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Exa: balivisa.co
Exa: balivisa.co
Bali Zero handles visas, company setup, tax and property compliance in Indonesia. Ask us directly on WhatsApp.
Chat with Bali Zero on WhatsAppA wave of content circulating on visa advisory websites in early 2026 has promoted what is described as a dedicated visa pathway for foreign investors
A wave of content circulating on visa advisory websites in early 2026 has promoted what is described as a dedicated visa pathway for foreign investors targeting Indonesia's underdeveloped villages. Despite the narrative's appeal — lower capital thresholds, rural development credentials, simplified sponsorship — no such visa category has been confirmed in Indonesia's verified regulatory framework as of April 2026.
The foundational legal architecture for foreign investment in Indonesia remains governed by Perpres No. 76 Tahun 2024, which amended the earlier Perpres No. 70 Tahun 2023. This regulation formally recognized Village-Owned Enterprises, known as BUM Desa (Badan Usaha Milik Desa), as legal entities capable of managing businesses, attracting investment, and administering village assets. The intent is explicitly developmental: BUM Desa are designed to channel economic activity into rural communities. However, the regulation does not create a corresponding immigration instrument for the foreign investors who might engage with them.
On the immigration side, the current framework is shaped by Permenkumham No. 22 Tahun 2023 and its 2024 amendment, Permenkumham No. 11 Tahun 2024. These define the Investor KITAS (E28A), which requires a minimum PT PMA participation of Rp 10 billion, and the Golden Visa (E28B), which demands between USD 2.5 million and USD 5 million in investment. Neither regulation introduces reduced thresholds or preferential treatment for investment directed at underdeveloped or rural areas.
A notable procedural update did arrive via Permenimipas No. 5 Tahun 2025, issued by the Ministry of Immigration and Correctional Services. This regulation eliminated the requirement for a traditional Indonesian guarantor (penjamin) for foreign investors, replacing it with a corporate-based Immigration Guarantee (Jaminan Keimigrasian) tied to the investor's business commitments. This change materially simplifies the sponsorship process for legitimate PT PMA investors but does not introduce new rural investment categories.
At the provincial level, no Bali-specific Regional Regulation (Perda) or Gubernatorial Decree (Pergub) has been identified that establishes localized visa rules, alternative investment thresholds, or dedicated zoning provisions for underdeveloped village investment. The regulatory gap between BUM Desa's developmental ambition and Indonesia's immigration framework remains open.
The enthusiasm around village investment visa guides reflects genuine demand — many of our clients are looking for lower-cost, higher-meaning alternatives to the standard PT PMA route. The BUM Desa fr
amework is real, legally sound, and genuinely underexplored. What does not yet exist is a dedicated visa instrument to match it. That gap matters enormously in practice: you can structure a participat
ion in a BUM Desa, but you will still need to enter and reside in Indonesia under one of the existing visa categories, each with its own capital and compliance requirements.
The 2025 elimination of the personal guarantor requirement is a genuine improvement that reduces friction for serious investors, and it has not received the attention it deserves. Meanwhile, the village investment visa narrative — however well-intentioned — creates risk for clients who may delay or misconfigure their legal structure while waiting for a product that does not exist.
Our position: engage with BUM Desa structures where they make sense commercially, but anchor your residency strategy on verified instruments. The Investor KITAS and Golden Visa remain the primary routes.
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