Hiring foreigners in Indonesia looks easier after recent reforms, but the legal risks are still real. One missing step can turn a “global hire” into an immigration and manpower violation overnight.
Presidential Regulation No. 20 of 2018 on Foreign Workers shows how the state treats foreign hires as an exception, subject to strict planning and oversight. Presidential Regulation No. 20 of 2018 on Foreign Workers
Under newer rules, an approved Foreign Worker Utilization Plan (RPTKA) now functions as the core licence for hiring foreigners in Indonesia, especially after Government Regulation 34/2021. Foreign Worker Utilization Plan (RPTKA) regulation
At the same time, immigration insists that every foreign worker also holds the correct visa and limited stay permit, not just a manpower approval on paper. Applying for a limited stay visa and KITAS is now tightly tied to that RPTKA. Official Indonesian Limited Stay Visa information
Many employers still talk about “IMTA” when hiring foreigners in Indonesia, even though the formal IMTA document has been merged into RPTKA approval or Notification. That confusion is one of the legal facts this article will clean up.
This guide turns complex regulations into 10 practical facts about hiring foreigners in Indonesia. If you understand them, you can plan headcount, avoid fines, and protect both your business and your foreign staff in 2026.
Table of Contents
- Why Hiring Foreigners in Indonesia Starts With Strategy
- Legal Foundations for Hiring Foreigners in Indonesia Today
- RPTKA, IMTA and Core Work Permit Steps in Indonesia Explained
- Key Compliance Duties Before Hiring Foreigners in Indonesia
- Real Story — Hiring Foreigners in Indonesia the Wrong Way
- Ten Legal Facts on Hiring Foreigners in Indonesia You Must Track
- Sanctions, Fines and Business Risks When Permits Are Ignored
- 2026 Action Plan for Hiring Foreigners in Indonesia Safely
- FAQ’s About Hiring Foreigners in Indonesia Work Permits ❓
Why Hiring Foreigners in Indonesia Starts With Strategy
Hiring foreigners in Indonesia is first a strategic question, not a form-filling exercise. You must define which gaps truly require expatriate skills and how long those roles will be needed.
This strategic map shapes which entities will sponsor the foreign workers, which job titles you may use, and whether you build local successors or rely on expatriates over the long term.
Legal Foundations for Hiring Foreigners in Indonesia Today
Hiring foreigners in Indonesia is allowed only when local workers cannot yet fill specific roles. Law and policy require employers to prioritise Indonesian workers and treat foreign staff as complementary.
The legal backbone comes from Presidential Regulation 20/2018, Government Regulation 34/2021 and technical manpower regulations. Together they define when RPTKA is compulsory and how it connects to visa and stay permits.
These rules also reserve certain positions for Indonesians, limit the duration of foreign roles and require education, experience and training obligations to be documented before the hire.
RPTKA, IMTA and Core Work Permit Steps in Indonesia Explained
Hiring foreigners in Indonesia always starts with RPTKA. This plan describes positions, locations, duration and training commitments, and must be approved by the Ministry of Manpower before work begins.
Historically, employers needed a separate IMTA after RPTKA approval. Today, RPTKA approval and Notification act as the work authorization, but “IMTA” remains widely used as shorthand for a work permit.
Once RPTKA and Notification are in place, the foreigner can proceed with work visa and KITAS. Only when the stay permit is issued may that person legally perform work inside Indonesia.
Key Compliance Duties Before Hiring Foreigners in Indonesia
Hiring foreigners in Indonesia also creates employer duties that go beyond the permit file. You must appoint an Indonesian counterpart, budget DKPTKA levy where required, and ensure payroll and tax systems are ready.
Companies should check that their own corporate licences and KBLI are consistent with the foreigner’s role. Misalignment between business line and job title can trigger questions during RPTKA review.
Internal HR and legal teams must understand contract terms, probation rules and termination procedures for foreign workers, which in many respects follow general manpower law but with extra sponsorship considerations.
Real Story — Hiring Foreigners in Indonesia the Wrong Way
Hiring foreigners in Indonesia looked simple to a Bali tech start-up that flew in a “consultant” on a business visa. He worked like staff: full-time hours, company email and local salary.
During a routine inspection, officers found him working at the office without any RPTKA or KITAS. The company argued he was only “training the team”, but screenshots and staff interviews told a different story.
The result was a fine, forced departure of the foreigner and a pause on new permit applications while the company cleaned up its structure. The short-cut hire delayed fund-raising and scared potential partners.
Ten Legal Facts on Hiring Foreigners in Indonesia You Must Track
Hiring foreigners in Indonesia means accepting at least ten core facts: RPTKA is mandatory in most cases, and without it you cannot lawfully employ a foreigner.
Second, KITAS is a stay permit, not a work permit by itself. Third, you cannot let foreigners work on visit visas or visa-free entries, even if they are “only helping” temporarily.
Fourth, only eligible entities may sponsor foreign workers. Fifth, positions and durations are capped. Sixth, training and knowledge transfer must be planned. Seventh, DKPTKA may be payable. Eighth, data must match across systems.
Ninth, directors and commissioners face exposure if breaches are serious. Tenth, repeat or serious violations can trigger bans on hiring foreigners in Indonesia or even wider reputational damage.
Sanctions, Fines and Business Risks When Permits Are Ignored
Hiring foreigners in Indonesia without proper authorization risks administrative sanctions, fines and, in serious cases, criminal consequences. Authorities can halt work and revoke approvals.
Immigration may deport foreign workers and specify re-entry bans. Manpower can restrict future RPTKA applications, leaving your company unable to bring in needed expertise for years.
Banks, partners and investors often treat major compliance failures as governance red flags. Due diligence on future deals will ask whether you have ever mishandled hiring foreigners in Indonesia.
2026 Action Plan for Hiring Foreigners in Indonesia Safely
Hiring foreigners in Indonesia safely in 2026 starts with a checklist. Map roles, confirm your entity can sponsor, and draft a realistic RPTKA that reflects actual duties and durations.
Align internal policies, contracts, payroll and tax with the RPTKA and KITAS data. Train HR and line managers so no one “invites” foreigners to work on the wrong visa.
Schedule periodic compliance reviews. When laws, job structures or business models change, revisit your foreign-hire strategy before regulators do it for you.
FAQ’s About Hiring Foreigners in Indonesia Work Permits ❓
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What is the first step in hiring foreigners in Indonesia?
The first step in hiring foreigners in Indonesia is preparing and securing RPTKA approval from the Ministry of Manpower for the planned positions.
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Is IMTA still required when hiring foreigners in Indonesia?
Formally the old IMTA has been replaced by RPTKA approval or Notification, but many people still use “IMTA” to refer to the underlying work authorization.
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Can a KITAS alone legalize hiring foreigners in Indonesia?
No. KITAS is a limited stay permit. It must be backed by a valid RPTKA and work authorization linked to a permitted position at an eligible employer.
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Which companies may be hiring foreigners in Indonesia legally?
Generally only properly licensed entities such as PT, PT PMA, representative offices and certain foundations can sponsor foreign workers under the rules.
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What are common mistakes when hiring foreigners in Indonesia?
Typical mistakes include using business visas for real work, skipping RPTKA, mismatching job titles, or forgetting training and DKPTKA obligations.
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How far in advance should we plan hiring foreigners in Indonesia?
You should plan at least several weeks ahead for standard cases and much longer for large projects or senior roles that require detailed RPTKA review.
