Indonesia Work Permits & Visas: Employer Guide to Types & Sponsorship

Who Needs a Work Permit in Indonesia?

In Indonesia, any foreign national intending to engage in employment activities requires a work permit. This mandate applies to all sectors and industries, ensuring that foreign workers are legally authorized to perform their job functions within the country. Employers must secure the necessary permits to comply with Indonesian labor laws and avoid potential penalties.

Types of Work Visas in Indonesia

Indonesia offers several work visa options tailored to different employment needs. Understanding these visa types is essential for employers to determine the appropriate category for their foreign employees.

Work Permit Application Process in Indonesia (Step-by-step)

Indonesia’s work authorization process combines approvals from the Ministry of Manpower and the immigration authorities, typically resulting in a VITAS and then an ITAS/KITAS linked to a specific employer and role. The Indonesian sponsoring company must drive most of the process on behalf of the foreign employee.

• Step 1: The employer confirms eligibility to hire foreign workers and defines the role. This includes ensuring the company has the correct business licenses, that the position is allowed for foreign workers under Indonesian regulations, and that the proposed salary and seniority align with local standards.
• Step 2: The employer prepares and submits the Foreign Manpower Utilization Plan (RPTKA). This plan outlines the number of foreign employees, their positions, duration of employment, and training or knowledge transfer commitments to Indonesian staff, and it must be approved by the Ministry of Manpower.
• Step 3: Once the RPTKA is approved, the employer applies for work authorization and the limited stay visa (VITAS) for the employee. At this stage, the employer uploads corporate documents and the employee’s personal documents into the online system and pays the required fees, including the mandatory compensation fund for hiring foreign workers where applicable.
• Step 4: After approval, the immigration authorities issue a VITAS approval letter, which the employee uses to obtain the visa at an Indonesian embassy or consulate abroad. The employee must check the validity period of the VITAS and travel to Indonesia within that window.
• Step 5: Upon arrival in Indonesia, the employee completes biometric registration and converts the VITAS into a limited stay permit (ITAS/KITAS). This step is usually finalized at the local immigration office, and the employee’s details are recorded in the immigration system.
• Step 6: The employer and employee complete any additional registrations required, such as reporting to local manpower offices or obtaining a tax identification number (NPWP) and social security registrations where applicable. Ongoing compliance includes adhering to the approved role, location, and duration, and monitoring expiry dates for timely renewals.

Requirements and Eligibility for a Work Permit

Eligibility for Indonesian work authorization depends on both the sponsoring company and the foreign national meeting specific regulatory conditions. Authorities focus on the legitimacy of the business, the appropriateness of the role for a foreign worker, and the individual’s qualifications.

Common requirments inlcude:

• Corporate eligibility and licensing: The sponsoring company must be properly incorporated in Indonesia and hold the necessary business licenses for its sector. Authorities may request company deeds, business identification numbers, and sectoral permits to confirm the employer is operating lawfully.
• Approved RPTKA: An approved Foreign Manpower Utilization Plan (RPTKA) is typically required before a foreign worker can be hired. This document demonstrates that the company has planned its foreign workforce and will comply with training and knowledge transfer obligations.
• Position suitability: The role offered must be one that is open to foreign workers and not reserved exclusively for Indonesian nationals. Regulations may restrict foreign workers from certain positions, particularly in HR, legal, or other sensitive functions.
• Relevant qualifications and experience: The foreign employee is generally expected to have education and professional experience that match the position. Authorities may request diplomas, professional certificates, and reference letters to verify that the individual is suitably qualified.
• Valid passport and clean record: The employee must hold a passport with sufficient remaining validity and may be asked to provide a police clearance or similar document. Immigration can refuse applications where there are security, criminal, or immigration compliance concerns.
• Compliance with quota and ratio rules: In some sectors, authorities may apply ratios between foreign and local employees or other quota-like controls. Employers must ensure they stay within any applicable limits and maintain accurate headcount records.

Work Permit Processing Time in Indonesia

Processing times for Indonesian work permits and visas can vary depending on the type of permit, the location of processing, and how quickly documents are provided. Seasonal peaks, regulatory changes, and additional checks can also affect timelines.

The typical processing time for a work permit or visa in Indonesia can vary depending on the RPTKA approval, the responsiveness of both employer and employee, and the workload at the Ministry of Manpower and immigration offices. Generally, you can expect the following timelines:

• Temporary Residence or Work Permit: Around 4 to 8 weeks from submission of a complete application, including RPTKA approval, VITAS issuance, and conversion to ITAS/KITAS, assuming no major queries or document issues.
• Permanent Residence: Approximately 12 to 24 months or longer, as this status is more restricted, may require longer residence in Indonesia, and is subject to extensive background checks and policy considerations.
• Short-Term Business or Work Visas: Roughly 2 to 4 weeks after all documents are submitted, often used for business meetings, short technical assignments, or training visits, subject to the specific visa category and embassy workload.

Expected Processing Timeline: Employer vs Employee

While exact timelines differ by case, it is helpful to understand how the overall process typically unfolds between employer and employee responsibilities.

• Week 1: Employer gathers corporate documents, confirms role eligibility for a foreign worker, and collects initial personal documents from the candidate.
• Week 2: Employer submits the RPTKA application and responds to any initial clarification requests from the Ministry of Manpower.
• Week 3–4: RPTKA is reviewed and, if approved, the employer proceeds to apply for work authorization and the VITAS for the employee.
• Week 5–6: VITAS approval is issued, and the employee visits the designated Indonesian embassy or consulate to have the visa stamped in their passport.
• Week 7: Employee travels to Indonesia, completes arrival formalities, and attends biometric registration at the local immigration office.
• Week 8: ITAS/KITAS is issued, and the employer and employee finalize any remaining registrations, such as tax and social security, so the employee can begin work.

Who Does What During Indonesia Work Permit Sponsorship?

• Employers are responsible for: Defining the role, confirming that it is eligible for a foreign worker, preparing and submitting the RPTKA and work authorization applications, and paying applicable government fees. They must also monitor permit validity, ensure the employee works only in the approved role and location, and manage renewals or cancellations when employment ends.
• Employee is responsible for: Providing accurate personal documents, such as passports, diplomas, and reference letters, and completing any required medicals or police clearances. They must also attend embassy appointments and immigration visits, maintain a valid passport and address, and comply with the conditions of their ITAS/KITAS and visa.

Work Permit Renewal Periods in Indonesia

Indonesian limited stay permits (ITAS/KITAS) linked to work are commonly granted for one year, with the possibility of renewal, although shorter or longer periods may be available depending on the role and regulations in force. Employers should begin renewal planning several months before expiry to allow time for updated RPTKA approvals, document collection, and processing at both manpower and immigration offices.

Renewal requirements generally mirror the initial application, including confirmation that the role is still needed, that the company remains compliant, and that the employee continues to meet qualification and immigration conditions. Because practice may vary and rules are periodically updated, companies should confirm current renewal procedures and lead times with Indonesian authorities or a trusted local advisor.

What Are the Fees for a Work Permit or Visa in Indonesia?

The fees associated with obtaining work permits and visas in Indonesia vary depending on the type and duration of the permit.

Note: The above fees reflect government fees for work permits and visas in Indonesia, and is not associated with Playroll's fees for visa support services. Please contact our team for detailed information on our visa support services.

Visa Requirements for Digital Nomads in Indonesia

Indonesia offers a specific visa option for digital nomads, recognizing the growing trend of remote work. The E33G Remote Worker Visa allows individuals to live and work remotely in Indonesia for up to one year. This visa is designed for those who work for companies outside Indonesia or run their own businesses abroad.

Applicants must meet certain criteria to qualify for the E33G visa:

• Proof of Employment: Evidence of employment with a company outside Indonesia or proof of business ownership.
• Minimum Income: Demonstrated annual income of at least USD 60,000.
• Health Insurance: Valid health insurance coverage for the duration of the stay in Indonesia.
• Accommodation Details: Proof of accommodation in Indonesia.

Employers should note that while the E33G visa facilitates remote work, it does not permit engagement in local employment or business activities within Indonesia.

Employer Compliance & Obligations in Indonesia

Employing foreign nationals in Indonesia comes with several challenges that employers need to navigate carefully. Understanding these challenges can help ensure a smooth hiring process and compliance with local laws.

• Complex Regulatory Environment: Indonesia's labor and immigration laws are intricate, requiring thorough understanding to ensure compliance.
• Lengthy Processing Times: Obtaining necessary permits and visas can be time-consuming, potentially delaying project timelines.
• Cultural Differences: Integrating foreign employees into the local work culture may pose challenges due to differing business practices and communication styles.

Tips for Employers:

• Engage Professional Services: Consult with immigration experts or legal advisors specializing in Indonesian labor laws to navigate the regulatory landscape effectively.
• Plan Ahead: Start the work permit and visa application processes well in advance to accommodate potential delays and ensure timely onboarding.
• Cultural Sensitivity Training: Provide training for both local and foreign staff to foster mutual understanding and smoother cultural integration within the workplace.

Hire Global employees without hassle with an EOR solution

Expanding your workforce across international borders is an exciting step, but it can be a logistical nightmare to hire and pay employees in different countries. That’s the advantage of using a trusted Employer of Record like Playroll. They can:

• Handle your international payroll: An EOR will act as your payroll provider, paying your employees on your behalf in the local currency. The company will also have in-depth knowledge of local tax codes, regulatory practices, and everything else that goes into managing global payroll.
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• Hire and pay international contractors: Sometimes a particular project or role doesn’t require hiring a full-time employee. An EOR gives employers the flexibility to also hire contractors as needed, and avoid the potential for misclassification under local labor law.