Hiring Foreign Employees in Indonesia: Visa and Work Permit Requirements

Work Permit Application Process in Indonesia

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.

Overview of the Documents and Steps

1. RPTKA Submission:

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.

2. IMTA Application:

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.

3. KITAS Application:

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.

4. Supporting Documents:

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.

Timelines and Expected Costs

Processing times:

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.

Costs:

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.

Key Considerations for Compliance

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.

Immigration and Labor Law Compliance

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.

Immigration laws:

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.

Labor laws:

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.

Quotas and Industry-Specific Rules

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.

Industry-specific rules:

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.

How AYP Can Help

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.