Indonesia considers dual citizenship and tax incentives to attract foreign investment

Indonesia is considering various incentives through the Pusat Finansial Internasional Indonesia (PFII) to attract foreign capital. Mukhamad Misbakhun, Chairman of Commission XI of the DPR RI, stated that these incentives could include Golden Visas, 0 percent cumulative tax facilities for expatriates, and the option of dual citizenship. The goal is to utilize PFII as an instrument to draw global funds, particularly into the real sector, to stimulate job creation and economic growth.

However, economic analysts suggest that achieving the 6 percent economic growth target outlined in the 2027 State Budget Draft (RAPBN) cannot rely solely on investment. While investment realization has shown positive performance, much of it remains concentrated in capital-intensive sectors like infrastructure and downstreaming. Experts warn that without recovering domestic purchasing power and ensuring equitable job absorption, high growth risks being exclusive and failing to benefit the middle and lower classes.