Indonesia aims to attract wealthy investors with its new golden visa program, but analysts have warned that the policy could invite cross-border money laundering and drive up housing prices.

The visa scheme was launched last Thursday, making it easier for foreign nationals to invest and contribute their wealth, skills, or expertise to Southeast Asia’s largest economy, Nikkei Asia reported.

Individual investors must establish a company valued at US$2.5 million to obtain a five-year visa or $5 million for a ten-year one.

Alternatively, they can secure a 5-year or 10-year permit by placing funds of at least $350,000 and $700,000, respectively. The money can be placed in deposits or used to purchase Indonesian government bonds and public company stocks.

Another category of golden visa allows individuals to stay for five years by making a deposit of $130,000 in a government-owned bank and buying an apartment valued at $1 million or above.

For corporate investors, a $25 million investment is required to secure five-year visas, and a $50 million investment is needed for ten-year visas, applicable to their directors and commissioners.

The program would have a multiplier effect on the country, enhancing capital gains, job creation, and technology transfer, Asia News Network quoted Indonesian President Joko Widodo as saying last Thursday.

Silmy Karim, head of the country’s immigration agency, said that the new visas will create opportunities for foreign companies already established in Indonesia.
They will also reduce the presence of digital nomads and long-term visitors who contribute little to the local economy while living in tourist destinations like Bali on tourist visas.

Since launching the pilot program for the permits last year, Indonesia has issued nearly 300 golden visas, gaining $123 million in investments.

Nonetheless, experts have raised concerns over potential threats of cross-border money laundering and other criminal activities, as well as housing price inflation.
Many countries, such as Canada, the U.K., and Singapore, have discontinued similar investment visa programs after determining that they do not generate employment and may serve as a way to park speculative money, as reported by Reuters.

“The countries that have revoked the golden Visa policy have anti-money-laundering measures that are stricter than Indonesia, and even they think that the golden Visa will enable cross-border money laundering and illegal investments,” Bhima Yudhistira, executive director at the Jakarta-based Center of Economics and Law Studies (Celios), told SCMP.

He added that the golden visa alone may not have an immediate impact as investors are adopting a “wait-and-see” approach during the government’s transition period, with the current president due to step down in October.

Portugal’s golden visa program previously permitted foreigners to obtain residency by purchasing property, which led to a rise in property and rent prices. It amended its policy earlier this year, removing real estate investment as a route to residency.

Nailul Huda, an economist with Celios, told SCMP: “If golden visa holders can own land in Indonesia, that could be a threat to Indonesian citizens. Land ownership could eventually shift from Indonesians to foreigners, and it could lead to protests from residents.”

“[Authorities] must carefully select and evaluate the contribution [of each applicant],” Asia News Network quoted him as saying.

In response, Silmy Karim said that his office will implement a stringent vetting process for all golden visa applicants, which will include coordination with Interpol and the Financial Transaction Reports and Analysis Center.

Source: Vnexpress

Korea is seeing an accelerated increase in its exports, prompting speculation that it could overtake Japan in exports for the first time this year.

The gap in total value of exports between the two countries shrank to a record low of $3.5 billion in the first half of the year. It previously amounted to about $160 billion in 2018 and then nearly halved to $85 billion in 2023.
Such a narrowed gap comes as Korea’s outbound shipments have been on the upswing, whereas Japan’s have been stagnant.

For instance, Korea’s exports in the first six months of this year reached $334.8 billion, up 9 percent from the previous year.
Over the cited period, Japan’s exports slid 3.6
percent to $338.3 billion.

In July, Korea extended its winning streak in exports for the 11th consecutive month as outbound shipments jumped 13.9 percent year-on-year to $57.4 billion, according to data from the Ministry of Trade, Industry and Energy.
Semiconductors and other key sales items are driving robust exports.

Exports of chips rose 50.4 percent year-on-year to $11.2 billion in July, marking an increase for the ninth straight month and maintaining a growth rate above 50 percent for the fourth consecutive month.

Outbound shipment of display products went up 2.4 percent year-on-year, while those of computers and mobile devices climbed 61.6 percent and 53.6 percent, respectively.

“Under the circumstances, Korea certainly has a chance to overtake Japan in exports as the prospect remains bright,” said Lee Ji-pyeong, a professor at Hankuk University of Foreign Studies.

He noted that Korea’s exports are poised to set a record of $700 billion this year, whereas Japan’s have been decreasing after peaking at $823.6 billion in 2011.
In terms of rankings of the world’s largest exporters, Korea was in 12th in 2008 and then moved up to seventh in 2010 and again to sixth in 2015.

It has been moving between sixth and eighth ever since.
Meanwhile, Japan has remained unchanged in fifth place since 2019 after being overtaken by the Netherlands in the same year.

“And Korea outpacing Japan in exports means it can claim the No. 5 spot if it reaches export goals as planned for this year,” Lee said.
Trade experts deem that the Japanese central bank’s shift to a hawkish monetary policy after sustaining a weak yen for years can positively influence Korea’s exports.

Source: Korea Times

U.S. home sales should rebound following November’s presidential election, regardless of who wins, Douglas Elliman, a broker at Noble Black, told CNBC.

While luxury areas such as Miami and the Hamptons in New York have been busier than usual, there’s been pent-up demand for homes in the broader residential market, said Black, who has more than $3 billion in sales and has brokered several record-breaking New York deals.

“People who have kind of stood on the sidelines; they seem to be waiting until the election has settled,” Black said. “It doesn’t really matter who wins the election, but once that’s settled people come back into the market.”

As of Aug. 8, the average 30-year fixed-rate mortgage stood at 6.47%, its lowest rate since May 2023. If that downward pressure continues, it could bring buyers who are more sensitive to rate changes back into the market, Black said, as areas with low and no income taxes, such as those in North Carolina and Texas, also benefit, according to Black.

“All of the indications are that we’re going to have a good third quarter and especially fourth quarter when some things are settled,” after the Nov. 5 election between Vice President Kamala Harris and former President Donald Trump.

Source: CNBC

The Pinnacle Residence, the premier luxury residence along Monivong Boulevard had successfully held the topping-out ceremony for building 1. This event not only marks a significant milestone in the development construction but also signifies the beginning of a new chapter in high-end living in Phnom Penh, bringing future residents one step closer to their ideal lifestyle.

Mr. Edward Lee, CEO of The Pinnacle Residence, Mr. Xiao Haibo, Deputy General Manager of Shanghai Baoye (Cambodia) Co., Ltd., along with the project engineering team, media representatives, and other distinguished guests, attended the topping-out ceremony, witnessing this historic moment together.

At The Pinnacle Residence topping-out ceremony, Mr. Edward Lee expressed his heartfelt gratitude to the project team for their hard work and dedication, while setting high expectations for the remaining construction phases. He emphasized the development’s significance in enhancing Phnom Penh’s skyline and providing an unparalleled living experience for the city’s elite. Mr. Edward Lee encouraged everyone involved to continue their efforts, aiming for the early completion of The Pinnacle Residence to deliver a result that will exceed the expectations of future residents.

Mr. Xiao Haibo mentions in his speech regarding The Pinnacle Residence timely completion of the topping-out for building 1 was the result of the collective efforts of the entire project team. He assured that moving forward, the project team would continue to strive for excellence, adhering to high standards of efficiency and quality. Mr. Xiao Haibo emphasized thecommitment to rigorously control construction quality and meet all the development requirements, with the goal of achieving comprehensive development delivery in the fastestpossible time.

In the presence of distinguished guests, the topping-out ceremony was led by Mr. Edward Lee, CEO of The Pinnacle Residence; Mr. Lu Fan, General Manager of the Sales & Marketing Division; and Mr. Feng Shusong, Project Director, along with Mr. Xiao Haibo, Deputy General Manager of Shanghai Baoye (Cambodia) Co., Ltd., and Mr. Zhang Dingjun, Project Manager. This ceremonial event marks the beginning of a new phase for The Pinnacle Residence development.

To own a luxury landmark residence at The Pinnacle Residence, kindly contact: 023951666 formore information.

The Pinnacle Residence

Strategically located at the key intersection of Preah Monivong Boulevard, Yothapol
Khemarak Phoumin Boulevard, and Hun Sen Boulevard — The Pinnacle Residence boasts a
prime location in the city’s business core, providing both lively urban living and easy access to
transportation.

As Phnom Penh’s first CLD (Central Living District) city complex, The Pinnacle Residence
features a diverse mix of high-end apartments, flagship commercial centers, Grade A office
spaces, and an international 5-star hotel, Raddison Hotel. It is the first integrated luxury mix-use complex in the city which comprises of “residential, office, hotel, and retail” into one international high-end complex. The development boasts premium amenities, including a hotel-style lobby, a 900 ! Sky Bar, a 700 ! infinity pool, and a 486 ! fitness center, all
tailored to provide a comprehensive living and social experience for its residents.

Building 1 is a new landmark in Phnom Penh, offering a blend of “hotel, office, and
residential apartment” functionalities. The top floor features a 900 ! Sky Bar where city elites can enjoy luxurious living while taking in vibrant cityscapes and the scenic views of the Mekong River.

The Pinnacle Residence features the Radisson Red and Radisson Blu Hotel & Residences.
The Radisson Red Hotel, inspired by the color red, follows the brand’s “ENJOY IT! – Boundless Fun” philosophy, featuring innovative and bold designs that move away from traditional hotel layouts. The hotel offers a blend of traditional and modern design, exceptional service, luxurious rooms, and top-tier facilities such as an all-day dining restaurant, a bar, a swimming pool, a gym, and a yoga room, providing a high-end and comfortable experience for global
business travelers.

The project includes Cambodia’s first Radisson Blu Hotel & Residences, offering a range of
units from 29 ! to 196 !, including studio apartments, luxurious suites, and premium
residences, providing unparalleled living experiences for city elites. Managed by Radisson,
these apartments offer stable rental income, maximizing the value for owners and providing flexible options for both personal living and investment.

As The Pinnacle Residence’s building 1 reaches this significant milestone, it signifies a
step closer to a promising future. The Pinnacle Residence remains committed to high quality and exceptional service, aiming to offer an ideal living space for city elites and delivering exceptional investment returns for every owner.