If you\u2019re planning to hire foreign employees in Indonesia, staying updated on the latest rules is a must. Over the last few years, the Indonesian government has introduced several new regulations that make the process more structured, and in some ways, easier, if you follow the right steps. Each new law is supported by at least one implementing regulation, which provides detailed procedures for compliance.<\/p>\n\n\n\n
Here\u2019s what you need to know:<\/p>\n\n\n\n
1. Omnibus Law & Job Creation Law (2020)<\/strong><\/h3>\n\n\n\nThe Job Creation Law, also known as the Omnibus Law, was introduced to simplify hiring and investing in Indonesia. It trims down overlapping rules and aims to make things faster for businesses, especially foreign-owned companies and investors. This law made it easier to get work permits, cut red tape, and supported job creation through foreign talent.<\/p>\n\n\n\n
2. Government Regulation No. 34 of 2021<\/strong><\/h3>\n\n\n\nThe Indonesia’s Government Regulation No. 34 of 2021<\/strong> <\/a>focuses on the use of foreign workers<\/strong> (known locally as TKA<\/em>). It explains:<\/p>\n\n\n\n\n- Which roles can be filled by foreign nationals<\/li>\n\n\n\n
- How companies must prepare a Foreign Worker Utilization Plan<\/strong> (RPTKA)<\/li>\n\n\n\n
- The obligation to train Indonesian workers alongside foreign ones<\/li>\n<\/ul>\n\n\n\n
This is the main regulation you\u2019ll deal with when hiring foreigners legally.<\/p>\n\n\n\n
3. Ministerial Regulation No. 8 of 2021<\/strong><\/h3>\n\n\n\nThis regulation<\/a> made most of the application process online<\/strong>, through the Ministry of Manpower\u2019s TKA Online platform. It speeds up things like submitting the RPTKA and getting your IMTA (work permit approval). No more waiting in long lines or mailing paper forms.<\/p>\n\n\n\n4. Government Regulation No. 40 of 2023<\/strong><\/h3>\n\n\n\nThis new regulation No. 40 of 2023<\/a> update strengthens digital processing and supports foreign investment professionals<\/strong> dan high-skill foreign employees<\/strong>. It also touches on visa types<\/strong> and aligns with changes to the limited stay permit (KITAS)<\/strong> to match modern business needs.<\/p>\n\n\n\n5. Permenkumham No. 29 of 2021<\/strong><\/h3>\n\n\n\nIssued by the Ministry of Law and Human Rights, Permenkumham No. 29 of 2021<\/a> covers immigration permits<\/strong> and visa categories, especially for those applying for a limited stay visa<\/strong> to work or invest in Indonesia. It helps define who qualifies, how long they can stay, and how to renew.<\/p>\n\n\n\nWho Can Hire & When<\/strong><\/h2>\n\n\n\nNot every company in Indonesia can hire foreign workers. Under Indonesian law, only certain legal entities and business entities are permitted to hire foreign employees. The government has set clear rules about who\u2019s allowed<\/strong> to do it and when<\/strong> it\u2019s appropriate. Let\u2019s break it down in simple terms.<\/p>\n\n\n\n1. Only Certain Companies Can Hire Foreigners<\/strong><\/h3>\n\n\n\nTo legally employ a foreign worker in Indonesia, your business must be one of the following:<\/p>\n\n\n\n
\n- PT PMA (Foreign-Owned Companies)
<\/a><\/strong>These are companies partly or fully owned by foreign investors. They are the most common type allowed to hire foreign nationals.<\/li>\n\n\n\n- Representative Offices<\/strong>
<\/strong>Foreign companies that have a branch or office in Indonesia (but don\u2019t directly generate income) can hire foreign staff in certain roles, usually at the executive or advisory level.<\/li>\n\n\n\n- International Organizations and Nonprofits<\/strong>
<\/strong>Some nonprofits and international bodies with legal standing in Indonesia may also hire foreigners for specific programs.<\/li>\n<\/ul>\n\n\n\nSo, if you\u2019re just starting a small local business (like a regular PT), you can\u2019t hire foreign employees unless you upgrade your business license or restructure as a PT PMA.<\/p>\n\n\n\n
2. What Kind of Jobs Can Be Given to Foreign Workers?<\/strong><\/h3>\n\n\n\nIndonesia doesn\u2019t allow just any job to be filled by a foreigner. The position must require special skills<\/strong>, usually something that can\u2019t easily be found in the local workforce. Indonesian regulations specify a list of job positions that are eligible to be filled by foreign workers.<\/p>\n\n\n\nAllowed roles typically include:<\/p>\n\n\n\n
\n- Directors, commissioners, and senior managers<\/li>\n\n\n\n
- Engineers, tech experts, and consultants<\/li>\n\n\n\n
- Teachers in international schools or universities<\/li>\n\n\n\n
- Specialized jobs in energy, mining, manufacturing, and digital sectors<\/li>\n<\/ul>\n\n\n\n
But roles like receptionist, cashier, admin assistant, or HR staff are strictly for local workers only<\/strong>.<\/p>\n\n\n\n3. Timing Matters, Too<\/strong><\/h3>\n\n\n\nYou can\u2019t just hire a foreign worker overnight. Before hiring, your company needs to:<\/p>\n\n\n\n
\n- Get approval<\/strong> for a Foreign Worker Utilization Plan (RPTKA)<\/strong><\/li>\n\n\n\n
- Make sure the role fits the approved job list<\/li>\n\n\n\n
- Ensure there\u2019s a plan to train local employees alongside the foreign hire<\/li>\n<\/ul>\n\n\n\n
There\u2019s also a priority system: companies should always try to hire Indonesian workers first. Foreign hires are allowed only when there\u2019s a real need.<\/p>\n\n\n\n
Step-by-Step Hiring Process<\/strong><\/h2>\n\n\n\n![\"Close-up](\"https:\/\/visa-indonesia.com\/wp-content\/uploads\/hire-foreign-workers-in-indonesia-steps-1024x536.jpg\")
<\/figure>\n\n\n\nHiring employees from overseas in Indonesia involves clear steps and requires strict adherence to Indonesian procedures and regulations to ensure compliance throughout the hiring process.<\/p>\n\n\n\n
Quick Cost & Timeline (August 2025)<\/strong><\/h3>\n\n\n\nKeperluan<\/strong><\/td>Government Fee \/ Contribution<\/strong><\/td>Approx. USD*<\/strong><\/td>Typical Processing Time**<\/strong><\/td>Key Notes<\/strong><\/td><\/tr>RPTKA Approval & DKP\u2011TKA payment<\/a><\/strong><\/td>DKP\u2011TKA = USD\u202f100\u202fper\u202fmonth of assignment (paid in IDR at BI mid\u2011rate)<\/td> Example\u202f6\u202fmo\u202f\u2248\u202fUSD\u202f600<\/td> 3\u20135 working days (Manpower)<\/td> RPTKA itself is free; pay DKP\u2011TKA before approval<\/td><\/tr> e\u2011VITAS \/ e\u2011KITAS \u2013 Category\u202fI<\/strong> (up to 6\u202fmonths)<\/td>IDR\u202f5,250,000<\/td> \u2248\u202fUSD\u202f340<\/td> 2\u20133 working days<\/td> Fee covers visa issuance & ITAS sticker<\/td><\/tr> e\u2011VITAS \/ e\u2011KITAS \u2013 Category\u202fII<\/strong> (up to 12\u202fmonths)<\/td>IDR\u202f7,350,000<\/td> \u2248\u202fUSD\u202f476<\/td> 2\u20133 working days<\/td> , <\/td><\/tr> e\u2011VITAS \/ e\u2011KITAS \u2013 Category\u202fIII<\/strong> (up to 24\u202fmonths)<\/td>IDR\u202f9,500,000<\/td> \u2248\u202fUSD\u202f615<\/td> 2\u20133 working days<\/td> , <\/td><\/tr> NPWP (Tax Number)<\/strong><\/td>No fee<\/td> , <\/td> Same\u2011day (online)<\/td> Expat validates NPWP online after KITAS issued<\/td><\/tr> BPJS Ketenagakerjaan & Kesehatan<\/strong> (if stay >\u202f6\u202fmo)<\/td>Employer\u202f+\u202femployee monthly contributions<\/td> Varies<\/td> 3\u20135 working days<\/td> Private insurance allowed for \u2264\u202f6\u202fmo assignments<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n*USD equivalents calculated at IDR\u202f15,450\u202f=\u202fUSD 1<\/strong> (August\u202f2025).<\/p>\n\n\n\n*Processing times are indicative and assume complete documents.<\/em><\/p>\n\n\n\nStep 1: Prepare Your Foreign Worker Utilization Plan (RPTKA)<\/strong><\/h3>\n\n\n\nFirst, your company must create an RPTKA. The RPTKA is a crucial document required for the legal penggunaan tenaga kerja asing (use of foreign labor) in Indonesia. Think of this as a detailed plan explaining why you need a foreign worker and the exact job they\u2019ll do. You\u2019ll submit this plan online through the Ministry of Manpower\u2019s website.<\/p>\n\n\n\n
Here\u2019s a list of documents you\u2019ll typically need to prepare:<\/p>\n\n\n\n
\n- Business license (NIB)<\/li>\n\n\n\n
- Company deed and amendments<\/li>\n\n\n\n
- Organizational chart<\/li>\n\n\n\n
- Draft employment contract<\/li>\n\n\n\n
- Education certificates and work experience of the foreign worker<\/li>\n\n\n\n
- Training plan for an Indonesian colleague who will be mentored or upskilled<\/li>\n<\/ul>\n\n\n\n
Step 2: Get Approval for Your RPTKA<\/strong><\/h3>\n\n\n\nAfter submission, the Ministry reviews your plan. They\u2019ll check if you\u2019re hiring for roles allowed for foreign employees and ensure you have a clear training plan for your Indonesian workers. Approval usually takes between 5\u201315 working days.<\/p>\n\n\n\n
Note: Certain categories, like shareholders who are directors or commissioners with investment of at least USD 1 million<\/strong>, are exempt from the RPTKA requirement<\/strong>.<\/p>\n\n\n\nStep 3: Obtain the Foreign Worker Notification (Notifikasi)<\/strong><\/h3>\n\n\n\nWith an approved RPTKA, the next step is to apply for the Foreign Worker Notification<\/strong>, also known as Notifikasi<\/strong>, which has replaced the old IMTA system under MOM Regulation No. 10\/2018 and Government Regulation No. 34\/2021.<\/p>\n\n\n\nAt this stage, your company must pay the Compensation Fund for Foreign Workers (DKP-TKA)<\/strong>, which is USD 100 per month<\/strong> per foreign employee. This compensation is paid into a government development fund to support workforce development in Indonesia. Once payment is confirmed, the notification becomes active.<\/p>\n\n\n\nProcessing usually takes 3\u20137 business days.<\/p>\n\n\n\n
Step 4: Visa (e\u2011VITAS) and Limited Stay Permit (KITAS)<\/strong><\/h3>\n\n\n\nOnce your RPTKA is approved and the DKP-TKA fee is paid, Immigration will issue the e-VITAS approval. For most nationalities, you won\u2019t need to visit an Indonesian embassy or consulate anymore. The approval letter will be emailed to you as a PDF.<\/p>\n\n\n\n
All your foreign employee has to do is print the PDF, bring it along when they fly to Indonesia, and present it at the immigration counter upon arrival. Immigration will place a visa sticker in their passport, and from that moment, they can legally stay and work in Indonesia.<\/p>\n\n\n\n
Only a small group of \u201crestricted\u201d nationalities still need to pick up the visa at an embassy before traveling. If this applies to your worker, Immigration will mark the file \u201cTelex-Embassy\u201d and let you know which location they must visit.<\/p>\n\n\n\n
Step 5: Provide a Sponsorship & Guarantee Letter<\/strong><\/h3>\n\n\n\nEmployers must submit a Sponsorship and Guarantee Letter<\/strong> on company letterhead. This letter shows the company\u2019s responsibility for the foreign employee while they are in Indonesia.<\/p>\n\n\n\nThe letter should include:<\/p>\n\n\n\n
\n- A statement of sponsorship and responsibility for the employee\u2019s legal compliance<\/li>\n\n\n\n
- The foreign employee\u2019s personal and job details<\/li>\n\n\n\n
- The foreign employee\u2019s employment status<\/li>\n\n\n\n
- A commitment to cover repatriation costs if necessary<\/li>\n\n\n\n
- A copy of the company director\u2019s ID and signature<\/li>\n<\/ul>\n\n\n\n
Note: Bank deposits are only required for certain visa types, like the Second-Home Visa<\/a>. For standard work KITAS<\/a>, the guarantee is usually in the form of this letter: The foreign employee must provide an immigration guarantee.\u00a0<\/p>\n\n\n\nStep 6: Social Security (BPJS) and Tax Identification (NPWP)<\/strong><\/h3>\n\n\n\n
The Indonesia’s Government Regulation No. 34 of 2021<\/strong> <\/a>focuses on the use of foreign workers<\/strong> (known locally as TKA<\/em>). It explains:<\/p>\n\n\n\n This is the main regulation you\u2019ll deal with when hiring foreigners legally.<\/p>\n\n\n\n This regulation<\/a> made most of the application process online<\/strong>, through the Ministry of Manpower\u2019s TKA Online platform. It speeds up things like submitting the RPTKA and getting your IMTA (work permit approval). No more waiting in long lines or mailing paper forms.<\/p>\n\n\n\n This new regulation No. 40 of 2023<\/a> update strengthens digital processing and supports foreign investment professionals<\/strong> dan high-skill foreign employees<\/strong>. It also touches on visa types<\/strong> and aligns with changes to the limited stay permit (KITAS)<\/strong> to match modern business needs.<\/p>\n\n\n\n Issued by the Ministry of Law and Human Rights, Permenkumham No. 29 of 2021<\/a> covers immigration permits<\/strong> and visa categories, especially for those applying for a limited stay visa<\/strong> to work or invest in Indonesia. It helps define who qualifies, how long they can stay, and how to renew.<\/p>\n\n\n\n Not every company in Indonesia can hire foreign workers. Under Indonesian law, only certain legal entities and business entities are permitted to hire foreign employees. The government has set clear rules about who\u2019s allowed<\/strong> to do it and when<\/strong> it\u2019s appropriate. Let\u2019s break it down in simple terms.<\/p>\n\n\n\n To legally employ a foreign worker in Indonesia, your business must be one of the following:<\/p>\n\n\n\n So, if you\u2019re just starting a small local business (like a regular PT), you can\u2019t hire foreign employees unless you upgrade your business license or restructure as a PT PMA.<\/p>\n\n\n\n Indonesia doesn\u2019t allow just any job to be filled by a foreigner. The position must require special skills<\/strong>, usually something that can\u2019t easily be found in the local workforce. Indonesian regulations specify a list of job positions that are eligible to be filled by foreign workers.<\/p>\n\n\n\n Allowed roles typically include:<\/p>\n\n\n\n But roles like receptionist, cashier, admin assistant, or HR staff are strictly for local workers only<\/strong>.<\/p>\n\n\n\n You can\u2019t just hire a foreign worker overnight. Before hiring, your company needs to:<\/p>\n\n\n\n There\u2019s also a priority system: companies should always try to hire Indonesian workers first. Foreign hires are allowed only when there\u2019s a real need.<\/p>\n\n\n\n Hiring employees from overseas in Indonesia involves clear steps and requires strict adherence to Indonesian procedures and regulations to ensure compliance throughout the hiring process.<\/p>\n\n\n\n *USD equivalents calculated at IDR\u202f15,450\u202f=\u202fUSD 1<\/strong> (August\u202f2025).<\/p>\n\n\n\n *Processing times are indicative and assume complete documents.<\/em><\/p>\n\n\n\n First, your company must create an RPTKA. The RPTKA is a crucial document required for the legal penggunaan tenaga kerja asing (use of foreign labor) in Indonesia. Think of this as a detailed plan explaining why you need a foreign worker and the exact job they\u2019ll do. You\u2019ll submit this plan online through the Ministry of Manpower\u2019s website.<\/p>\n\n\n\n Here\u2019s a list of documents you\u2019ll typically need to prepare:<\/p>\n\n\n\n After submission, the Ministry reviews your plan. They\u2019ll check if you\u2019re hiring for roles allowed for foreign employees and ensure you have a clear training plan for your Indonesian workers. Approval usually takes between 5\u201315 working days.<\/p>\n\n\n\n Note: Certain categories, like shareholders who are directors or commissioners with investment of at least USD 1 million<\/strong>, are exempt from the RPTKA requirement<\/strong>.<\/p>\n\n\n\n With an approved RPTKA, the next step is to apply for the Foreign Worker Notification<\/strong>, also known as Notifikasi<\/strong>, which has replaced the old IMTA system under MOM Regulation No. 10\/2018 and Government Regulation No. 34\/2021.<\/p>\n\n\n\n At this stage, your company must pay the Compensation Fund for Foreign Workers (DKP-TKA)<\/strong>, which is USD 100 per month<\/strong> per foreign employee. This compensation is paid into a government development fund to support workforce development in Indonesia. Once payment is confirmed, the notification becomes active.<\/p>\n\n\n\n Processing usually takes 3\u20137 business days.<\/p>\n\n\n\n Once your RPTKA is approved and the DKP-TKA fee is paid, Immigration will issue the e-VITAS approval. For most nationalities, you won\u2019t need to visit an Indonesian embassy or consulate anymore. The approval letter will be emailed to you as a PDF.<\/p>\n\n\n\n All your foreign employee has to do is print the PDF, bring it along when they fly to Indonesia, and present it at the immigration counter upon arrival. Immigration will place a visa sticker in their passport, and from that moment, they can legally stay and work in Indonesia.<\/p>\n\n\n\n Only a small group of \u201crestricted\u201d nationalities still need to pick up the visa at an embassy before traveling. If this applies to your worker, Immigration will mark the file \u201cTelex-Embassy\u201d and let you know which location they must visit.<\/p>\n\n\n\n Employers must submit a Sponsorship and Guarantee Letter<\/strong> on company letterhead. This letter shows the company\u2019s responsibility for the foreign employee while they are in Indonesia.<\/p>\n\n\n\n The letter should include:<\/p>\n\n\n\n Note: Bank deposits are only required for certain visa types, like the Second-Home Visa<\/a>. For standard work KITAS<\/a>, the guarantee is usually in the form of this letter: The foreign employee must provide an immigration guarantee.\u00a0<\/p>\n\n\n\n\n
3. Ministerial Regulation No. 8 of 2021<\/strong><\/h3>\n\n\n\n
4. Government Regulation No. 40 of 2023<\/strong><\/h3>\n\n\n\n
5. Permenkumham No. 29 of 2021<\/strong><\/h3>\n\n\n\n
Who Can Hire & When<\/strong><\/h2>\n\n\n\n
1. Only Certain Companies Can Hire Foreigners<\/strong><\/h3>\n\n\n\n
\n
<\/a><\/strong>These are companies partly or fully owned by foreign investors. They are the most common type allowed to hire foreign nationals.<\/li>\n\n\n\n
<\/strong>Foreign companies that have a branch or office in Indonesia (but don\u2019t directly generate income) can hire foreign staff in certain roles, usually at the executive or advisory level.<\/li>\n\n\n\n
<\/strong>Some nonprofits and international bodies with legal standing in Indonesia may also hire foreigners for specific programs.<\/li>\n<\/ul>\n\n\n\n2. What Kind of Jobs Can Be Given to Foreign Workers?<\/strong><\/h3>\n\n\n\n
\n
3. Timing Matters, Too<\/strong><\/h3>\n\n\n\n
\n
Step-by-Step Hiring Process<\/strong><\/h2>\n\n\n\n
<\/figure>\n\n\n\nQuick Cost & Timeline (August 2025)<\/strong><\/h3>\n\n\n\n
Keperluan<\/strong><\/td> Government Fee \/ Contribution<\/strong><\/td> Approx. USD*<\/strong><\/td> Typical Processing Time**<\/strong><\/td> Key Notes<\/strong><\/td><\/tr> RPTKA Approval & DKP\u2011TKA payment<\/a><\/strong><\/td> DKP\u2011TKA = USD\u202f100\u202fper\u202fmonth of assignment (paid in IDR at BI mid\u2011rate)<\/td> Example\u202f6\u202fmo\u202f\u2248\u202fUSD\u202f600<\/td> 3\u20135 working days (Manpower)<\/td> RPTKA itself is free; pay DKP\u2011TKA before approval<\/td><\/tr> e\u2011VITAS \/ e\u2011KITAS \u2013 Category\u202fI<\/strong> (up to 6\u202fmonths)<\/td> IDR\u202f5,250,000<\/td> \u2248\u202fUSD\u202f340<\/td> 2\u20133 working days<\/td> Fee covers visa issuance & ITAS sticker<\/td><\/tr> e\u2011VITAS \/ e\u2011KITAS \u2013 Category\u202fII<\/strong> (up to 12\u202fmonths)<\/td> IDR\u202f7,350,000<\/td> \u2248\u202fUSD\u202f476<\/td> 2\u20133 working days<\/td> , <\/td><\/tr> e\u2011VITAS \/ e\u2011KITAS \u2013 Category\u202fIII<\/strong> (up to 24\u202fmonths)<\/td> IDR\u202f9,500,000<\/td> \u2248\u202fUSD\u202f615<\/td> 2\u20133 working days<\/td> , <\/td><\/tr> NPWP (Tax Number)<\/strong><\/td> No fee<\/td> , <\/td> Same\u2011day (online)<\/td> Expat validates NPWP online after KITAS issued<\/td><\/tr> BPJS Ketenagakerjaan & Kesehatan<\/strong> (if stay >\u202f6\u202fmo)<\/td> Employer\u202f+\u202femployee monthly contributions<\/td> Varies<\/td> 3\u20135 working days<\/td> Private insurance allowed for \u2264\u202f6\u202fmo assignments<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Step 1: Prepare Your Foreign Worker Utilization Plan (RPTKA)<\/strong><\/h3>\n\n\n\n
\n
Step 2: Get Approval for Your RPTKA<\/strong><\/h3>\n\n\n\n
Step 3: Obtain the Foreign Worker Notification (Notifikasi)<\/strong><\/h3>\n\n\n\n
Step 4: Visa (e\u2011VITAS) and Limited Stay Permit (KITAS)<\/strong><\/h3>\n\n\n\n
Step 5: Provide a Sponsorship & Guarantee Letter<\/strong><\/h3>\n\n\n\n
\n
Step 6: Social Security (BPJS) and Tax Identification (NPWP)<\/strong><\/h3>\n\n\n\n
![\"Non-Disclosure](\"https:\/\/visa-indonesia.com\/wp-content\/uploads\/hire-foreign-workers-in-indonesia-contract-1024x536.jpg\")
<\/figure>\n\n\n\n![\"Laptop,](\"https:\/\/visa-indonesia.com\/wp-content\/uploads\/hire-foreign-workers-in-indonesia-payroll-and-taxes-1024x536.jpg\")
<\/figure>\n\n\n\n![\"Businessman](\"https:\/\/visa-indonesia.com\/wp-content\/uploads\/hire-foreign-workers-in-indonesia-tips-1024x536.jpg\")
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