Having your company employ expatriate workers or any foreign workers in Indonesia may seem complex. During the COVID-19 pandemic, a knowledge company should practice the correct terms to use foreign workers and working permits. In this article, we will discuss several guides to employ foreign workers in Indonesia correctly following provisions applied in Indonesia.
Foreign Worker Permit is a decree that contains regulations on the permission of Foreign Citizens (WNA) to work in companies in Indonesia. In this case, the intention of Foreign Workers (TKA) is a foreign citizen holding a visa to work in Indonesia.
Many foreigners mistakenly think that a work permit is the same as Limited Stay Permit Card (KITAS/ITAS). For a start, a working permit in Indonesia is called Expatriate Placement Hiring Plan (RPTKA). This document will be your ticket for legalization processed by Indonesian Immigration.
The ratification of the Plan for the Employment of Foreign Workers (RPTKA) is a document that details specific tasks, positions, and length of service of foreign nationals in Indonesia. The Government of Indonesia issued the Minister of Manpower Regulation No. 8/2021, which revised the Ministry of Manpower Regulation No. 10/2018 concerning the Procedure for Employment of Foreign workers. This latest regulation stipulates that RPTKA approval is now the basis for the authority to grant a limited stay visa (VITAS). Once you receive your VITAS, immigration in Indonesia will issue your limited stay permit (KITAS/ITAS).
The two most common types of visas used to conduct business in Indonesia are business visas and work permits visas, and the most important differences between the two visas are:
A business visa is for business dealings in Indonesia, such as conference seminars, unpaid training, etc. These types of Visa can not be used as working visas.
Work permits are used for services considered as labor or any work, with compensation in wages or salaries.
Legal Entities That Allowed to Employ Foreign Workers (TKA)
Types of companies in Indonesia that are allowed to employ foreign workers are:
Government-owned agencies
International business entities
Representatives of foreign-owned countries
International organizations
Foreign-owned trade representative office, foreign-owned company representative office, foreign-owned news representative office
Foreign-owned private company
Legal entity in the form of PT or Foundation
Social institutions, religious institutions, educational and cultural institutions
Impresario service company
Requirements for Foreign Workers to Work in Indonesia
Regulation of Law No. 13/2003 concerning Manpower contains requirements that must be possessed by Foreign Workers (TKA) to work in Indonesia, including:
Have an education that matches the qualifications required for the position
Have a certificate of competence or have work experience of at least 5 years under the qualifications of the position
Having a statement letter is required to transfer his expertise to the accompanying TKI
Have a Tax Identification Number (with a working period of more than six months)
Have an insurance policy belonging to an Indonesian legal entity
Have a limited stay permit to work issued by the authorized agency.
Requirements Employment of Foreign Worker Permits (TKA)
Before taking care of permits related to foreign worker permits (TKA), several administrative requirements must be completed, including:
Plan for Employment of Foreign Workers (RPTKA), which has been approved by the Minister or official
Compensation Fund for the Employment of Foreign Workers (DKP-TKA) for all employed foreign workers
Have an insurance policy belonging to an Indonesian legal entity (minimum working period of 6 months)
Register foreign workers in the National Social Security program (minimum six months of service)
Selecting Companion Workforce in the context of transferring technology and expertise of foreign workers
To provide education and training for Companion Workers
Provide Indonesian language education and training facilities for foreign workers.
Procedure for Managing Foreign Worker Permits (TKA)
The foreign permit can be processed after fulfilling the requirements. The management of foreign worker permits includes several stages; the following are the outlines:
Register to get the RPTKA online queue;
Fill in the RPTKA document form;
Upload the RPTKA document;
Verification of RPTKA and scheduling of exposure by the Ministry of Manpower
Ratification of RPTKA
RPTKA holders
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How JAC Consulting Can Assist
JAC Consulting has provided expert assistance in the establishment of business entities in Indonesia for many multinational companies operating within various industries. Many who are new to this process may feel overwhelmed by local language barriers and the complex bureaucratic steps involved. JAC provides comprehensive consultation from the beginning, starting with research on business feasibility and prioritization of the compliance to government regulations. We ensure that the application process of establishment is as smooth and efficient as possible.