Country：印尼 · Employment & Work Visas
Indonesia · Employment & Work Visas
Indonesia employment is local-hire dominant; foreign workers need a Limited Stay Work Permit (KITAS) and must meet localisation ratios. Investors holding ≥ IDR 10 billion personal shares can apply for Investor KITAS — note this differs from the IDR 2.5 billion paid-in-capital rule. Social insurance is via BPJS (health & employment); employer ~9%–11%, employee 2%. 2025 provincial minimum wages rose; the religious-holiday bonus (THR) is mandatory.
Key points
- Foreign workers need KITAS (Limited Stay Work Permit); employer must file RPTKA plan and pay DPKK skill fund.
- Investor KITAS: personal holding ≥ IDR 10 billion required (distinct from IDR 2.5bn paid-in-capital threshold).
- Localisation: foreign-to-local worker ratio regulated; some roles must prioritise locals.
- BPJS social insurance: health employer ~4% / employee 1%; employment employer ~5.7% / employee 2%; plus JHT, JKK, JKM.
- Mandatory benefits: THR religious-holiday bonus (≥1 month salary), severance (up to 9 months).
Procedure
- File RPTKA foreign-worker plan and apply to Ministry of Manpower.
- Apply KITAS (investor or work type) for foreign workers.
- Register BPJS and pay for all employees.
- Sign employment contract (Indonesian) complying with minimum wage & THR.
- Submit annual foreign-worker report and pay DPKK.
Hard requirements
- RPTKA plan; KITAS; BPJS registration; local-worker-ratio compliance.
Costs
DPKK skill fund (~USD 1,200/foreign worker/year); social insurance; THR & severance reserves.⏱ ⏱ Timeline：KITAS ~2–4 weeks; BPJS registration days.⚠ Common risks
- Hiring foreign workers without RPTKA → heavy fine & deportation.
- Severance & THR non-compliance → labour litigation.
- Investor KITAS threshold (IDR 10bn) above paid-in capital → minority shareholders cannot get visa.
Handbook
📘 Step-by-Step Handbook (with owner / timeline / cost / penalties)
Applies to：PT PMA hiring foreign workers (director/commissioner) and local employees, handling KITAS, RPTKA, BPJS and labour compliance.
Prerequisites
- Company incorporated with NIB/NPWP.
- Foreign roles and localisation ratio planned.
- Confirmed foreign person's shareholding (Investor KITAS needs personal holding ≥ IDR 10bn) or role (Work KITAS).
- Aware of 2025 provincial minimum wages and mandatory THR.
| Step | Action | Owner | Timeline | Cost | Official form / system | Notes & penalties |
|---|---|---|---|---|---|---|
| 1 | File RPTKA foreign-worker plan & apply Employer must first obtain RPTKA (foreign-worker utilisation plan) and pay DKP-TKA (foreign-worker compensation fund, USD 100/month per worker, prepaid by permit period). | Company / Ministry of Manpower (Kemnaker) | 1–2 weeks | Admin fee; DPKK skill fund USD 100/month/worker (prepaid) | RPTKA (Rencana Penggunaan Tenaga Kerja Asing) | Penalty：Hiring without RPTKA → heavy fine & deportation |
| 2 | Apply KITAS (investor or work) for foreign workers Investor KITAS needs personal holding ≥ IDR 10 billion (immigration rule independent of BKPM paid-in threshold), exempt from IMTA & DPKK; Work KITAS needs RPTKA support, 1 or 2 years, renewable. | Immigration (Imigrasi) | 2–4 weeks (complete docs) | Visa/residence fee | KITAS (E28A Investor / Work) | Penalty：Working without KITAS is illegal employment, fine & deportation |
| 3 | Register BPJS & pay for all employees Employer must register all employees (incl. foreigners) for BPJS health & employment and pay on time. | Company / BPJS | Days | Health employer ~4% + employee 1%; employment employer ~5.7% + employee 2% (rates per official, medium) | BPJS Kesehatan + BPJS Ketenagakerjaan registration | Penalty：Non-coverage → labour-inspector penalty |
| 4 | Sign Indonesian employment contract, comply with minimum wage & THR Pay per 2025 provincial minimum wage; THR religious-holiday bonus mandatory (≥1 month salary); severance up to 9 months, reserve accordingly. | Company / Employee | At hiring | Salary & THR (≥1 month) | Written employment contract (Indonesian) | Penalty：Violating minimum wage or THR → labour litigation & penalty |
| 5 | Annual foreign-worker report & DPKK payment Submit foreign-worker usage report per Kemnaker, keep paying DPKK, consistent with BKPM LKPM. | Company / Kemnaker | Annual | DPKK renewal | Annual foreign-worker report | Penalty：No report or inconsistent with LKPM → KITAS renewal blocked |
| 6 | Localisation ratio & local-priority compliance Maintain compliant foreign-to-local ratio; some roles must prioritise locals; foreign roles must match RPTKA, update on change. | Company / Ministry of Manpower | Ongoing | None | Local employee roster | Penalty：Uncontrolled foreign ratio or locals bypassed → questioned |
✅ Self-check list
⚠ Common pitfalls
Hiring foreign worker without RPTKA影响：Heavy fine, penalty & deportation规避：Obtain RPTKA and pay DPKK first, then KITAS
Investor KITAS threshold misjudged影响：Minority shareholder (< IDR 10bn personal) cannot get visa, entry blocked规避：Distinguish BKPM IDR 2.5bn paid-in from immigration IDR 10bn personal holding; plan structure upfront
THR & severance non-compliance影响：Labour litigation, back-pay & reputation risk规避：THR mandatory ≥1 month salary; severance accrued by tenure, up to 9 months
BPJS omission or wrong rate影响：Labour-inspector penalty (rates per official, medium)规避：Cover all (incl. foreigners), apply BPJS current official rates
KITAS mismatched with role/shareholding影响：Immigration violation, renewal refused (esp. Bali tighter)规避：KITAS type strictly aligned with RPTKA & shareholding; update on change
Zero LKPM & disconnected shareholders影响：BKPM tighter review from 2025, KITAS renewal may be refused规避：Maintain real operations & file quarterly LKPM; avoid shell status
📅 Ongoing post-incorporation obligations
- RPTKA & DPKK kept valid & renewed annually.
- BPJS paid monthly.
- THR & minimum wage calibrated annually (by province).
- Annual foreign-worker report consistent with LKPM.
- KITAS renewal synced with role or shareholding changes.
🔗 Official portals
📎 Source：https://www.imigrasi.go.id ; https://www.kemnaker.go.id ; https://bpjs-kesehatan.go.id
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