BizCLIR

The efficiency and security of trade-related flows of people, both in and out of a country as well as within a country, are important to facilitate international and domestic business. More specifically, the ability for legitimate importers, exporters, investors, and their related facilitators (e.g., attorneys, accountants, business development professionals) to move across borders and through a country efficiently as they trade their goods and services is necessary to ensure the smooth flow of commerce. However, it is also important for countries to provide security at border crossings and to protect such businesspersons and others. They must strike a balance between the needs of business and the needs of national security.

As with the trade-related flows of money, in a well-functioning trading system, the movement of short-term visitors is often a minor administrative detail in the trading scheme. Yet in some countries with overly restrictive security policies, entry into and movement within a country creates logistical and financial obstacles for legitimate traders, and can act as a deterrent to trade. On the other hand, flows of people for illicit purposes can lead to instability in the trading system as a whole. Therefore, security policies and procedures are necessary to prevent entry of persons, such as terrorists and other criminals, who pose a danger to society.

Overall, the state of immigration flows in, out, and through Indonesia is adequate to meet current business needs. Generally, the legal framework is in line with international standards. However, immigration-related institutions and processes remain needlessly cumbersome and time-consuming. Subsequent to the troubles in East Timor of 1999 and the terrorist attacks in Bali of 2002, Indonesia made changes to those institutions and processes, and concern arose that travel in and out of Indonesia would slow considerably. In an effort to offset this possible consequence, the government responded by implementing a “visa on arrival” (VOA) process in which aliens from certain countries are not required to obtain a visa prior to entry into Indonesia. Reports are that this process has facilitated both short-term business and tourist travel. However, more remains to be done, such as with respect to supporting Indonesian migrant workers.

The number of immigrants to Indonesia has remained relatively constant, both by total number and by country of origin. The average annual number of foreign visitor arrivals from 1996-2005 has been, on average, just under five million per year, with a high of 5.3 million in 2004 and a low of 4.6 million in 1998. Since 2001, by country of origin, Singaporeans have been the largest group, consistently comprising 28–30 percent of total immigrants per year. The United States has provided a consistent annual average of three percent of the foreign entrants during that same period.