Indonesia’s government has decided to delay opening the country until Covid-19 cases fall significantly. Indonesia’s tourism minister said in an interview, adding that digital nomads will be granted 5-year visas and face no taxation on foreign-sourced income.
The coronavirus pandemic has devastated the economy of Bali, for decades a magnet for holidaymakers thanks to its beautiful beaches, vibrant nightlife and distinctive Hindu culture. To boost Bali’s economy after the pandemic, tourism officials hope to attract more digital nomads, online-based business owners and people who work remotely. Under a proposed scheme, the foreigners will be granted 5-year visas with no taxes on foreign-sourced income, according to Indonesia’s Minister for Tourism and the Cultural Economy, Sandiaga Uno. “If they earn income within Indonesia, they will be taxed but if it’s solely from overseas there will be zero tax.”
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“We were targeting end of July, beginning of August, but we just have to be mindful of where we are in this recent spike… We will be waiting for the situation to be more conducive.” Uno said he wanted Bali’s daily coronavirus infections to fall to 30 or 40 per day before reopening. The popular tourist island has been devastated by the pandemic. Infections rates could be higher than reported as the testing rate is about 15% of the minimum recommended by the World Health Organisation, Reuters reported.