While most companies around the world see the work permit as the main event for hiring expats, in Indonesia it is not even the starting point.
Compliance is a process that needs to be planned out and executed step by step for hiring expats in Indonesia. It starts with obtaining approval for manpower plans, followed by the payment of a levy as well as the immigration process and then annual reporting and renewal obligations. If one of these steps is missed, the whole process will be delayed.
Indonesia remains one of the most attractive markets in Southeast Asia for foreign capital and foreign expertise. But the Ministry of Manpower has recently tightened up control of foreign worker use and HR directors, CFOs, and general counsel need to think not just about whether the hire makes commercial sense, but whether the compliance path has been planned in enough detail to deliver on time.
The compliance architecture for hiring expatriates in Indonesia
Indonesia does not use a single-step work authorisation model. There are three distinct layers.
The first is manpower approval. The company must establish its legal basis to use a foreign worker through the RPTKA process, which is administered by the Ministry of Manpower under Government Regulation No. 34 of 2021, issued pursuant to Manpower Law No. 13 of 2003. The RPTKA approval must exist before anything else can proceed.
The second is the levy and immigration stage. Once the RPTKA is approved and DKPTKA paid, the relevant data moves into the immigration system for visa and KITAS processing.
The third is ongoing compliance. Permit issuance is not the end. Reporting, counterpart training, and renewal all continue until the foreign worker leaves.
That three-layer structure is what most companies underestimate. A qualified candidate, a willing employer, and a clear commercial need are necessary but not sufficient. The process must run correctly across all three layers simultaneously.
RPTKA, the real starting point
The RPTKA, or Foreign Worker Utilisation Plan, is the Ministry of Manpower approval that authorises the use of a foreign national in a specific role. Government Regulation No. 34 of 2021 defines it as a plan for the use of foreign workers in certain positions for a certain period.
This stage is more demanding than many employers expect. Under Article 12 of the same regulation, the employer must provide:
- the reason for using a foreign worker
- the position and number of workers
- the duration and work location
- the identity of the Indonesian counterpart
- the identity of the foreign worker employer
- the annual plan to employ Indonesian workers
Supporting documents are also required. These include the business registration number, constitutional documents, a draft employment agreement, an organisational chart, and formal statements on counterpart appointment, training, and Indonesian language facilitation for the foreign worker, also job training for Indonesian workers in positions equivalent to those occupied by the foreign worker
Submissions go through the TKA Online system, which is the Ministry’s dedicated platform for foreign worker utilisation applications. Document quality matters. A weak justification or incomplete file is the most common cause of delay at this stage.
Role restrictions and employer obligations
Foreign worker use in Indonesia is not unlimited. The conditions for the use of foreign workers are stated in Article 4 of Government Regulation No. 34 of 2021, namely: foreign workers are used for specific positions as determined by the Minister of Manpower and Employment and for a fixed period.
Two main restrictions in terms of the employment of foreign workers in Indonesia are stipulated in Article 10 and Article 11 of Government Regulation No. 34 of 2021, and these are strictly to be adhered to. Article 10 stipulates that a foreign worker shall not be assigned or placed to work in more than one job within one entity or company. Article 11 stipulates that a foreign worker shall not be assigned or placed to work in a job or function to manage and coordinate personnel or Human Resources of an entity or company. Violations of these restrictions trigger a sanctions cascade under Indonesian law.
Employer obligations
Article 7 and 8 of Government Regulation No. 34 of 2021 stipulates the obligations of an employer in relation to a foreign worker. Under Article 7 such obligations are as follows:
- to assign an Indonesian national to work alongside the foreign worker;
- to educate and train the counterpart;
- to repatriate the foreign worker when their employment contract expires; and
- to facilitate the foreign worker’s learning of the Indonesian language, unless otherwise exempted under the law.
Article 8 adds a further obligation that the employers must ensure that the foreign worker is enrolled in social security or insurance coverage, depending on the duration of employment.
The counterpart obligation is often treated as a formality. It is not. In many cases the Ministry checks on whether the foreign worker has a genuine counterpart and whether the counterpart has been given the proper education and training. Failure to demonstrate this is one of the grounds for the revocation of a work permit under Article 40.
The RPTKA to KITAS sequence – step by step
The table below shows the seven steps from initial scoping through KITAS issuance and post-issuance compliance, with the responsible authority, legal basis, and practical risk at each stage.
| Step | What Happens | Authority or System | Legal Basis | Practical Risk |
|---|---|---|---|---|
| 1 | Role scoping and document review. Confirm the position, entity, and business activity can support a foreign worker application. | Internal review against manpower and licensing records | GR No. 34/2021, Arts. 4, 6, 12 | Misaligned job title or unsupported business rationale. |
| 2 | RPTKA submission via TKA Online. Employer submits the Foreign Worker Utilisation Plan with role, duration, work location, reasons, counterpart data, and company documents. | Ministry of Manpower, TKA Online system | GR No. 34/2021, Art. 12 | Incomplete documents or weak justification delays the file. |
| 3 | Feasibility assessment and candidate data. Authority assesses the application; employer submits candidate credentials. | Ministry of Manpower | GR No. 34/2021, Arts. 13-14 | Candidate data that does not match the proposed role. |
| 4 | DKPTKA payment. Employer pays the foreign worker levy after receiving the billing code. Payment required before Legalization is issued. | Ministry of Manpower and designated payment channel | GR No. 34/2021, Arts. 23-24 | Late payment blocks progression to the next stage. |
| 5 | Visa and stay permit processing. Approved RPTKA data transmitted online for visa and KITAS processing. | Ministry of Law and Human Rights; Immigration | GR No. 34/2021, Art. 14; Law No. 6/2011, Arts. 39, 46, 48, 52 | Inconsistent passport or sponsor data slows processing. |
| 6 | KITAS issuance. Foreign national receives temporary stay permit to reside and work in Indonesia. | Immigration authorities | Law No. 6/2011, Arts. 46, 48, 52, 55 | Employers often treat issuance as the end. Reporting and renewal still remain. |
| 7 | Post-issuance reporting and renewal. Employer maintains validity through annual reporting, training follow-through, and timely renewal. | Ministry of Manpower; Immigration | GR No. 34/2021, Arts. 21, 32 | Renewal planning that starts too late. Thirty working-day deadline is strict. |
Exemptions and timing rules
Not every case follows the standard path. Article 19 of Government Regulation No. 34 of 2021 exempts certain categories from the full Legalization of the RPTKA requirement. These include:
- directors or commissioners with qualifying share ownership
- diplomatic and consular staff
- foreign workers involved in emergency production activity
- participants in vocational activity
- founders of technology-based start-ups
- business visit participants
- researchers working for a defined period
Timing rules matter in every case. Article 17 draws a clear line: temporary-work RPTKA is valid for a maximum of six months and cannot be extended. For assignments of more than six months, the RPTKA is valid for up to two years and is extendable.
Extensions are not automatic. Article 21 requires the application to be submitted no later than 30 working days before expiry. That deadline is strict. A renewal filed late means a gap in lawful status, which can affect the foreign worker’s right to remain and the employer’s compliance record.
Sector-specific considerations
The general regime under Government Regulation No. 34 of 2021 applies across most sectors, but several categories of employer need to check additional requirements before proceeding.
Companies licensed and supervised by the Financial Services Authority (OJK): banks, insurance companies, capital market participants, and other regulated financial entities face additional requirements on senior officer appointments that sit alongside the general manpower framework. These should be confirmed with OJK before any foreign hire at director or senior management level.
Employers operating in Special Economic Zones may have access to streamlined processes or different quota arrangements, depending on the zone and the applicable operating licence. Assumptions from the general regime should not be carried across without verification.
Directors and commissioners of PT PMA companies fall partly within the Article 19 exemptions but the precise scope depends on shareholding structure and the specific role. Legal review before the hire is faster than correction after.
Ongoing obligations after issuance
KITAS issuance is a milestone. It is not the finish line.
Article 27 of Government Regulation No. 34 of 2021 requires every employed foreign worker to hold a valid stay permit at all times. Law No. 6 of 2011 reinforces this under the immigration framework. The employer carries responsibility for ensuring the foreign worker’s status remains valid throughout the assignment.
Under Article 32 the employer has to submit an annual report on the employment of foreign workers (RPTKA) to the Ministry of Manpower. The report has to include data on the number of foreign workers employed by the employer, information on the education and training of Indonesian counterpart(s) and an annual report on technology and expertise transferred to Indonesian citizens or companies. Furthermore, the employer has to submit a report on foreign workers in case of early termination of the employment contract. In practice this early-termination reporting obligation is the most commonly failed compliance requirement.
Sanctions and enforcement exposure
Article 36 of Government Regulation No. 34 of 2021 sets out three different administrative sanctions: fines, suspension of RPTKA filing and withdrawal of Legalization.
As an example of the amounts of fines set out in Article 37 of Government Regulation No. 34 of 2021, the fine per position per person per month is Rp6,000,000 and will be increased to Rp36,000,000 per position per person per month for a period of 6 months.
Article 40 allows revocation in four situations: using a foreign worker outside the approved RPTKA, placing the worker in multiple positions, employing a foreign worker in a personnel role, or failing to pay DKPTKA.
Article 41 sets out the procedural steps that the Ministry of Manpower and Transmigration must take after an RPTKA has been revoked. Notification must be given to the immigration authority, and in accordance with Immigration Law No. 6 of 2011 (as amended), deportation of the foreign national shall follow. A major employment compliance failure at the RPTKA stage can rapidly become an immigration black list problem for the employer, with consequent risk of bad publicity.
What HR directors and boards should ask before hiring an expatriate in Indonesia
The compliance questions are not complicated. They just need to be asked early.
Is the job being offered to the foreign national allowed (permitted) or is it prohibited? Has the RPTKA been submitted prior to the actual hiring commitments being made from a commercial perspective? Is there a genuine Indonesian employee that the foreign national is being sent to train and assist? What is the renewal period for RPTKAs against the length of the project or assignment that the foreign national has been sent to Indonesia to complete?
The four simple questions need to be asked and answered early in the process to prevent all sorts of problems that need to be fixed later. The cost of fixing things after the foreign national arrives is many times greater than the cost of getting things right at the very beginning of the process.
Frequently asked questions
How do I hire a foreign worker in Indonesia?
The employer must obtain RPTKA approval from the Ministry of Manpower under Government Regulation No. 34 of 2021, pay the DKPTKA levy, and complete the visa and KITAS process through the immigration authority. Certain categories are exempt from the RPTKA requirement under Article 19.
What is RPTKA in Indonesia?
RPTKA is the Foreign Worker Utilisation Plan, as defined in Government Regulation No. 34 of 2021. It is the Ministry of Manpower’s approval for an employer to use a foreign national in a specified role for a specified period. It must be obtained before the visa and stay permit process can begin.
What is the DKPTKA levy?
DKPTKA is the compensation fund for foreign worker utilisation, payable by the employer for each foreign worker employed. Payment of the levy is required before the Legalization of the RPTKA is issued. Certain exempt categories do not pay the levy.
Can a foreign national be a director in Indonesia?
Article 19 of Government Regulation No. 34 of 2021 recognises exemptions for certain directors and commissioners. The precise scope depends on the shareholding structure and applicable sector rules. Legal review before the appointment is recommended.
How long does it take to get a work permit in Indonesia?
Six to eight weeks from the start of document preparation to KITAS issuance is a reasonable time estimate. The actual timeline depends on file quality, the case type, and immigration processing load. The Ministry has a two working-day assessment window once an application is accepted. In practice, preparation before submission and processing after approval take the most time.
What positions are closed to foreign workers in Indonesia?
Article 11 of Government Regulation No. 34 of 2021 prohibits foreign workers from holding positions that manage personnel affairs. The full list of permitted and restricted positions is determined by Ministerial Decree and updated periodically. Employers should confirm the position category before submitting an RPTKA.
Partner Perspective
Indonesia continues to welcome foreign expertise and the regulatory framework is designed to support that. The key for employers is to treat the RPTKA process as a strategic planning exercise rather than a last-minute administrative step, which consistently leads to smoother outcomes and faster onboarding timelines. Also, a common misconception is that obtaining the KITAS marks the end of the process. In practice, the greater compliance risk often arises after arrival, where reporting, counterpart development, and permit maintenance obligations are increasingly becoming areas of regulatory focus. Employers should therefore view expatriate hiring as an ongoing compliance programme rather than a one-off immigration exercise.
Sri Wahyu Ningsih, Partner
About Nusantara DFDL Partnership
Nusantara DFDL Partnership (NDP) is an Indonesian law firm and a member of the DFDL network, which operates across Southeast Asia. NDP advises foreign corporations, institutional investors, and Indonesian businesses across a full suite of corporate legal services, including corporate advisory, mergers and acquisitions, foreign direct investment, joint ventures, employment law, real estate, dispute resolution, restructuring, and cross-border transactions. NDP works with clients across sectors including digital infrastructure, financial services, energy, manufacturing, and property.
Disclaimer
This article is for general informational purposes only and does not constitute legal advice. Regulatory requirements in this area are subject to update. Readers should seek independent legal advice before making any hiring decision involving foreign nationals in Indonesia.
