Indonesia’s Working Permit Update: What Employers Must Know

A work permit in Indonesia is mandatory for companies employing foreign professionals. As businesses continue to bring international expertise into leadership and technical roles, the government has increased oversight to ensure that foreign workers are employed under the appropriate legal framework. 

Recent regulatory developments and enforcement actions indicate that compliance with working permit requirements in Indonesia is under closer scrutiny. For employers, this means understanding the process, preparing the required documentation, and properly managing foreign worker permits to avoid operational and regulatory risks. 

Why Foreign Worker Permits Are Getting Stricter 

Supervision of foreign workers in Indonesia has increased as the government strengthens enforcement of employment and immigration regulations. 

In 2026, the Ministry of Manpower acted against 12 companies that violated foreign worker (TKA) regulations, highlighting more active oversight. Violations ranged from administrative issues to improper employment of foreign workers, emphasizing the importance of complying with work permit requirements in Indonesia. 

Companies sponsoring expatriates are also expected to act as responsible guarantors, ensuring foreign workers comply with immigration and employment rules and perform roles aligned with the company’s licensed business activities.

READ MORE:

• New Custom Declaration Rules for KITAS Holders and Returning Indonesian Citizens
• Employer of Record Services for Hiring Expats in Indonesia
• Business Visa Indonesia: Requirements, Types, Costs & How to Apply

What’s New in Indonesia’s Work Permit Rules 

Indonesia has simplified several visa categories for foreign employment. While companies still need to obtain a work permit in Indonesia, the government has streamlined visa categories to clarify the process for employers and foreign professionals. Key updates include: 

• Fewer Work Visa Categories: Indonesia has reduced the number of work visa categories from 31 types to six, simplifying the overall immigration structure. 
• Single Visa Index for Company-Sponsored Workers: Previously, foreign professionals sponsored by companies used multiple visa indexes ranging from E23B to E23W. These are now unified under a single E23 visa index. 
• New Visa Indexes for Non-Corporate Sponsors: Two new indexes, E23U and E23V, were introduced for foreign workers sponsored by institutions or non-corporate organizations. 

Although the visa structure has been simplified, employers must still ensure that the correct work permit in Indonesia is secured before a foreign professional begins work.

How to Get a Work Permit in Indonesia 

Obtaining a working permit in Indonesia involves several administrative steps between the Ministry of Manpower and immigration authorities. The process follows the framework established under Government Regulation No. 34 of 2021 and the Ministry of Manpower Regulation No. 8 of 2021, as well as current immigration practices. 

Submit an RPTKA 

The process begins with submitting an RPTKA (Foreign Worker Utilization Plan) to the Ministry of Manpower. This document explains the company’s need to hire a foreign professional, including the job position, duration of employment, and justification for bringing in foreign expertise. 

Receive Work Permit Notification and Complete Payment 

Once the RPTKA is approved, the employer must obtain a work permit notification and complete the DKP-TKA payment, a mandatory compensation fund paid by companies that employ foreign workers. 

Apply for the VITAS 

After the work authorization is issued, the employer proceeds with the VITAS (Limited Stay Visa) application. This visa allows a foreign professional to enter Indonesia for employment. 

Convert the Visa into a KITAS 

Upon arrival in Indonesia, the VITAS must be converted into a KITAS (Limited Stay Permit). This permit allows the foreign worker to reside and work legally in Indonesia during the approved employment period. 

What Employers Must Prepare Before Applying for a Working Permit 

Before applying for a working permit in Indonesia, both the employer and the foreign worker must meet certain eligibility requirements. Authorities review whether the sponsoring company is permitted to employ foreign workers and whether the expatriate has the qualifications needed for the role. 

Employer and Worker Eligibility 

Not all entities are allowed to employ foreign workers. Employers that may apply for a work permit in Indonesia generally include: 

• Indonesian private companies 
• Foreign investment companies (PT PMA) 
• Representative offices 
• International organizations 

Foreign workers must also demonstrate: 

• Relevant education 
• Sufficient professional experience 
• Ability to transfer skills to Indonesian counterparts 

Integrated Work Permit and Immigration Process 

The work permit process in Indonesia is closely linked to immigration procedures. Employers must first obtain RPTKA approval and complete the DKPTKA payment. 

After that, the foreign worker applies for a VITAS, which is later converted into a KITAS upon arrival in Indonesia, allowing the individual to live and work legally in the country. 

Employer Responsibilities for Compliance 

Even after the permit is issued, employers remain responsible for compliance. Companies must ensure that foreign workers: 

• Perform only the approved role 
• Participate in knowledge transfer 
• Follow reporting and documentation requirements 

Employers are also expected to maintain proper records and cooperate with government inspections when required. 

Risks of Non-Compliant Working Permit Applications 

Failing to secure the proper working permit in Indonesia can expose companies to significant legal and operational risks. Indonesian authorities closely monitor the employment of foreign workers, and violations may result in administrative sanctions or legal consequences. Common risks include: 

• Administrative Penalties for Employers: Companies that employ foreign workers without proper work permits may face fines or other sanctions from authorities. 
• Revocation or Suspension of Permits: Authorities may suspend or revoke the company’s approval to employ foreign workers if violations are found. 
• Immigration Consequences for the Foreign Worker: Foreign nationals working without a valid work permit in Indonesia may face visa cancellation, deportation, or entry bans. 
• Operational Disruptions: Non-compliance may trigger investigations or inspections, disrupting business operations and delaying projects involving foreign employees. 

Companies hiring foreign professionals should ensure that all immigration and employment requirements are met before the employee begins work in Indonesia.

Secure Your Working Permit in Indonesia with InCorp 

Applying for a work permit in Indonesia requires coordination between the Ministry of Manpower and immigration authorities. Managing the process properly helps ensure foreign professionals can work legally while minimizing compliance risks for employers. 

InCorp Indonesia (an Ascentium Company) supports companies throughout the work permit process in Indonesia, including: 

• Work permit application support, from RPTKA preparation to immigration processing 
• Guidance on eligibility and documentation for foreign employees 
• Coordination with relevant authorities during the application process 
• Ongoing compliance support for foreign worker permits 

Fill out the form below to navigate the work permit process in Indonesia more smoothly while staying aligned with current regulatory requirements.

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