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Legal Requirements and Procedures for Foreigners to Work in Indonesia

Legal Requirements and Procedures for Foreigners to Work in Indonesia
Legal Requirements and Procedures for Foreigners to Work in Indonesia

Discover the ins and outs of working in Indonesia as a foreign national – from legal requirements to permit procedures.

Indonesia is currently growing as a globally regarded place to look for work, especially in Jakarta which remains the epicentre of the country’s economy. Not only local residents, but foreign nationals are also interested in looking for work in Indonesia. The latter can work in Indonesia to fill certain positions according to their competency and capabilities.

Having said that, foreign nationals must meet special requirements to be able to work in Indonesia. Henceforth, before starting to look for work in Indonesia, it’s a good idea to know several ways — and also, the legal work conditions — for foreigners in Indonesia.

Based on Law Number 13 of 2002 concerning Employment, the definition of foreign workers is foreign nationals who possess work visas in Indonesian territory. The requirements for them to work in Indonesia are regulated in Minister of Manpower Regulation Number 8 of 2021 Article 4 concerning Implementing Regulations of Government Regulation Number 34 of 2021 concerning the Use of Foreign Workers. The regulations state different types of foreign nationals who are legally eligible to work in Indonesia, as follows:

  • Foreign nationals who have educational standards that are appropriate to the capacity of the position to be held;
  • Foreign nationals who have a competency certificate or work experience document of at least five years according to the requirements entailing the desired position or job title;
  • Foreign nationals who can provide a valid statement to transfer expertise to accompanying Indonesian workers in the form of a report on the implementation of education and training;
  • Foreign nationals who have worked for at least six months and, thus, are required to have an NPWP (Tax Identification Number);
  • Foreign nationals who have worked for at least six months and possess proof of participation in National Social Security or certain insurance policies.

In addition, foreign nationals who work in Indonesia must have a Permit to Employ Foreign Workers (IMTA) document. The following, therefore, is the procedure for acquiring an IMTA:

1) Companies that will hire foreign nationals as their employees are required to have a Plan for the Use of Foreign Workers (RPTKA). There are several types of RPTKA, namely:

  • Temporary RPTKA for individuals who will work a maximum of six months and will not be extended further. Temporary RPTKA can be given to foreigners who work on (short-term) film projects, for example;
  • RPTKA for workers with a minimum duration of six months and a maximum of two years. This type of RPTKA can be extended;
  • RPTKA non-DKPTKA (Compensation Fund for the Use of Foreign Workers) which is given to workers with a minimum work duration of two years and can be extended; and
  • RPTKA KEK (Special Economic Zone) for workers with a minimum employment duration of five years and can be extended.

2) Especially for foreign nationals who serve as directors or commissioners, the KEK RPTKA document will be issued once and is valid until their director or commissioner status ends;

3) Afterwards, time to carry out the Pre-IMTA procedure. This procedure replaces the TA-01 procedure which applies to work visas. The foreign nationals in question will be obliged to provide information regarding their duration of work and stay in Indonesia;

4) The payment step of the Compensation Fund for the Use of Foreign Workers (DKP-TKA) must be conducted by the company that recruits the foreign nationals in question. The nominal DKP-TKA that must be paid by the company is US $100 per month with an advance payment policy;

5) After the IMTA is issued, the foreign nationals can apply for a Limited Stay Visa (VITAS). The VITAS’ validity period follows the maximum duration of stay according to their job position and title;

6) Process the Temporary Stay Permit (ITAS) or Limited Stay Permit (KITAS) documents. The ITAS/KITAS usage period is in accordance with the VITAS’ validity period;

7) Lastly, apart from their passport and the previously stated documents, the foreign nationals in question need to prepare their temporary resident cards, family cards, marriage documents (if any), and other supporting documents.

After all IMTA documents and visas have been successfully issued, the foreign nationals in question can, at last, work legally in Indonesia.

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