Indonesian authorities have begun reviewing the residency and taxation rules for foreign digital nomads and other remote workers, whose numbers are growing, particularly in Bali and other popular tourist regions of the country.
Hendarsam Marantoko, Director General of the Indonesian Immigration Service, announced at a press conference that the agency, in collaboration with the tax service and other government agencies, is exploring possible legislative changes regarding foreign professionals who are physically present in Indonesia but work for companies abroad.
According to Marantoko, the current system creates a legal conflict. Standard work visas are primarily intended for foreigners employed by Indonesian employers, whereas digital nomads earn their income outside the country. The authorities need to determine whether they should be considered primarily as long-term foreign visitors who spend money on housing, food, and services, or as working residents subject to tax obligations.
That said, a separate legal framework for remote work in the country already exists. The current visa classification includes the E33G Remote Worker category for foreigners who are employed by a company located outside Indonesia and perform this work from within the country.
One of the key issues in the upcoming review will be taxation. According to current guidelines from the Indonesian Directorate General of Taxes, a foreign national can generally obtain domestic tax resident status if they reside in the country for more than 183 days within a 12-month period or demonstrate an intention to reside permanently in Indonesia. These rules may also apply to digital nomads, depending on specific circumstances and international double taxation treaties.
The Indonesian authorities have not yet disclosed the specific details of the new rules or the timeline for their implementation. The Immigration Service has stated that official changes will be announced after the completion of an interagency review. At the same time, the authorities aim to preserve the economic benefits of having remote workers while strengthening oversight of immigration violations, overstaying visas, and undeclared economic activities.
Bali remains one of the world’s largest hubs for digital nomads: foreigners who live here long-term drive demand for rental housing, restaurants, coworking spaces, and other services. Therefore, changes to visa and, especially, tax regulations could directly affect a significant portion of foreigners who use the island as a permanent base for remote work.
Indonesia plans to allow limited dual citizenship for the first time for certain members of the national diaspora and highly skilled professionals. President Prabowo Subianto put forward the initiative, proposing that Parliament amend the citizenship law. The president presented the initiative during a speech in parliament on Indonesia’s 2027 state budget proposal.
According to him, the new policy will not apply to everyone who wishes to obtain a second passport. It involves limited dual citizenship for professionals and members of the diaspora in whom the state has an interest.
Among the potential categories, Prabowo named scientists, doctors, engineers, artificial intelligence specialists, researchers, entrepreneurs, artists, and athletes.
“We propose allowing dual citizenship for certain talents that the country needs,” the president stated.
According to him, the authorities should not force Indonesia’s most successful expatriates to choose between an international career and maintaining ties with their historical homeland.
It is expected that potential recipients of dual citizenship will undergo a separate selection process, including a background check. The rights and obligations of such citizens are to be defined separately by law, taking into account national security considerations.
Current Indonesian law generally does not recognize dual citizenship for adults.
Children who have acquired citizenship in two countries may temporarily retain both statuses; however, upon reaching the age specified by law, they must choose one citizenship.
Therefore, implementing Prabowo’s initiative will require amending the current law and obtaining parliamentary approval. A timeline for adopting the relevant amendments has not yet been announced.
The initiative is a continuation of a long-standing discussion on engaging the Indonesian diaspora. As far back as 2024, authorities publicly discussed the possibility of dual citizenship for former citizens and professionals of Indonesian descent.
The authorities cite the brain drain as one of the reasons for the reform. According to Indonesia’s Directorate General of Immigration, nearly 4,000 Indonesians obtained Singaporean citizenship between 2019 and 2022, renouncing their Indonesian passports. The authorities hope that the option to retain Indonesian citizenship will allow professionals to pursue international careers without severing their legal ties to the country.
The involvement of the diaspora is already particularly noticeable in sports. In recent years, the Indonesian national soccer team has included a number of players born primarily in the Netherlands who have Indonesian roots. The authorities implemented special procedures for them to obtain citizenship.
Ahead of a possible reform, Indonesia launched the Global Citizenship of Indonesia (GCI) program.
It allows former Indonesian citizens and certain foreigners of Indonesian descent to obtain a permanent residence permit with the right to enter the country multiple times without renouncing their existing foreign citizenship. However, GCI does not constitute Indonesian citizenship and does not entitle holders to an Indonesian passport.
The program applies, in particular, to former Indonesian citizens, their descendants, and certain categories of family members with ties to Indonesia.
The limited dual citizenship currently being proposed should go much further and allow certain members of the diaspora to simultaneously retain their foreign citizenship and restore or obtain Indonesian citizenship.
CITIZENSHIP, DUAL CITIZENSHIP, IMMIGRATION, INDONESIA, ДІАСПОРА
Indonesia intends to transform Bali from a primarily tourist destination into an international financial hub capable of competing for capital with Singapore, Hong Kong, Dubai, and London.
The Kura Kura Bali SEZ is set to become the project’s key hub. Indonesian authorities view it as a future financial cluster where investment firms, family offices, funds, and technology and service companies focused on international capital can be based.
Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the development of a financial center in Bali demonstrates the country’s transition to an economy with higher value-added. According to him, global competition today is not only in the sphere of raw material exports but also for the role of a regional center for finance, innovation, and investment.
The project is linked to Indonesia’s broader goal of reducing the economy’s dependence on commodity cycles, tourism, and traditional industries. The authorities want Bali to become not only a resort but also a hub for capital management, international business, technology projects, and investment structures.
For the real estate market, this could become a new driver of demand. If the project is implemented, interest in office, residential, and hotel real estate in Bali could grow, as well as in mixed-use properties targeting expats, entrepreneurs, financial professionals, and investors. This could be particularly noticeable in areas connected to Kura Kura Bali and the infrastructure of the future business cluster.
However, experts point out that Bali’s path to becoming a full-fledged financial center will be challenging. The island will have to compete with established hubs that already have developed financial regulation, a judicial system, banking infrastructure, international talent, and the trust of institutional investors. The South China Morning Post notes that the project faces systemic and infrastructure constraints, despite its ambitious agenda.
The results of a sociological survey conducted in March 2026 by the research company Active Group in collaboration with the Experts Club information and analytical center show that Indonesia remains one of the countries with the highest level of neutral perception among Ukrainians. According to the study, 71.6% of respondents chose a neutral assessment, indicating limited involvement of this country in Ukraine’s informational and economic space.
The share of positive attitudes toward Indonesia stands at 20.3%. Specifically, 6.5% of respondents indicated a “completely positive” attitude, and 13.8% — “mostly positive.” At the same time, negative assessments remain minimal — a total of 3.0%, of which 2.3% answered “mostly negative” and only 0.7% — “completely negative.” Another 5.1% of respondents were unable to determine their position.
This pattern of responses is typical for countries that do not have a significant influence on Ukraine’s domestic agenda or are not associated with key political, security, or economic processes. The high proportion of neutral assessments indicates not a negative perception, but rather the absence of a clearly formed image of the country in the public consciousness.
“When we see over 70% neutral responses, it means that the country is effectively outside the active information field of Ukrainians. In such cases, perceptions are formed not through experience or interaction, but through fragmented impressions. That is why even a slight increase in economic or humanitarian contacts can quite quickly shift the balance of assessments in a positive direction,” noted Maksym Urakin, founder of the Experts Club information and analytical center.
Thus, Indonesia remains a country with the potential to build a positive image among Ukrainians; however, this potential has not yet been realized due to low visibility and limited practical interaction. If bilateral contacts are intensified, particularly in the economic and educational spheres, the neutral segment could become the foundation for growing positive perceptions.
According to a study conducted by the Experts Club information and analytical center based on data from the State Customs Service, Indonesia ranks 32nd in terms of total trade in goods with Ukraine, amounting to $578.3 million. At the same time, Ukraine has a small trade surplus, as exports to Indonesia slightly exceed imports.
The study was presented at the Interfax-Ukraine press center; the video can be viewed on the agency’s YouTube channel. The full version of the study can be found at this link on the Experts Club analytical center’s website.
ACTIVE GROUP, EXPERTS CLUB, INDONESIA, Pozniy, SOCIOLOGY, SURVEY, UKRAINE, URAKIN
The Bali real estate market is experiencing robust growth in 2026, driven by the recovery of tourism and an increase in the number of foreign residents, particularly digital nomads and investors. The main areas of demand are concentrated in Canggu, Seminyak, Ubud, and Uluwatu. These are the areas that form the premium segment of the market and attract international capital.
Prices for real estate in Bali vary significantly depending on the property type. In the villa segment, prices average between $1,500 and $3,500 per square meter, and higher in premium projects. Ready-to-rent villas are sold in the range of $150,000–500,000 per property and above.
Indonesian law restricts foreign ownership of real estate, so the primary model remains a long-term leasehold for 25–30 years with the option to renew.
Foreigners play a key role in the Bali market. In some locations, they account for 60–70% of all transactions, particularly in the rental villa segment.
The main buyer groups are citizens of Australia, the UK, the US, and European countries. In recent years, the presence of investors from Russia and Ukraine has grown significantly, especially after 2022.
Russians have become one of the most prominent groups in the Bali market, actively investing in villas and the rental business. Ukrainians are also present among investors and renters, driving part of the demand in the remote work and relocation segment.
Thus, Bali is one of the real estate markets in the world most dependent on foreign capital, where price dynamics are directly linked to global population mobility and the trend toward remote work.
The price of nickel rose to a 15-month high amid reports that Indonesia is tightening control over metal production volumes.
The price of nickel for delivery in three months rose 6.1% during trading on Tuesday to $18,045 per ton, the highest since October 7, 2024.
“Indonesia’s tightening of production controls through a slower quota approval process and planned quota reductions in 2026 is a fairly effective factor in price growth,” said ING analyst Eva Manti.
She notes, however, that the increase in nickel prices is unlikely to be sustainable, as the market is still expected to see a significant supply surplus in 2026.
The day before, Indonesian publication Bisnis.com reported that the country’s authorities had allowed mining companies to temporarily focus on previously approved metal production quotas for 2026 while new quotas are under consideration.
Nickel is used in the production of stainless steel and for nickel plating. Nickel is also used in the manufacture of batteries, in powder metallurgy, and in chemical reagents.
