Thinking of Living and Working in Indonesia? Then You’ll Need an Eligible Visa.

Work Permit and Business Visas in IndonesiaFor a foreigner to legally live and work in Indonesia, they require the proper work permit and business visa. With several options available, it’s important to familiarise yourself with each.

Understanding Your Visa Options
The Immigration Law in the country is always changing. Before applying for any visa, it is important to check if any recent changes have been made. There are two common visas for those who want to do business locally. However, a business visa is different from a work permit:

  • Work permits are for those who want to work in the country and earn a wage or salary compensation.
  • A business visa is for those intending to undertake business-related activities such as conferences, training and seminars. You cannot be employed with this visa.

 

Understanding IMTA vs KITAS

A work permit in Indonesia is called a KITAS (Kartu Izin Tinggal Terbatas). However, the actual name of a work permit is IMTA (Izin Mempekerjakan Tenaga Kerja Asing). This is why there is sometimes confusion around the visas. An IMTA is also known as a temporary Expatriate Work Permit.

The IMTA allows you to sit ad work daily in your Indonesian company. A KITAS, which is a temporary stay permit) is applicable when you already have a company set up locally and you want to attend regular meetings.

Requirement documents to obtain your KITAS:

  1. Complete the form
  2. Photocopies and originals of the national passport or travel documents and proof of visa;
  3. Photocopy and original KITAS (for those who already have KITAS)
  4. Application letter from the Guarantor
  5. Guaranteed letter from the stamped guarantor
  6. KTP (E-KTP) Guarantor
  7. Domicile Letter
  8. Power of Attorney if a person has been assigned to do the process

To stay for a significant period of time in the country, especially if you’re a board member, you need an IMTA. Without an IMTA, you could be liable for an IDR500 million fine and 5-years jail time. Once you have obtained an IMTA, you will be issued with a VITAS, which is a limited stay permit. You will also be issued with an Electronically limited stay permit (ITAS) at the same time. A foreigner must have a VITAS before they can get their KITAS. It is highly recommended you seek the advice of a professional consultant of Immigration like 3E Accounting to avoid any confusion.

 

Requirements to Secure Your Visa

If you are an employer, you will need to refer to Article 5 and 6 of Minister Regulation 12 of 2013. This touches on the Procedures for the Use of Foreign Manpower. An employer who intends to hire foreigners must get the Foreign Manpower Utilization Plan (RPTKA) before doing so. RPTKA’s are issued by the Ministry of Manpower.

For employees who want to obtain a work permit, you will need to refer to Article 36, Government Regulation No. 35 in 2015. The eligibility requirements include:

  • Suitably qualified and educated for the intended position.
  • Holds the required competency certificates. Alternatively, you must have a minimum of 5-years’ work experience relevant to the position.
  • Provide a statement letter and training report. These must indicate why it is necessary to transfer the knowledge, skills and expertise. It must also indicate your employer’s influence.
  • Hold the necessary insurance proof. This must be from an Indonesian company.
  • Hold a Taxpayer Registration Number (NPWP).
  • If you have worked for 6-months locally, you must be already registered in the National Social Security System (Jaminan Social Nasional).

To obtain your IMTA, the following documents are required:

  1. Evidence of DKPTKA (Dana Kompensasi Penggunaan Tenaga Kerja Asing/Foreign Manpower Utilisation Compensation Fund Levy) payment through a government bank designated by the Minister (USD1,200/annually).
  2. The decision of endorsement of RPTKA (Rencana Penggunaan Tenaga Kerja Asing/Foreign Manpower Utilisation Plan) (not required for a shareholder with the position as a member of a Board of Directors or Board of Commissioners; a diplomatic or consular officer at an embassy and an employee of a government department designated by the relevant minister).
  3. Deed of Establishment and MOLHR Approval.
  4. NIB and other business licenses.
  5. Passport of the TKA (Tenaga Kerja Asing/Foreign Worker) to be employed.
  6. Colour photo of the TKA (size 4 x 6 cm).
  7. Appointment letter(s) of the Indonesian labour companion (TKI pendamping).
  8. Have education in accordance with the conditions of the position to be occupied by TKA.
  9. Have a competency certificate or have work experience in accordance with the position to be occupied by TKA for at least 5 (five) years.
  10. Draft work agreements or appointments for work.
  11. Proof of an insurance policy at an insurance company incorporated in Indonesia.
  12. Recommendations from authorized agencies if needed for TKA to be employed by TKA employers.

Per Immigration Law Article 4, Regulation No. 31 in 2013, foreigners in these sectors will not be allowed to get work permits:

  • Legal entities
  • Human resources
  • Health, safety, and environmental affairs
  • Quality control and inspection
  • Supply chain management

 

How to Secure Your Work Permit in Indonesia

The general process of securing your permit is as follows:

  • The Ministry of Manpower grants the RPTKA approval for your sponsor company.
  • The sponsor company undergoes the Pre-IMTA/Pre-work Permit requirements. You will be notified of how long you can live and work in the country.
  • Pay the advance fee of USD100 monthly to the Development Funds in Exchange of hiring a foreign worker (DKP-TKA).
  • Your IMTA will be approved, allowing you to legally work in the country.
  • You will be issued with a VITAS. This must be converted to a KITAS once you arrive in the country.

To obtain your RPTKA, you must submit the following documents:

  • A completed application form for RPTKA
  • A letter that details why a foreigner is being hired and what their role in the company will be.
  • A copy of the deed of establishment and each amendment (if any) + MOLHR approval.
  • A copy of the NPWP, and business licenses (Izin Usaha/Izin Lokasi/NIB (OSS)).
  • A copy of the Wajib Lapor. This is an annual report that specifies how many ex-pats and locals are employed in the company. This must be submitted to the Labour Department.
  • Details of the organisational structure of the company.
  • Position recommendations to be occupied by TKA from technical agencies in accordance with applicable regulations in the relevant technical agencies.
  • Letter of appointment of companion TKI and assistance program plan.
  • An affidavit to carry out work education and training for migrant workers in accordance with the qualifications of the position occupied by TKA.
  • Proof of compulsory employment report in accordance with Law No. 7 of 1981.
  • A recommendation from an alternative institution. The recommendation is for certain types of companies like transportation, oil and gas, and mining.

 

How Long Is My Permit Valid For?

Your work permit can range anywhere from one month to 12-months. This will depend on your industry. The different validity periods include:

  • 1 Month Validity – For emergency or urgent permits. This is usually for urgent jobs that require immediate action to avoid detrimental consequences to the company or society overall.
  • 2 to 6-Months Validity – Applicable to temporary work permits. Eligible industries include services, trading and consulting, and maintenance and installation of machinery.
  • 7 to 12-Months Validity – There are long-term work permits. Generally granted to upper-level management, commissioners and directors.

 

Getting Your KITAS Card

After securing your ITAS, you may apply for your KITAS Card. The card allows you to stay for up to 2-years in Indonesia. Your stay can be extended for 2-years each time. The maximum stay is 6-years.

If you are concurrently employed with more than one employer, you must submit a report to the Indonesian Ministry of Manpower.

 

Stay Up-to-Date with 3E Accounting

Since the regulations change from time to time, applicants should seek professional advice before applying for a work permit or business visa in Indonesia. 3E Accounting is well-versed with the local regulations. This puts us in the best position to help you sort out your application process. For more information about our Indonesian visa application services, contact our team today.

 

Work Permit and Business Visas in Indonesia