Retirement Planning For Indonesia

INDONESIA

Indonesia is an archipelagic country of 17,508 islands, of which 6,000 are inhabited. The country’s strategic sea-lane position fostered international trade, and the boundaries of Indonesia represent the 20th century borders of the Dutch East Indies. The country covers 1,904,569 square kilometres, making it the 15th largest country in the World.

It has 300 distinct ethnic groups who collectively speak 742 languages and dialects. The largest ethnic group are the Javanese, who make up 42% of the population. Indonesia is home to approximately 258 million people (the 4th most populous globally). The vast majority of the population are Muslim.

The Head of State is his Excellency, President Susilo Bambang Yudhoyono

Climate

Tropical, with two distinct monsoonal wet and dry seasons. Humidity is general high, although the wettest regions tend to be the mountainous areas of West Sumatra, West Java, Saluwesi and West Papua.

Currency

Indonesian Rupiah (IDR)

Communications

Modern, high quality system, especially in urban areas. The international code is +62 and the internet code is .id

Healthcare

Medical services in Indonesia are less developed than in Thailand and Malaysia. Whilst major cities and tourist centres have public and private Hospitals, the standard of treatment is below what is available in Australia. More information is covered in our healthcare section.

Capital – Jakarta

Indonesia’s capital is located on the Northwest coast of Java, the World’s most populous island. Jakarta is home to over 10 million people (with 28 million in the greater metropolitan area). It is the country’s economic, political and cultural centre.

Getting there

The city is served by two airports, one international, Soekarno-Hatta International Airport (CGK), the other domestic, Halim Perdanakusuma Airport (HLP). Whilst Australia has regular direct flights to Jakarta, the main gateway for most Australians to Indonesia is through Denpasar, on the Island of Bali.
Garuda and Qantas fly from Sydney directly to Jakarta around 4 times a week. Garuda fly from Melbourne and Perth directly 4 times a week. All other Australian cities access Jakrta indirectly.

Key Retirement Locations

Bali

One of Australia’s favourite tourist destinations is increasingly becoming a favoured place for retirement. Retirees have the full spectrum of options, whether it’s a sea change along a multitude of glorious beaches to a tree change in around cultural heartland of Ubud.

Bali covers an area of 5,780 square kilometres, and is home to over 4.2 million people. Over 83% of the population adhere to Balinese Hinduism, followed by 13% Muslim and around 2% Christianity.

80% of Bali’s economy is tourism related, which has made it one of Indonesia’s wealthiest regions.

Denpasar (DPS)

The Balinese capital has a population of around 800,000 people and is the island’s commercial hub. It is the primary gateway for Australians into Indonesia, who arrive through Ngurah Rai International Airport (DPS). The surrounding tourist areas, which hug the coastline, are home to a vast array of resorts, hotels, restaurants and entertainment. For those retirees who dream of a beach lifestyle close to the action, there are a multitude of options. To the north there is Kuta, Legian and Seminyak. To the east there is Sanur and to the south, the newer developments of Nusa Dua and Pecatu.

The popularity of Bali means that Australians have a broad selection of transport alternatives. Garuda, Air Asia X, Virgin Australia and Jetstar have daily direct flights from Sydney to Denpasar. Garuda, Tigerair, Jetstar and Air Asia X fly from Melbourne daily. Virgin Australia and Jetstar fly daily from Brisbane. Tigerair and Jetstar fly daily from Adelaide. Jetstar and Indonesia Air Asia fly from Darwin approximately 3 times a week. Jetstar fly 3 times a week from Cairns and Townsville, Virgin Australia fly once a week from Port Hedland, and finally Jetstar, Garuda, Indonesia Air Asia and Tigerair have daily flights from Perth.

Ubud

Ubud is located amongst rice paddies and steep ravines in the central foothills of the Gianyar regency. Approximately 24kms from Denpasar (1 hour drive), it has a population of 30,000 people and is a highly popular tourist destination, based not only its beautiful surroundings, but also on culture and spirituality. The town has developed an active arts and craft community, and the cooler mountainous environment makes for a wonderful tree change retirement.

Other favourites

Lombok (LOP)

Lombok is an island that forms part of the Lesser Sunda Islands, with the Lombok strait separating it from Bali. It has a total area of 4,514 square kilometres, and a population of 3.3 million people. The west coast is home to most tourist destinations and its beautiful beaches, culture and mountains make it a favourite amongst more adventurous retirees.

The island has regular flights between itself and Denpasar (40 minutes), plus Fastboat services and Public Ferries to Bali.

Lifestyle

INDONESIA LIFESTYLE

Retiring to Indonesia (Bali)

When considering retirement to another country, you want everything to go smoothly and know your finances are being managed in a way which maintains your retirement lifestyle.

You also want to know that you have a team you can work with to make your dream a sustainable reality. Bali offers a broad range of lifestyle choices, and Retire to Asia recommends that you explore the country to see and feel what’s right for you. Sometimes retirees will begin their retirement in major expat locations, such as the beaches around Denpasar or perhaps further north at Ubud, before moving into lesser known areas.

Better quality of life in retirement

The cost of living in Bali is significantly cheaper than in Australia. Quite simply, your money goes so much further, providing you with the opportunity to have a quality of life which is typically only available to the wealthy in Australia. This is one of the key motivations for retiring to Asia.

The exact savings will vary on where you decide to retire, and the type of lifestyle you choose to live.

For example, it is generally cheaper to live in one of the more rural areas than in the main expat areas. Similarly, you average grocery bill will be less if you buy local products rather than foreign imported foods. However, all things being equal, the ‘cost of living’ savings when compared to Australia are very significant.

Comparing the cost of living in Bali to Australia

In this table, Retire to Asia compares the average percentage saving a retiree can expect on a range of products & services in Bali with the cost of those products & services in Sydney:

Item	Bali
Consumer Price	-58%
Meal for 2 (3 Courses)	-82%
Beer (Domestic)	-70%
Coffee	-29%
Bottle of Water	-83%
Groceries (Local)	-52%
Transport	-95%
Utilities (Electric/Water/Garbage)	-47%
Mobile (Pre-Paid)	-84%
Internet (Unlimited Cable/ADSL)	-33%
Cinema Ticket	-76%
Rent	-73%

Source: Numbeo

Settling into your new lifestyle

Whilst it’s exciting to retire to a dream location, either temporarily or permanently, there are a number of tasks that need to completed, and arrangements that need to be made.

Retire to Asia provide a broad range of services to assist you with this exciting move. These services include the following:

Simple and easy retirement visas

Retire to Asia assist with the application for you visa and help you through the process.

Access to the best healthcare, insurance and financial services

Retire to Asia provides advice and through our partner network, ensure your needs are met at the most cost effective price.

Assistance with travel and relocation arrangements

Retire to Asia can assist and guide you through the requirements to move not only yourselves, but also your possessions, and any pets you may have.

We’ll help get you settled with our ‘Welcome to Bali’ service

Retire to Asia provides contacts for local clubs, guidance on property, information on local doctors, dentists, mobile phones and the internet.

Ongoing management of your finances to ensure peace of mind

Retire to Asia’s financial group will ensure your retirement savings provide you with a reliable income stream. We assist with budgeting and keep you updated to changes to superannuation that may impact you. Retire to Asia can also manage your investment portfolio and even assist with opening an Indonesian bank account.

We’re always here to help

Retire to Asia provides ongoing support and advice over the phone, or through our website and newsletters. We are here to assist you.

Healthcare

The Indonesian government offers treatment to all nationals. However, this treatment can be of a poor quality in local hospitals, and of very poor quality to non-existent in very rural areas.

Whilst a short stay in an Indonesian public hospital should pose no problem for simple health related problems, serious or critical medical emergencies may pose greater problems due to a lack of technology, facilities and trained medical workers at many publicly run facilities.

Therefore, Retire to Asia strongly recommends retired expats in Indonesia are located in or near an urban area that has access to better medical care. It is also recommended that expats have international private medical insurance, or access to a pool of funds that is able to cover the cost of more serious medical treatment, which may include evacuation to a better medical facility in a different country.

For routine complaints you can find small medical clinics in most towns. These clinics are usually walk-in however you should expect long wait times and be aware that communication will probably be an issue with most medical staff not being able to speak English.

Medial facilities in Indonesia are divided into public and private sectors (including ‘group practice medical clinics’). Typically, public hospitals are avoided by those that are able to afford the treatment of a private facility, with many Indonesians with means heading to either Singapore, Malaysia or even Australia for more serious medical treatment.

Public Healthcare System

Government run hospitals and facilities do not pay their medical staff well, which in turn lead to difficulties in attracting quality health workers.

In the major centres such as Jakarta and Bali the public hospitals are of a better quality. It is recommended that expats go to these better local facilities should they have a more severe medical emergency and a private facility is not an option.

Public facilities and specialists are open to all foreigners. But if you do go to a public hospital you will need to either pay up front or before you leave the hospital. If you do have international private health insurance, please check with your provider whether they cover the treatment at the chosen facility. Due to the lack of foreign speaking medical professionals working in the public system, it is recommended that you take a local interpreter with you should you need to attend a local facility.

Private Healthcare

Private hospitals and clinics are the best options for expats when looking for the best healthcare in Indonesia. This however, comes at a cost that is usually significantly higher than the public medical system.

While the private facilities allow patients to pay out of pocket, they will usually expect a full payment of services before the patient leaves. As with the public health facility, if you have international private health insurance please check that the provider will pay for the treatment at the facility chosen.

Get a quote for International Private Health Insurance >>

Group Practice Medical Clinics

In major centres such as Jakarta and Bali, expats mostly utilise the group practice medical clinics as their primary medical facility for all minor medical outpatient needs. As they cater to expats and middle-class Indonesians, they provide a very high standard of care to their patients’ needs and either charge an annual membership fee, or you may pay on an ad-hoc basis as services are needed. These clinics are less expensive than private hospitals and are often at the same standard of care for minor to moderate medical procedures.

The goal of these facilities is to provide comprehensive medical care. They have a wide range of specialists and facilities usually extend to laboratory, radiology, pharmacy, dental, physiotherapy, ambulance and emergency room service.

Visa

Summary of Indonesian retirement visa requirements

Indonesia has a retirement visa, which is also known as Renewable Stay visa.

To qualify you must be 55 years of age. Applicants must show proof of health insurance in either Australia or Indonesia, and agree to employ an Indonesian maid. In addition, you must meet a set of financial requirements.

How long is the Visa valid and can it be extended?

The visa is valid for 1 year and can be extended, supported by evidence that you meet the financial requirements outlined above.

Is the visa multiple entry?

Yes, you can leave and re-enter the country as many times as you like.

Can I work whilst I’m in Indonesia?

No, work of any kind is prohibited.

Property

Introduction to Property in Indonesia (Bali)

Buying property in Bali

The process of purchasing a property in Bali is relatively simple, however there are some key elements which need to be understood first. Retire to Asia can assist you with these matters.

At a top level, foreigners cannot own ‘freehold’ property, which includes land, villas, houses or apartments. However, foreigners can acquire a ‘leasehold’ title to a property. This is similar to strata title but is usually for 25 years or less. It can be extended to another 30 years, for a maximum of 55 years in total when it would revert to the original owner.

There are also ways for foreigners to purchase ‘freehold’ using an Indonesian Nominee or Company. Retire to Asia recommends taking great care before going down this path and can assist with advice.

Renting property in Bali

Rental opportunities are broad and numerous. There is a wide range of properties available to suit all styles of life, whether it be on one of the beaches in and around Denpasar, or perhaps among the hills and beautiful landscape of Ubud.