The Indonesian government has introduced new regulations raising the cost of changing citizenship, but a public policy expert says the policy is too narrow and fails to address the country's broader talent retention challenges.
Under Government Regulation Number 30 of 2026, signed on 2 July, the fee for Indonesian citizens renouncing their nationality has risen from Rp1 million (or around AUD 80) to Rp5 million (or around AUD 400), while the cost for foreign nationals acquiring Indonesian citizenship has increased from Rp50 million (or around AUD 4,000) to Rp75 million (or around AUD 6,000).
Prof. Gabriel Lele, a public policy expert at Universitas Gadjah Mada in Yogyakarta, said the policy is "very partial," arguing it treats citizenship transfers purely as a revenue-raising measure rather than part of a comprehensive talent management strategy.
The fee increases, Prof. Lele said, reflect the government's shrinking fiscal capacity, with the national budget stretched thin by large-scale programmes such as the free school meals initiative (MBG) and the Koperasi Desa Merah Putih scheme.
The majority of cross-border migration involves skilled professionals, including researchers, academics and industry specialists, rather than family-based cases, Prof. Lele said. The current fees are far too low to discourage state-funded scholarship recipients from relocating abroad, suggesting those who benefited from government-funded education through LPDP scholarships should face costs reflecting the state's investment, potentially around Rp2 billion, he added.
Conversely, Prof. Lele said, charging foreign professionals such as academics Rp75 million to become Indonesian citizens is counterproductive, arguing such talent should be welcomed at no cost.
Prof. Lele called for a more nuanced, scenario-based approach involving multiple ministries, rather than leaving the policy solely to the Ministry of Law.Misalnya, orang Indonesia yang ingin pindah kewarganegaraan ke negara lain, tarifnya naik dari Rp1 juta menjadi Rp5 juta rupiah. Sedangkan orang asing yang ingin menjadi warga negara Indonesia, tarifnya juga naik dari Rp50 juta menjadi Rp75 juta rupiah.
Listen to the full interview on the SBS Indonesian podcast.
