Understandably, it is necessary to develop a sense of how the work permit process in Indonesia works, especially as foreign companies and their Indonesian counterparts grow. The process is governed by Government Regulation No. 34 of 2021 and Minister of Manpower Regulation No. 8 of 2021.
These two regulations replaced the previous IMTA regime and introduced a new system that utilizes RPTKA approval and electronic Notification. Therefore, prior to engaging any foreign employees, employers must undergo the entire work permit application process.
Please also check our article on business immigration for a comprehensive overview of corporate immigration. This guide functions as the central reference for employers seeking to understand Indonesian work permit procedures, compliance obligations, and approval timelines.
Manpower and Immigration Regulations in Indonesia
A combination of manpower and immigration laws in Indonesia currently regulates the use of foreign workers in Indonesia. Therefore, in practice, employers must receive prior approval from the Ministry of Manpower in order to hire foreign nationals. Moreover, Permenaker No. 8 of 2021 establishes a fully digital process called TKA Online, which combines manpower approval, compensation payments, and employment registration. As a result, the work permit process in Indonesia is now much clearer and monitored more closely.
Manpower regulations are available at the official website from the Ministry of Manpower.
Immigration regulations are available at the website of the Directorate General of Immigration.
Understanding RPTKA in the Work Permit Process in Indonesia
The Rencana Penggunaan Tenaga Kerja Asing (RPTKA) is a fundamental part of the work permit process in Indonesia.
Prior to submitting an immigration application, employers must first obtain an approved RPTKA from the Ministry of Manpower. In doing so, this requirement helps to ensure that the use of foreign labor is reasonable and consistent with national workforce development objectives. For further guidance, we refer to our article about the RPTKA approval process.
To submit an immigrant worker’s visa application, the employer must first receive approval for their RPTKA from the Ministry of Manpower. This means that that the employer can only use the foreign worker in a reasonable and consistent manner with the goals of workforce development in Indonesia. As a result, this ensures that employers can demonstrate compliance with regulations as early as possible in the application process. Therefore, we recommend reviewing our article on the RPTKA approval process to understand the applicable procedure and requirements.
RPTKA approval is therefore the first and most important stage of the work permit application process.
Please read our work permit guide for a complete overview of work permit options and procedures. Accurate RPTKA preparation significantly reduces processing delays and rejection risks.
Eligible Employers and Workers
Not all entities are permitted to use foreign workers. Eligible employers usually include:
- Indonesian private companies
- Companies that invest in foreign countries
- Representative Offices
- International Organizations
In turn, foreign workers are required to possess certain qualifications. Usually, foreign workers need to show evidence of:
- A relevant education
- Sufficient experience
- Ability to transfer their skills to Indonesian counterparts
As such, the application process involves both company and employee eligibility reviews.
Replacing IMTA with Pengesahan RPTKA and Electronic Notification
Currently, the Ministry of Manpower nu longer issues an IMTA separately as a permit. Following approval of an employer’s RPTKA application, the Ministry of Manpower issues Pengesahan RPTKA (RPTKA Approval) through the system, together with the electronic Notification workflow.
Pengesahan RPTKA and the electronic Notification function as the official form of permission in the work permit process in Indonesia. In doing so, they verify that the employer has received regulatory approval, made compensation fund payments, and registered employment information.
A foreign worker may start working in Indonesia once Pengesahan RPTKA and the electronic Notification are issued.
Obligations of DKPTKA in the Work Permit Process in Indonesia
Prior to issuing a Notification, employers must make a payment to the Dana Kompensasi Penggunaan TKA (DKPTKA) via the government payment system. Because DKPTKA payments are integrated into the digital platform, any delay in payment will negatively impact the work permit process in Indonesia. Thus, making timely payments remains crucial.
Unified Work Permit and Stay Permit Procedure
Manpower and immigration processes have become more connected as a result of regulatory changes.
The process of obtaining a work permit in Indonesia is initiated by the employer when submitting and receiving approval of an RPTKA. Once the RPTKA has been approved, the employer must complete the payment for the DKPTKA. Then, the employer will receive a notification from the government. At that point, the employer may apply to obtain an electronic visa. Upon entering Indonesia, the foreign worker will be issued an electronic stay permit (ITAS). Lastly, upon the arrival of the foreign worker, the employer must register and report to the relevant local authorities
Throughout the above sequence, employers retain responsibility for compliance. Therefore, the work permit process in Indonesia extends past the initial approval.
Please see also our services page explaning the different types of work and stay permits.
Provisions for Directors and Shareholders
Some foreign directors and shareholders who hold shares in PT PMA companies may be exempt from manpower provisions. However, exemptions are subject to limitations and depend on the ownership structure and classification of position.
Regardless of the exemption, immigration permits are always required. Therefore, individual assessments should be performed prior to reliance on any exemption in the work permit process in Indonesia.
Responsibilities of Employers for Compliance
Under Regulation No. 8 of 2021, employers are subject to ongoing responsibilities in the work permit process in Indonesia.
Specifically, employers are responsible for ensuring that foreign workers:
- Perform only roles authorized by the employer
- Participate in knowledge transfer programs
- Comply with reporting requirements
Additionally, employers are responsible for maintaining accurate records and cooperating with inspectors.
Non-compliance may result in penalties, suspension of permits, or future restrictions. Therefore, compliance management is essential at all stages of the application process.
Related Guides and Resources
To further support employers, we recommend reviewing the following resources:
How PNB Immigration Law Firm Can Assist with the Work Permit Process in Indonesia
PNB Immigration Law Firm provides comprehensive support for the work permit process in Indonesia, including RPTKA preparation, Notification processing, DKPTKA management, visa coordination, compliance monitoring, and renewal management.
By combining legal expertise with practical experience, we help companies navigate regulatory requirements efficiently and securely.
Frequently asked questions
Processing times depend on documentation quality, position type, and government workload. On average, the process may take several weeks to several months.
In most cases, employers must obtain RPTKA approval before hiring foreign workers, subject to limited exemptions.
Some directors may be exempt from manpower approval, but immigration permits remain mandatory. Individual assessments are required
Sanctions may include fines, permit revocation, blacklisting, and restrictions on future hiring.
Ready to Apply for a Work Permit in Indonesia?
If your company requires professional assistance with the work permit process in Indonesia, our consultants are ready to assist you.
Contact PNB Immigration Law Firm today for a personalized assessment and compliance review.