This policy is considered to be able to increase Indonesia’s competitiveness, what is it?

This policy is considered to be able to increase Indonesia’s competitiveness, what is it?

9th May 2024

Jakarta: The government plans to grant dual citizenship to attract highly competent workers and support the government’s ambition to become a developed country by 2045. The proposed policy is seen as a strategic step in harnessing talent in the global landscape and driving economic innovation.

“The introduction of the dual citizenship system will be the beginning of a positive transformation for Indonesia. Not only making Indonesia an attractive destination for international talents, Indonesians abroad can also maintain emotional bonds and contribute to the country,” said Citizenship Invest CEO Veronica Cotdemiey in a written statement, Thursday, May 9, 2024.

Indonesia, Southeast Asia’s largest economy, has lost many high-quality human resources who left and settled abroad. This is due to the citizenship law that does not allow dual citizenship for Indonesian citizens since 2006.

As a result, many Indonesian human resources, especially professionals and academics, have renounced their Indonesian citizenship in order to get better opportunities abroad. According to the Directorate General of Immigration, there were nearly 4,000 Indonesians who changed nationality to Singapore in 2019-2022.

Citizenship Invest is a Dubai-based company that specialises in citizenship and residency through investments from high-net-worth individuals around the world.

Positive impact

The departure of high-quality human resources is very unfortunate, especially because Indonesia is a developing country with great growth potential. The World Bank estimates that Indonesia’s GDP can increase even more rapidly if Indonesia can retain and attract global talent effectively.

The benefits of dual citizenship have been felt by many other countries. One of them is India, which has an Overseas Citizenship scheme, where diasporas can contribute back to India through investment, philanthropic activities, and knowledge transfer, without the need to renounce their new citizenship.

“Dual citizenship can be a new breakthrough for Indonesia, especially in utilizing its global network and expertise. This policy offers a more inclusive national development framework, which embraces and engages diverse capabilities of communities, both from within and outside the country,” Cotdemiey said.

The economic impact of dual citizenship is not just limited to the scale of individuals. Licensing dual citizenship could boost Indonesia’s attractiveness as a global investment destination. The Indonesian diaspora living abroad can hoist foreign direct investment, especially because they will prefer to invest in their home country.

“The existence of dual citizenship allows Indonesian expatriates to maintain their origins and connect Indonesia with the global market. Investment and expertise from the diaspora will play an important role in shaping a strong and rapidly growing economic landscape for Indonesians,” he conclu

Source - MedCom