Introduction on how Indonesia’s dynamic economy is attracting global talent, and the key visa and permit requirements to be aware of when hiring foreign employees.
Hiring foreign employees in Indonesia requires a valid work visa, which must be obtained before the employee begins working in the country. The two main types of visas are the KITAS (Temporary Stay Permit) and the IMTA (Expatriate Work Permit). Each visa serves a distinct purpose and is crucial to ensuring that foreign employees are legally employed in Indonesia.
The KITAS is a temporary residence permit that allows foreign nationals to stay and work in Indonesia for a specific period. It is one of the most commonly used visas for foreign workers and is typically valid for six months to two years, depending on the job contract and visa category.
Foreign professionals working in skilled positions such as engineers, managers, or specialists are eligible for the KITAS. This visa is also required for individuals working for Indonesian companies, as well as for expatriates employed by foreign businesses with local operations in Indonesia.
The application process for the KITAS involves several steps, beginning with the submission of a Foreign Worker Utilization Plan (RPTKA) by the employer. Once the RPTKA is approved, the employer can apply for the work permit and KITAS on behalf of the foreign employee.
The IMTA is the legal work permit that must be obtained before an expatriate can legally work in Indonesia. The IMTA is issued by the Ministry of Manpower and is linked to the foreign employee’s specific job role and employer. Without an IMTA, a foreign employee cannot work legally in Indonesia.
Similar to the KITAS, the IMTA is issued to foreign professionals in specialized roles. The applicant must demonstrate that they have the necessary skills and qualifications for the job, and the employer must show that the position cannot be filled by a local worker.
The employer must first obtain an approved RPTKA before applying for the IMTA. Once the IMTA is issued, the employee can proceed with the application for their KITAS.
Hiring foreign employees in Indonesia comes with specific responsibilities for employers. These responsibilities are designed to ensure that local workers are given priority, and that foreign workers are only employed when no suitable local candidate is available.
The RPTKA is a critical document that every employer must submit before hiring a foreign employee. The RPTKA outlines the reasons for hiring a foreign worker and specifies the position, job description, and duration of the employment contract.
The RPTKA serves as a way for the Indonesian government to regulate the employment of foreign workers. Employers must demonstrate that the position being filled by the foreign employee cannot be filled by a qualified Indonesian candidate. The RPTKA must be approved by the Ministry of Manpower before the employer can proceed with the work permit and visa application process.
To submit an RPTKA, the employer must provide details about the job role, the duration of the employment, and the skills required for the position. Additionally, the employer must commit to training a local employee to eventually take over the role in the future.
Once the RPTKA is approved, the employer can begin the process of applying for the KITAS and IMTA for the foreign employee. Both the KITAS and IMTA are essential documents that allow the foreign employee to legally reside and work in Indonesia.
The employer submits the required documentation to the Ministry of Manpower, including proof of the employee’s qualifications, the employment contract, and the RPTKA approval. The application process typically takes several weeks, depending on the complexity of the case and the efficiency of the government agencies involved.
Employers are responsible for ensuring that the application process is completed correctly and that all necessary documents are submitted. They are also required to monitor the employee’s visa and work permit status and ensure that any renewals or extensions are processed before the documents expire.
The process of obtaining a work permit in Indonesia can be lengthy and requires careful attention to detail. Below is an overview of the key steps involved in the application process.
The employer submits the RPTKA to the Ministry of Manpower for approval. This document outlines the reasons for hiring a foreign worker and must be approved before the work permit process can begin.
Once the RPTKA is approved, the employer applies for the IMTA. The IMTA is linked to the specific job role and allows the foreign employee to work legally in Indonesia.
After the IMTA is issued, the employer can apply for the KITAS. The KITAS allows the foreign employee to reside in Indonesia for the duration of their employment contract.
Employers must provide several supporting documents, including the employee’s passport, proof of qualifications, and the employment contract. Additional documents may be required depending on the specific visa category.
The entire process, from submitting the RPTKA to receiving the KITAS, can take anywhere from 4 to 8 weeks, depending on the complexity of the case and the responsiveness of the government agencies involved.
The costs associated with obtaining a work permit and visa in Indonesia vary depending on the visa category and the length of stay. Employers are typically responsible for covering these costs, which can range from IDR 10 million to IDR 30 million (USD 700 to USD 2,000) depending on the specifics of the employment arrangement.
When hiring foreign employees in Indonesia, compliance with immigration and labor laws is essential. Failure to comply with these regulations can result in fines, penalties, or even the deportation of the foreign employee.
Foreign employees and their employers must comply with all immigration and labor regulations in Indonesia. This includes ensuring that the employee has the correct visa and work permit, that the RPTKA is approved, and that all documents are kept up to date.
Foreign workers must have a valid KITAS and IMTA before starting work in Indonesia. Working without the correct documentation can lead to fines or deportation.
Employers must adhere to Indonesia’s labor laws, which include ensuring that foreign workers are treated fairly and in line with local workers. Employers are also required to provide benefits such as health insurance and adhere to local wage standards.
Certain industries in Indonesia are subject to quotas on the number of foreign workers they can employ. These quotas are designed to protect local workers and ensure that foreign workers are only hired for roles that cannot be filled by Indonesian citizens.
Some industries, such as construction and manufacturing, have stricter regulations on the employment of foreign workers. Employers in these industries must be aware of the specific rules and regulations that apply to their sector.
Navigating the complexities of hiring foreign employees in Indonesia can be challenging, but AYP is here to help. As a trusted provider of Employer of Record (EOR) and Professional Employer Organisation (PEO) services, AYP takes care of the entire work permit and visa application process on behalf of employers. From submitting the RPTKA to managing the KITAS and IMTA applications, AYP ensures full compliance with Indonesia’s immigration and labor laws. This allows businesses to focus on their core operations while we handle the administrative burden of hiring foreign talent.
With AYP’s services, you can rest assured that your foreign employees are hired legally and in full compliance with all local regulations. Whether you’re hiring one expatriate or building a full team, AYP provides expert guidance and support every step of the way.
