Indonesia Work Permit and Employment Rules in 2025
Indonesia, the largest economy in Southeast Asia is a dynamic and rewarding place to work as an expatriate, though, it would be impossible to obtain a right to live and work there without strictly following the Employment Rules in the Ministry of Manpower (Kemenaker) and the Directorate General of Immigration.
The RPTKA Approval and Company Sponsorship Foundation
The process of any foreign worker (TKA – Tenaga Kerjee Asing) starts with an application by the sponsoring firm to acquire a RPTKA ( Rencana Penggunaan Tenaga Kerjee Asing) also known as Foreign Manpower Utilization Plan.
Employer/Sponsor Requirements
The Indonesian firm (PT or PT PMA) has to demonstrate that the skills of the foreign employee are required, and they cannot be easily found in Indonesia.
- RPTKA Submission: The Sponsor Company provides online application to the Ministry of Manpower with the details of the job vacancy, the length of time and the qualification of the foreign worker.
- Local Counterpart and ToK: The company has to invest in a Transfer of Knowledge (ToK) program, by assigning an Indonesian counterpart to the TKA to train him.
- Compliance: The company should be registered legally and pay its tax duties (NPWP)
Stake the DPKK (Foreign Worker Compensation Fund)
The sponsoring employer is required to make the mandatory Foreign Worker Compensation Fund (FWCF) referred to locally as the DPKK (Dana Kompensasi Penggunaan Tenang Kerja Asing) before the work authorization is granted in the fullest.
- Compulsory Fee: The DPKK is now USD 100 per month on each foreign worker.
- Advance Payment: This is a fee that is to be paid upfront throughout the approved period of RPTKA (e.g., $1,200 in case of a 12-month period).
- Purpose: the Indonesian government uses the money to fund the vocational training and skills development of the local people.
- Important Prerequisite: The Ministry of Manpower must first pay the DPKK before providing final authorization of the work Notification.
Acquiring the Limited Stay Visa (VITAS)
After the RPTKA is granted and the DPKK paid, the government grants a Telex Visa authorization. This gives the foreign employee the option of filing the Limited Stay Visa (VITAS) ( Visa Tinggal Terbatas ) in an Indonesian Embassy or Consulate in any foreign country.
- Visa Fees: The applicant pays the applicable Visa Fees and he is given the VITAS stamp/sticker to his passport.
- Purpose The VITAS is the first entry visa, in particular, the right to enter Indonesia with the aim of a Temporary Stay Permit.
- Passport: Make sure that your passport can be considered as 18 months long as it corresponds with the 12 months Work KITAS issuance and possible extensions.
The Residency Phase Visa Change to KITAS
When the foreign worker arrives in Indonesia with the VITAS, he or she is required to obtain the essential Visa Conversion to legal residence permit, the KITAS (Kartu Izin Tinggal Terbatas).
Step-by-Step KITAS Issuance
- Newcomer: The TKA comes to Indonesia accompanied by the VITAS.
- Immigration Visit: The TKA will have to visit the local Directorate General of Immigration office within 30 days of arrival.
- Biometrics and Interview: The candidate submits a fingerprint, photos (biometric details) and has a short interview.
- e-KITAS Issuance: The Immigration Office issues the KITAS (currently primarily an electronic document, or e-KITAS) that is the official Temporary Stay Permit.
- The Important Notice: The VITAS does not allow complete residency status until the issuance of the KITAS, which is the final documentation of legal Expatriate Employment and residency.
Obligations, Labor Law, and amendments to the Omnibus Law
To remain compliant implies being aware of the constant labor requirements, which have been changed considerably by the 2020 Omnibus Law (Job Creation Law).
Ongoing Compliance & Rules
- Social Security: Foreign employees who have stayed over six months in the country of Indonesia are required to enroll to the national social security program- BPJS Ketenagakerjaan.
- Job Title Restrictions: The Omnibus Law was supposed to make the rules easier, but some administrative roles and HR-related jobs are still restricted (Job Title Restrictions) and are not open to foreign employees.
- Local Employment Ratio: Local Employment Ratio rules focus on the fact that the companies should mostly employ Indonesian nationalities, so RPTKA justification is extremely significant.
- Work Permit Extension: To avoid the heavy overstay fines, the Work Permit Extension process has to be started far ahead of time (usually 3 months) of the KITAS expiry date.
FAQs
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Can I change jobs with an already existing Work KITAS?
No. Your KITAS and Work Permit directly depend on your Sponsor Company and the position outlined in the RPTKA.27 You have to have your old one terminated and a new employer request a new RPTKA and KITAS.
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Which is the maximum time of a Work KITAS?
The standard Work KITAS is usually issued to cover 12 months and could be renewed on a yearly basis to a maximum of five years then the foreign worker could seek a permanent stay permit (KITAP).
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Is the Omnibus Law making it easier?
Yes and no. Many of the scattered regulations were consolidated into the Omnibus Law, streamlining the framework (e.g. with the use of RPTKA and Notification) but the basic sequence of approvals (RPTKA $\rightarrow VITAS $\rightarrow KITAS) is compulsory and strictly followed by the Ministry of Manpower and Immigration Bureau.
Final Thoughts
Accuracy and cooperation of the sponsor company is the key to successfully passing the navigating of the Indonesia Work Permit and Employment Rules. RPTKA, DPKK payment, VITAS, and final KITAS issuance are in a sequential process that is not negotiable. Being informed about the after the Omnibus Law provisions you will not lose your legal state and face dire consequences.
Disclosure:
This is an informative and educative article. It is recommended that the readers should ensure that all the application requirements, fees, and other regulatory information are verified with the official sources of Indonesian government (e.g., with the Ministry of Manpower and Directorate General of Immigration) or consult an experienced legal expert prior to making a decision.