for permanent residence permits for investors.

As for the time limit for increasing capital participation, he continued, it will be given until December 2024.

Even so, he said, his party is currently discussing the opportunity to tolerate the deadline for fulfilling the increase in capital participation over the next year considering that they have the potential to synergize with other investors.

"We checked, whether or not he (WNA) invested. Otherwise, we withdrew (ITAS). If, for example, there is still (investment) but small, not adjusted, we will give adjustments until the end of the year to reach Rp10 billion. So there is also a period, it is not fair if we immediately break up," he said.

The tightening of investor permits has observed a number of foreigners committing violations of Itas Investors.

One of them, a foreigner from Russia with the initials AA who was deported by the Denpasar Immigration Office, Bali on Friday (6/9) due to misuse of residence permit, namely holding the Itas Investor but allegedly being involved in prostitution.