Hire foreign workers in Indonesia is not as simple as issuing a job offer. It requires full compliance with both manpower and immigration rules. Multinational employers must understand each stage — from the Hasil Penilaian Kelayakan RPTKA (Feasibility Assessment) to the Pengesahan RPTKA (Foreign Manpower Utilization Plan Approval) and the expat ITAS (Limited Stay Permit). If you plan to hire foreign workers in Indonesia, understanding these procedures is essential.
See our relevant guide: Business Immigration in Indonesia: Work Permits, Business Visas, and Investor Options.
At PNB Immigration Law Firm, we regularly assist corporate clients in structuring compliant employment plans for foreign professionals. This guide explains each step in plain language, using current regulations: Government Regulation No. 34 of 2021, Minister of Manpower Regulation No. 8 of 2021, and relevant provisions from the now-replaced Manpower Regulation 10/2018.
The Legal Framework to Hire Foreign Workers in Indonesia
Indonesia welcomes skilled expatriates who contribute to economic growth and knowledge transfer. However, to hire foreign workers in Indonesia, a company must prove that no qualified local worker is available for the position.
Historically, employers needed both an RPTKA (Foreign Manpower Plan) and an IMTA (Work Permit). Manpower Regulation 10/2018 removes the IMTA requirement and simplifies the process into a single approval system. Manpower Regulation 8/2021 replaces it and introduces the Hasil Penilaian Kelayakan RPTKA (feasibility assessment) and the Pengesahan RPTKA, which formally authorize companies to employ foreign workers.
You can read the original regulatory framework at the Ministry of Manpower’s official site, which outlines the steps for foreign manpower utilization. a company must prove that no qualified local worker is available for the position.
The Shift from IMTA to Pengesahan RPTKA
The transition from IMTA to Pengesahan RPTKA was designed to reduce bureaucracy while maintaining supervision. Under the new system, the Pengesahan RPTKA acts as both the company’s work authorization and the legal basis for the foreign employee’s visa and stay permit.
Before receiving approval, each employer undergoes a Feasibility Assessment. The Hasil Penilaian Kelayakan RPTKA formalizes this step and evaluates whether the foreign employment plan aligns with Indonesia’s labor policy. The Ministry of Manpower reviews factors such as job title, skill match, employment period, and the company’s plan for training local staff.
Only after the feasibility result is approved may the employer obtain the Pengesahan RPTKA, pay the required compensation fund (DKP-TKA), and proceed to the visa and ITAS stages.
Who Can Hire Foreign Workers in Indonesia
Not every organization is eligible to hire foreign workers in Indonesia. The right is limited to specific categories, including Indonesian limited liability companies (PT and PT PMA), representative offices of foreign companies, educational and cultural institutions, and government or international organizations.
Each employer must possess a valid Business Identification Number (NIB) and operate in a sector that allows foreign manpower. The entity must also demonstrate good standing and compliance with existing labor and tax obligations before its application is approved.
For a detailed explanation of company formation and licensing, you can visit PNB Law Firm.
The Step-by-Step Process
Step 1: Hasil Penilaian Kelayakan RPTKA
The process begins when the employer submits an RPTKA proposal through the Ministry of Manpower’s TKA Online System. This document outlines the company’s need for foreign expertise, defines the role, details the foreign worker’s qualifications, and explains the knowledge transfer plan for Indonesian staff.
The Ministry reviews the application and issues the Hasil Penilaian Kelayakan RPTKA — the official “feasibility assessment result.” If approved, this document confirms that the company is eligible to employ a foreign national for the proposed role. If additional information is required, the employer may be asked to revise its plan.
This stage ensures that the proposed position aligns with Indonesia’s workforce development goals, as outlined in Government Regulation No. 34 of 2021.
Step 2: Pengesahan RPTKA
After passing the feasibility assessment, the company applies for the Pengesahan RPTKA. This approval serves as the official work authorization, specifying the foreign employee’s name, job title, employment duration, and the designated Indonesian companion (pendamping) who will receive knowledge transfer.
The Pengesahan RPTKA remains valid for up to two years and can be extended. Employers must pay the Dana Kompensasi Penggunaan TKA (DKP-TKA) — a compensation fund of USD 100 per month per foreign worker, paid in advance for the duration of employment.
Payment of DKP-TKA activates the approval for immigration use. Without proof of payment, the Ministry will not proceed to the visa stage.
Step 3: Visa and ITAS
Once the Pengesahan RPTKA is approved, the company applies for a Limited Stay Visa (VITAS) through the Directorate General of Immigration. Upon arrival in Indonesia, this visa converts automatically into an electronic Limited Stay Permit (e-ITAS), commonly known as the expat ITAS.
This permit allows the foreign worker to both live and work legally in Indonesia for the duration specified in the Pengesahan RPTKA. It must be renewed before expiration to avoid overstaying penalties.
You can read more about ITAS and residence permits on our Work & Stay Permit Services page.
Employer Obligations When You Hire Foreign Workers in Indonesia
Employers who hire foreign workers in Indonesia play a central role in maintaining compliance. They act as sponsors and are legally responsible for their expatriates’ stay, tax compliance, and eventual departure.
Under Manpower Regulation 8/2021, employers must ensure that foreign workers:
- Receive Indonesian language training.
- Participate in a structured knowledge transfer program.
- have an insurance or BPJS social security schemes.
- Hold valid stay permits at all times.
- report to the Ministry of Manpower in case of termination or transfer.
The company must also maintain updated records of every foreign worker’s RPTKA, ITAS, and DKP-TKA payment receipts.
Language and Knowledge Transfer Requirements
The obligation to facilitate Bahasa Indonesia training for expatriates is not symbolic. It aims to strengthen workplace integration and improve collaboration with Indonesian employees.
Companies often partner with certified language institutions or provide internal programs. During audits, the Ministry may request evidence such as attendance logs or training certificates.
Equally important is the knowledge transfer requirement. Each foreign worker must have an assigned Indonesian companion who learns from their skills. The employer must document this process in detail, showing progress and outcomes. This documentation often becomes critical during RPTKA renewal or compliance inspections.
Insurance, BPJS, and Tax Compliance
Employers that hire foreign workers in Indonesia must provide insurance coverage. Expatriates must be covered either by private insurance or Indonesia’s national social security programs. Those staying longer than six months must join BPJS Ketenagakerjaan (employment insurance) and BPJS Kesehatan (health insurance). Those on shorter assignments must have a private policy issued by a registered Indonesian insurer.
Tax compliance is equally important. A foreign employee staying more than six months becomes an Indonesian tax resident and must obtain an NPWP (Tax Identification Number). The employer is responsible for withholding and reporting PPh 21 (income tax), and for issuing annual income reports.
Failure to meet these obligations may result in fines, revocation of work authorization, or delays in renewing the Pengesahan RPTKA.
Job Title Eligibility and Restrictions
There are only specific executive, managerial, or expert roles available when companies hire foreign workers in Indonesia. The Ministry of Manpower maintains a periodically updated list of approved job titles by industry. Foreigners may only serve in executive, advisory, or technical expert positions that require specialized skills.
Roles related to human resources, personnel management, or legal representation are typically only available to Indonesian citizens. Before applying for an RPTKA, HR and legal teams should always verify that the job title appears on the Ministry’s current approved list.
Renewal and Termination
Companies can renew the Pengesahan RPTKA and ITAS if employment continues. They submit renewal applications 30 to 60 days before expiration and include proof of DKP-TKA payment, ongoing training records, and updated tax compliance.
If the employment ends early, the employer must report the termination within 30 days and process an Exit Permit Only (EPO) to officially cancel the ITAS. Neglecting this step can cause administrative problems for both the company and the foreign employee.
Common Issues and Best Practices
When companies hire foreign workers in Indonesia, common problems include missing documents, wrong job titles, and late payments. To avoid penalties, employers should keep a compliance tracker, monitor expiry dates, and ensure HR, legal, and finance teams work closely together.
At PNB Immigration Law Firm, we recommend conducting internal audits every six months to verify DKP-TKA payments, BPJS enrollment, and visa renewals. This proactive approach reduces risk and ensures business continuity.