Jakarta (ANTARA) – Indonesia’s Directorate General of Immigration is reviewing work visas and considering new tax regulations for foreign digital nomads, due to the growing rise of international remote workers in popular destinations such as Bali.
Director General of Immigration Hendarsam Marantoko acknowledged that the influx of foreign remote workers presents a complex regulatory challenge for the government, similar to debates taking place in Europe and other major global destinations.
“Digital nomads are a shared responsibility regarding appropriate treatment. I even looked for benchmarks for digital nomads. It turns out the problem is the same for all of us,” Hendarsam said during a press briefing here on Wednesday (August 12).
Digital nomads generally refer to individuals who work independently using digital technology, allowing them to complete tasks remotely from various locations globally.
According to Hendarsam, the presence of foreign remote workers creates complex regulatory and tax dilemmas because they reside physically in Indonesia while performing work for overseas employers.
Under the existing rules, standard work visas typically assume local employment, leaving authorities grappling with how to address foreign remote workers under domestic tax and labor laws.
“They are physically in Indonesia, but their jobs are abroad,” he noted, highlighting the core policy conflict: whether to treat these individuals as long-term tourists who stimulate the local hospitality economy, or as working residents subject to taxation.
Hendarsam further acknowledged that public perspectives on the issue remain divided.
While digital nomads contribute revenue to local housing, dining, and service sectors, concerns remain regarding residence permit violations, overstaying, and untaxed economic activity.
To address these challenges, the Directorate General of Immigration is working closely with relevant ministries and agencies, including the Directorate General of Taxes, to explore potential regulatory solutions.
The ongoing joint study covers potential tax mechanism strategies for foreign remote workers as well as legal enforcement measures, he added.
Hendarsam said any formal policy updates will follow the completion of ongoing studies, calling for support from the public and media as authorities finalize their efforts to establish clearer legal frameworks for foreign remote workers in Indonesia.
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Translator: Laily Rahmawaty, Yashinta Difa
Editor: Bayu Prasetyo
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