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Indonesia aims to lure former citizens to return amid a talent shortage. Will it succeed?

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Channel News Asia - June 22, 2024

Kiki Siregar, Jakarta – She was born in Padang and grew up in Jakarta, but Ms Dewi Brewer, 53, has lived about half her life abroad, spending two decades in Singapore before moving to the United States about seven years ago.

The financial specialist became a US citizen last year and is a federal employee with the US government.

"My family – husband and children – are American, so there was too much immigration paperwork to deal with," said the mother of five, explaining why she relinquished her Indonesian citizenship.

"It is so much easier with the whole family having the same citizenship."

Ms Brewer remains firmly in touch with her culture and roots. She volunteers at the Asian American centre in Frederick, Maryland, where she lives.

She is also part of the Indonesian community in Maryland, Washington, DC, and Virginia, and participates in a musical group playing the angklung, a Javanese bamboo instrument.

With plans to live in Indonesia when she retires, Ms Brewer was excited when Indonesia's Minister of Law and Human Rights Yasonna Laoly recently spoke about the government's efforts to draw the diaspora back while allowing them to keep their foreign citizenship.

On a visit last month to Washington, DC, Mr Yasonna said the Indonesian government is mulling a scheme similar to the Overseas Citizenship of India (OCI).

The OCI gives Indians who've migrated a lifelong multiple-entry and multipurpose visa to India, among other benefits.

Individuals of Indian origin and their spouses can become permanent residents of India, with rights to live and work there indefinitely. However, they do not have political rights and cannot receive government subsidies.

OCI holders are also ineligible for government-related jobs, and must pay income taxes on money earned in India and the same public service fees as foreigners.

On Jun 13, Coordinating Minister for Political, Legal and Security Affairs Hadi Tjahjanto affirmed at a forum in Jakarta that President Joko Widodo may adopt India's OCI model.

A study will be done to assess its investment and economic benefits, and there will be public consultations, said Mr Hadi. A team will conduct the assessment until the end of July and give recommendations to the president, he added.

Migrants as well as locals CNA spoke to largely welcome the plan, but experts say more is needed to entice the Indonesian diaspora to return.

Making it easier to 'enjoy homeland for a lifetime'

The latest buzz surrounding the diaspora stirred in April when tech bigwigs like Apple chief executive Tim Cook and Microsoft chief executive Satya Nadella visited Southeast Asia's largest economy.

Mr Cook talked about investments with Mr Widodo and said Apple was looking at manufacturing in the country, while Mr Nadella said Microsoft would be investing US$1.7 billion (S$2.3 billion) in new cloud and AI infrastructure there.

Indonesia and some other countries in Southeast Asia have been drawing investments as companies seek to diversify operations amid US-China strategic competition. In addition, Indonesia has the world's largest nickel reserves, which are essential to clean technologies such as electric vehicles.

At a Microsoft event, Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan said Indonesia is considering dual citizenship for former citizens.

But at the Jun 13 forum, Mr Hadi said Mr Widodo would stick to Indonesia's single citizenship policy.

The plan for a policy like India's OCI has been discussed multiple times with Mr Widodo, Mr Yasonna told news outlet VOA Indonesia last month, and could be introduced in the next two months, before Mr Widodo hands over leadership to Mr Prabowo Subianto on Oct 20.

"The most important thing is to make it easier for our diaspora to come to Indonesia, live and work here, and enjoy their homeland for a lifetime," he said.

Analysts say the initial focus of the scheme could be on easing entry into Indonesia.

Allowing visa-free travel for the diaspora would enable non-citizens to stay longer than a month, which is the duration a single-entry visa holder can remain in the country for tourism, government visits, business meetings, goods purchasing or transit.

Job opportunities, weak passport among reasons for leaving

According to the foreign ministry, more than seven million people make up the Indonesian diaspora, which includes people of Indonesian descent, legal and illegal migrant workers.

Most of them are in Malaysia, the Netherlands, Saudi Arabia, Taiwan and Singapore.

Citizens living abroad and former Indonesians cite a gamut of reasons for migrating: Education and work opportunities, stability in their chosen countries, marriage, and a relatively weak Indonesian passport.

When Ms Vivi Fajar left for the US 18 years ago, the plan was to get her master's degree in business administration, then gain some work experience there before returning.

"But gradually my job became pleasant and I (made) many friends," said the 41-year-old, an insurance administrator who now lives with her husband and three children in California.

Besides having good mosques nearby, "I also often meet up with Indonesian friends, go to the park and beach to enjoy the fresh air and nature, which is not possible in Jakarta", she said. Indonesia's capital, where Ms Vivi used to live, is known for its air pollution.

Rotterdam resident Monique Patricia, 54, has lived in the Netherlands since 2017. She moved there from Singapore, where she lived from 1999.

She cited the countries' structured environment as a draw and said she plans to retire in the Netherlands. Although the income tax rate there is higher, at "nearly 50 per cent", there are "significant benefits", said the entrepreneur.

"Education fees from primary school through high school, and health insurance for my daughter are covered until she turns 18," said Ms Monique.

As for Brisbane-based psychologist Florentina Anne, 41, a safe and stable environment for her two children is key. "As a parent, you just want to ensure that the environment your children are growing up in is safe ... from any potential political turbulence," she said.

Ms Florentina, who lived in Bogor before moving to Brisbane 20 years ago, experienced Indonesia's economic turmoil from the Asian financial crisis of 1997 as well as social and political unrest in 1998. That year, nationwide protests and riots resulted in at least 1,200 people dying and led to the resignation of authoritarian president Suharto.

The unrest drove thousands of Indonesians out of the country and many have not returned. Since then, Indonesia has experienced relatively stable political conditions and is considered one of the most democratic countries in Southeast Asia.

A newly minted Singapore citizen who asked to be known by his initials H.I. said the strong Singapore passport was one of the main reasons he gave up his Indonesian one.

"I decided to change my citizenship due to the ease of travelling overseas without the hassle of applying for a visa," said the 40-year-old data scientist.

He also considered the stability and bonds forged from living more than 20 years overseas.

Last year, Indonesia's director-general of immigration Silmy Karim said about 1,000 Indonesians renounce their citizenship yearly to become Singaporeans. From 2019 to 2022, 3,912 of them became Singapore citizens, he said. Most of them were aged between 25 and 35, and converted because of the city-state's better living conditions, he added.

Those who have held onto their Indonesian passports cite equally compelling reasons.

Like H.I., neuroscientist Irma Kurniawan has lived abroad for over two decades. Married to a Swiss national, she lives in Basel.

The question of whether to remain an Indonesian citizen is "always there", said the 41-year-old. But her roots and family are "one strong reason" she has hung on, she said.

The COVID-19 pandemic was a sobering reminder.

"During COVID-19, foreigners were not allowed to enter Indonesia, and that was a wake-up call for me of the advantage of being an Indonesian citizen, and made me more sure – at least for now – that I should keep my Indonesia citizenship," said Ms Irma, whose parents live in Jakarta.

Having an Indonesian passport allows one to enter and live in the country, and buy and inherit property and land. Foreigners are not allowed to own land and property in Indonesia.

Big wave of returnees unlikely

But the country needs to offer better job opportunities, infrastructure, and incentives if it wants to draw more people back and stem its brain drain, experts say.

Given its economy is not as mature as that of developed countries yet, policies targeted at its diaspora are not expected to lure a significant number of returnees, they add.

Many jobs in the country are still found in the big cities and talented individuals are forced to move from the suburbs to the metropolises, noted economist Andry Satrio Nugroho of the Institute for Development of Economics and Finance, a research firm.

"So, in the end, the jobs available here are still traditional roles while highly skilled jobs are not much available in Indonesia," he said.

Indonesia's infrastructure is also limited in certain sectors, said Mr Mohammad Faisal, executive director of the Center of Reform on Economics.

"Especially in technology, biology and chemistry-related industries, for scientists," he said. "There are clearly limited opportunities to develop (oneself) in Indonesia with existing facilities both in research institutions and on campuses."

Those with sought-after skills and talents will also consider a range of factors besides quasi-citizenship in deciding whether to return, noted Mr Bilal Dewansyah, an immigration law expert and PhD candidate at the Van Vollenhoven Institute, Leiden Law School in the Netherlands.

"If they can work in Indonesia, I think the factors are not just about citizenship policy, but many other issues such as professional awards, salary, family and mixed-marriage, for example," he said.

Indonesia could consider taking a leaf from countries that have introduced programmes targeting people with specific skill sets, said Mr Bilal.

China's Thousand Talents Plan aimed at recruiting scientists and researchers, for instance, provides "very large salary incentives for highly skilled overseas Chinese who want to return", he noted.

The Plan reportedly attracted more than 7,000 people a decade after its announcement in 2008.

Given current factors and how Indonesia's population is a fraction of India's, Mr Andry believes his country is unlikely to see a huge wave of returnees under an OCI-like policy.

India's diaspora is the world's largest, with an estimated 18 million migrants globally, according to United Nations estimates from 2020.

India's OCI was launched in 2006 in response to the diaspora's demand for dual citizenship, which the country does not allow.

As of 2022, about 4 million people are holders of OCI cards, and the Indian government may revoke OCI status under certain conditions, for example, when a holder is believed to have participated in anti-India activities.

Watch out for disparities

Locals who spoke to CNA largely welcomed the prospect of more overseas countrymen and former citizens returning, but said some matters should be addressed in order not to cause discontent.

In 2016, the issue of dual citizenship caused an uproar when Mr Widodo appointed Mr Arcandra Tahar as energy and mining minister. It quickly emerged that Mr Arcandra had dual citizenship and after less than a month in the job, Mr Widodo decided to remove him.

Returnees will bring a host of advantages ranging from rarer or niche skills, the ability to adapt to new environments, and prior knowledge of Indonesian culture and language, said human resource specialist Dian Kurniawan.

Mr Randy Mulyanto, founder of a public relations and content agency called RadVoice, does not think returnees will pose a threat to locals. "Indonesia is too big of a country ... there is demand for talented people educated (and who've acquired their skills) in the country and abroad," declared the 28-year-old, who lives in Tangerang.

Communications consultant Nur Rizqi Muharrama Isnaini, 24, believes returnees can help to create new jobs, but said there may be salary disparities between them and those born and bred in Indonesia. "This may cause dissatisfaction among workers," she said.

Marketing executive Jalu Satwiko, 32, said there should be rules regarding land use and property ownership for the diaspora. "They can do business but when it comes to land ownership, the scheme should stick to the current law (that does not allow foreigners to own land)," he said.

Meanwhile, some Indonesians who have returned to the country after stints abroad say there is an adjustment period.

Mr Komang Narendra, 35, recently returned after living in Singapore for 17 years. The research engineer now lives in Bali and is self-employed.

"I have been steadily adjusting so far, from the working pace and finding information to getting reconnected with local communities," he said.

If Indonesia rolls out a scheme for its diaspora, the framework should clearly spell out their rights and responsibilities, said Mr Komang. This is because people return for a host of reasons ranging from family connections and living costs, to quality of life and self actualisation, he said.

Eight years after moving back to Jakarta, Mr Ferdiano Pradipta, 32, said the experience has been positive.

"I'm quite happy with the consistent economic growth of Indonesia at a time when several other countries have already entered recession," said Mr Ferdiano, who used to work in the oil and gas industry but is now head of e-commerce and digital at a leading healthcare company.

The robust economy has been good for his career, and he believes visa-free employment is an important consideration for the diaspora.

"Along with the private sector, (the government) also needs to develop more relevant advanced industries like technology, health and semiconductors so that talents are not wasted," he said.

For others like Ms Dewi, who still has relatives in Jakarta, Yogjakarta and Bunyu Island in Kalimantan, family ties remain the most powerful draw. "Back to your home, where your roots are," she said.

Source: https://www.channelnewsasia.com/asia/indonesia-diaspora-visa-overseas-skilled-talents-citizenship-441017

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