2015 New Work Permit Regulations in

Indonesia
2015 has brought several important changes to the regulations concerning work permits (IMTA)
and temporary stay permits (KITAS) in Indonesia. The changes have been substantial enough
that every company hiring foreign employees should be aware of them.
In this article I will introduce the changes and give some recommendations about the way
companies should go about them. If you need Indosights assistance to comply with the
regulations, feel free to contact us.
[This article has been revised after the Work Permit Regulation (No. 16/2015) was passed in
June 29, 2015.]

The process of getting temporary stay

permit (KITAS) and work permit (IMTA)
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1

Process
Persetujuan RPTKA (Rencana Penggunaan
Tenaga Kerja Asing)

Pre-IMTA/ Pre Working Permit

IMTA/ Working Permit

VITAS

KITAS

6
7

MERP/ Multiple Entry and Re-Entry Permit

Civil Registration

Explanation
Foreign Manpower Plan Approval, issued
by Ministry of Manpower.
Pre-IMTA procedure is replacing the TA-01
(recommendation for working visa) process.
The Pre-IMTA should be first approved, in
which the maximum duration given for the
position will be decided during this stage
before eventually proceeding to IMTA.
Work permit that allows foreign national to
be employed in Indonesia.
Limited stay permit. The validity of VITAS
will follows duration of working in the
Company (as stated in Pre-IMTA and
IMTA) and shall be calculated by the time
foreign national enters Indonesia
Limited stay permit card, follows the same
validity as VITAS
Issued separately and it gives the foreign
national the right to leave and re-enter
Indonesia with the same limited stay permit.
Follow the same validity as KITAS
Various documents required for living in
Indonesia such as family card or temporary

residential card.
Download new work permit process table as image

Typically the entire process takes 6 weeks and is handled by the consultant. Once the multiple
entry permit is issued the foreign national is free to leave and return to Indonesia and does not
have to stay in the country.

Extending work permit

In order to extend work permit (IMTA), following documents need to be prepared:

Proof of payment of DPKK (US$1200/year)

Copy of proof of payment to the foreign worker

Copy of foreign worker tax card (NPWP)

Copy of insurance policy from an Indonesian-based insurance company

Copy of joining national security program

Copy of appointment of Indonesian co-worker (only for Non Director and Non
Commissioner)

Realization report of transfer of knowledge and Indonesian co-worker training

Key changes in the work permit process

1. Local to foreigner hiring ratio
In order for a company to hire a foreign worker it now needs to hire at least 10 Indonesian
citizens. Commissioners and directors are excluded from this ratio.

2. Requirements for the foreign workers

The education of the worker needs to be related to the position.

Foreign worker needs to have relevant certificates and/or minimum 5 years of working
experience in a related position (commissioners and directors are excluded from this
requirement)

Have an Indonesian tax card (NPWP) after 6 months of working

Insurance policy from an insurance institution established under Indonesian Law

Proof of joining the national security program (BPJS Kesehatan andKetanagakerjaan) after
6 months of working

3. Non-resident commissioners and directors are now

also required to have work permit (IMTA)
Regardless of whether a foreign commissioner or directors stays in Indonesia or not, they are
now required to apply for IMTA. This includes also paying the annual US$1200 DPKK fees just
like expat workers.

1.
Ekspos procedure / interview at the Ministry of
Manpower for companies hiring foreign experts
All companies hiring foreign experts are now required to pass an interview at the Ministry of
Manpower to get the RPTKA (step 1, see above) issued. This makes the approval process much
more difficult and will eventually put an end to the use of agents that act as an employer on
paper but actually the foreign national is only using it for staying in Indonesia.
Be very careful with agents that claim to get you a work permit without actually having to be
employed. They are either not aware of the new regulations or just plainly try to rip you off.

2.
Extra limitations for the service, trading and
consulting companies
If the companies in the mentioned sectors want to hire foreign nationals for managerial roles,
Ministry of Manpower will look at their suitability for the job such as age, qualifications and
work experience.
Since there are no official required qualifications set by the law, it will be open to interpretation
by the official handling your particular case.
Additionally, companies in those sectors are only allowed to hire foreign nationals at advisory
roles such as marketing advisor, quality control advisor, research and development advisor,
market research advisors, etc.
While those roles are allowed, its not guaranteed that every application will get granted.
Ministry of Manpower will decide whether the company is required to fill that job with a foreign
national or not.

3.

Shorter work permit validity

Foreign experts in the service, trading and consulting companies are getting the work permit
recommendation only for 6 months instead of the previous 1 year.
The same rule applies for companies in other sectors that wish to hire foreign nationals for jobs
related to machinery installation and maintenance or whose education is at high school or
vocational school level.
For commissioners, directors and managerial levels the 12 month work permits are still issued.

What the new work permit regulations

mean for the companies hiring foreign
nationals?

The biggest change is probably that commissioners are now treated the same way as expat
workers regardless of whether they even stay in Indonesia or not. They need to get work
permit, tax card, BPJS.

The punishment for not complying with the regulations are incredibly tough in Indonesia. For
example misusing residence permit goes under criminal (!) investigation and the law allows
foreigners to be sentenced for up to 5 years in prison (Immigration Law, Article 122).
The number of epa
NB! The changes in the regulations make it absolutely crucial that foreign nationals extend their
limited stay permits and work permits on time. Otherwise theyll permits lose validity and the
process needs to be started from beginning again and this time following the new regulations.
Start the extension process at least 2 months before the KITAS and IMTA expire. Indosight
clients dont need to worry about it as we will make sure to remind them about the need to renew
their permits.
Get the work permit here.