Obtain Work Permit in Indonesia

Updated on Friday 10th May 2019

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The number of foreign citizens moving to Indonesia has increased in the last few years as the government has improved many of the laws targeting foreign direct investments. However, not all individuals move with the purposes of setting up a company in Indonesia, some of them relocate here for employment reasons.

In order to work in Indonesia, a foreign citizen must respect several conditions and apply for a work permit. Below, our company formation agents explain how to apply for a work permit in Indonesia. We can also those who want to obtain work permits or to proceed with the Indonesian company incorporation procedure.
 

Requirements for obtaining an Indonesian work permit


A few years ago, the government altered some of the regulations concerning the requirements for obtaining a work permit in Indonesia. These regulations have been simplified in the sense that:
 
  • the maximum age limits have been modified in most of the industries, the only restrictions remaining in the oil and gas sector where the workers must be aged 30 to 55;
  • in order to work in specific industries, the applicant must bring proof of their education in the respective field;
  • proof of competence from former employers or at least 5 years of experience is also required;
  • a health insurance must be contracted for the entire period of staying in Indonesia (the duration of the work permit);
  • other regulations apply to special categories of applicants, such as sportsmen and artists.

The new work permit regulations in Indonesia also provide for simplified procedures related to obtaining the short-stay visa (IMTA) for work purposes and the Expatriate Placement Plan (RPTKA).
Our company formation consultants in Indonesia can explain what the IMTA and RPTKA are used for.
 

Types of work permits in Indonesia


There are two main types of work permits available for those who want to work in Indonesia: the limited-stay permit (ITAS) and the permanent-stay permit (KITAP). Each of the two permits is issued under specific conditions.

The limited work permit is issued for a duration of minimum six or twelve months, based on the employment contract signed with the Indonesian company. The ITAS permit is issued by the Indonesian Immigration General Directorate.

The permanent-stay permit is issued only after residing in Indonesia based on limited work permit. In order to obtain a permanent work permit, a foreign citizen must have lived in Indonesia for three consecutive years.

It should be noted that those who want to act as Indonesian company directors or shareholders and live here must also obtain an ITAS work permit prior to their arrival. However, the requirements for these categories of applicants have been simplified.

Our company registration agents in Indonesia can explain the regulations related to foreign ownership and management in a company. We can also help if you are interested in starting a business in Indonesia.
 

Procedure for obtaining a work permit in Indonesia


The process of obtaining a work permit for a foreign employee must be initiated by the Indonesian company hiring the overseas citizen.  The employer must first submit the RPTKA request with the Ministry of Manpower. Under the new regulations, the RPTKA can take the form of a letter of announcement or directly of the employment contract letter issued by the Investment Coordinating Board in Indonesia.

Once the Ministry has issued the approval of the RPTKA, the Indonesian company can continue the work permit issuance procedure with the immigration authorities and obtain the IMTA for the employee.

Once the short-stay visa (IMTA) is issued, the employer can apply for the Indonesian temporary work permit.

If you need guidance on how to hire a foreign employee, our company incorporation specialists in Indonesia can advise you.
 

Documents required for obtaining an Indonesian work permit


The following documents need to be provided by the Indonesian company applying for the work permit:
 
  1. a copy of the Expatriate Replacement Plan, the business license and other information about the company, such as its registered address;
  2. a letter of recommendation obtained from the Ministry of Manpower together with the RPTKA;
  3. the certificate of competence and/ or proof of experience of the future employee;
  4. the personal details of the employee (name, address, address in Indonesia) and the insurance policy;
  5. the declaration of the foreign employee which will serve as a job acceptance offer;
  6. a copy of the employment contract will also be required when applying for the work permit;
  7. the receipt issued by the Skill and Development Fund which indicates the payment of the social security insurance for the employee.

For complete information on the documents required to obtain a work permit in Indonesia and assistance in various company formation matters, please contact us.