No Dual Citizenship, but Indonesia Offers Permanent Residency for Eligible Foreigners 

The Immigration and Correctional Affairs Ministry on Wednesday introduced the Global Citizenship of Indonesia (GCI) program, a new residency policy designed to resolve long-standing issues surrounding dual citizenship in the country. 

The scheme, launched by the Directorate General of Immigration, offers permanent, unlimited residency to eligible foreign nationals with strong historical, familial, or emotional ties to Indonesia, without requiring them to relinquish their existing citizenship. 

“GCI is a solution to the dual-citizenship debate. It grants broad residency rights to foreigners who have deep ties to Indonesia while respecting their current citizenship and remaining fully compliant with national laws,” Immigration Minister Agus Andrianto said in a statement. 

Indonesia adheres strictly to a single-citizenship system, which has long been a barrier for former Indonesians and their descendants seeking to maintain meaningful links to the country. The GCI initiative aims to bridge that gap by extending participation to a wide group of foreign nationals connected to Indonesia. 

Eligible applicants include former Indonesian citizens, second-generation descendants of former citizens, legal spouses of Indonesians or ex-Indonesians, and children from legally recognized marriages between Indonesian nationals and foreign citizens. 

However, the scheme excludes individuals from countries that were once part of Indonesia’s territory, those involved in separatist activities, and foreign civil servants, intelligence personnel, or military members. 

Applications for GCI must be submitted online via evisa.imigrasi.go.id, using an integrated system that covers issuance of limited-stay visas, conversion to permanent residency, unlimited extensions, and multiple re-entry permits. 

Indonesia’s new approach mirrors similar frameworks abroad, such as India’s Overseas Citizenship of India (OCI) program. Agus said the international success of such schemes reinforces the credibility and feasibility of Indonesia’s version. 

“The Indonesian immigration system will remain responsive to global challenges. GCI is proof that our policies are not only service-oriented but continuously evolving to meet international standards,” he said. 

Source: Jakarta Globe 
 

Local Firm to Build USD 300 Million PET Plant to Cut Import Reliance 

Local petrochemical company PT Lintas Citra Pratama (LCP) has begun developing a USD 300 million (IDR 5 trillion) polyethylene terephthalate (PET) plant as part of its long-term strategy to reduce reliance on imported raw materials. 

The facility, which will have an annual production capacity of up to 720,000 tonnes, will be built on land owned by LCP’s subsidiary, PT Merak Chemical Indonesia (MCCI), in Banten. 

MCCI described the project as a “pivotal moment” for both the company and Indonesia’s broader industrial ambitions, noting that the domestic market still depends heavily on PET imports for key manufacturing sectors. 

PET is a transparent thermoplastic polymer widely used in textiles as well as packaging for food and beverage containers. 

“This downstream push will not only create added value for the company but also strengthen Indonesia’s position in the regional industrial chain,” MCCI president director Anang Adji Sunoto said on Monday, as quoted by Antara. 

The investment aligns with President Prabowo Subianto’s call to accelerate integrated downstream development, particularly in strategic sectors where Indonesia continues to face structural deficits. 

The president underscored his petrochemical push earlier this month by inaugurating PT Lotte Chemical Indonesia’s USD 3.9 billion plant in Cilegon, Banten. In June, state asset fund Danantara also announced plans to invest in new chlor-alkali and ethylene dichloride (CA–EDC) facilities under publicly listed petrochemical giant Chandra Asri Group, a joint venture that could reach up to USD 800 million. 

MCCI’s Anang said that integrating purified terephthalic acid (PTA) production with PET manufacturing would enable LCP to capture more value domestically while delivering greater supply-chain efficiency. 

“With the land and core infrastructure already in place, this USD 300 million investment will be far more optimal. Beyond efficiency, the PTA-PET integration will enhance our competitiveness against imported products,” he said. 

Anang added that the investment would also generate a multiplier effect on the regional economy. 

“Beyond strengthening downstream industries such as packaging and PET-based products, the project is expected to create both direct and indirect employment opportunities and stimulate MSME growth around the industrial zone,” he said. 

LCP is currently in the tendering phase, with construction expected to start in the second half of 2026. Commercial operations are scheduled for 2028. 

Once fully operational, the plant is projected to improve Indonesia’s self-sufficiency in PET raw materials and enhance its regional market presence, particularly in Southeast Asia, where demand continues to expand. 

“We believe the government will extend support to the upstream-downstream PET and polyester industry so it can compete with imported products,” Anang said. 

Established in 1991, MCCI operates two PTA plants on a 23-hectare site in Cilegon, Banten. Initially operated by Mitsubishi Chemical Group, the Japanese firm sold its majority share in the company to LCP in 2024. 

With a combined capital base of USD 146.3 million and an annual production capacity of 660,000 tonnes, MCCI is currently the country’s largest PTA producer, serving as a strategic upstream supplier for polyester, packaging and other downstream manufacturers. 

Source: Jakarta Post 

Indonesian State-Owned Fund Eyes Overseas AI Infrastructure Opportunities, Official Says

Indonesia’s social security fund is keen to invest in companies that provide infrastructure for artificial intelligence, if it wins government approval for overseas investments, a director told Reuters. 

One of Indonesia’s biggest institutional investors, the fund awaits regulatory approval for its bid to expand beyond limited domestic opportunities, Edwin Ridwan, the director of investment development, said on Monday. 

“The artificial intelligence (AI) supply chain will be a good diversification for our investment, and it could be in the United States, Taiwan, Japan and South Korea,” he said, adding that there was no timeline for the decision. 

The fund, BPJS Ketenagakerjaan, is seeking approval to invest up to 5% of its portfolio overseas, Edwin said. It has assets of IDR 879 trillion (USD 52 billion) under management. 

The fund sees investment opportunities in companies that support the AI industry, such as data centers, energy companies that supply power to them, and cable manufacturers, Edwin said. 

Core AI firms such as chipmakers were already “too crowded”, he added, though he did not rule out possible investment in chipmakers such as Nvidia, noting that any decision would depend on their valuation. 

In April, Reuters reported that the fund wanted to double its exposure to local equities to up to 20% within three years, from about 10% at the time. Bonds made up the largest share of its investments, with the rest in deposits and other instruments. 

The fund is unlikely to invest in overseas private equity, so most of the permitted allocation, or about USD 2.5 billion, is expected to go into the stock market through third parties such as exchange-traded funds or mutual funds. 

Investment Decision Hinges on Rupiah Stability 

Indonesia is preparing regulations on asset-liability management for pension funds, which will serve as the legal basis for the fund to invest overseas, Edwin said. 

The fund is also in talks with stakeholders to allow pension funds to invest in gold, as well as a clause permitting loss-cutting under certain terms and conditions, he added. 

Asked when the rules are likely to take effect, Edwin said it was probably only when the rupiah had stabilized, as overseas investments that increase demand for foreign currencies could put further pressure on the currency. 

“Even if we were already allowed to invest overseas, I think we would wait until the rupiah can be considered stable,” he said. 

One of Asia’s worst-performing currencies year-to-date, the rupiah has depreciated more than 3% against the US dollar to around IDR 16,700. 

Financial market investors have flagged concerns over Indonesia’s fiscal discipline following the dismissal of respected finance minister Sri Mulyani Indrawati. 

Source: Reuters