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What law? Digital nomad brouhaha raises legal vacuum concerns
A heated online debate that led to the deportation of an American digital nomad raises concerns that Indonesia still lacks laws that regulate foreigners who work here remotely for companies based abroad, especially in terms of staying permits and taxation.
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Foreign tourists walk along Berawa Beach in Badung, Bali, on June 19, 2020. (Antara/Nyoman Hendra Wibowo)
T
he recent brouhaha between an American woman and Indonesian netizens on Twitter has shed light on the fact that the country has yet to have clear regulations on digital nomads, especially in terms of immigration and taxation.
Indonesian internet users accused 28-year-old Kristen Gray of making money from social media posts suggesting that foreigners could move to Indonesia and live a luxury lifestyle on the cheap amid the global health crisis and strict travel restrictions. The Bali Immigration Office eventually deported her for “spreading information that unsettles local residents”, including painting the island as “queer-friendly”.
Digital nomads are flourishing in Indonesia with the rise of the digital economy. Bali is among the popular destinations for foreign nomads who like to work while traveling, aside from Jakarta and Yogyakarta.
However, Indonesia has yet to have immigration regulations that specifically regulate foreign digital nomads, creating potential legal loopholes that allow them to extend their stay in the archipelago.
Bali Immigration Office head Eko Budianto said most digital nomads on the resort island used a single-entry visa to come and stay in the country.
Normally, this visa is valid for 60 days and can be issued for people wanting to visit Indonesia for various purposes, including holidays. The single-entry visa is not valid for individuals intending to work for an Indonesian company, which would require them to have a temporary (KITAS) or permanent stay permit (KITAP).
The 2011 Immigration Law, however, does not stipulate a requirement for foreign visitors who work remotely for offshore clients to obtain a KITAS or KITAP.
