Foreign Workers and Expatriates in Indonesia: Employment Overview

1. National Regulations Governing Foreign Workers

• Law No. 13/2003: The primary legislation governing employment in Indonesia, including provisions for foreign workers.
• Presidential Regulation No. 20/2018: Outlines the employment of foreign workers, including the requirement for a work permit (IMTA) and a limited stay visa (VITAS).
• Ministry of Manpower Regulations: Specific regulations detailing the procedures and requirements for hiring foreign workers.

2. Standard Procedures for Obtaining Work Permits

1. Employer Registration: The Indonesian employer must be registered and have a valid business license.
2. Request for Foreign Worker Utilization Plan (RPTKA):
   • Submit an RPTKA to the Ministry of Manpower, detailing the need for foreign workers.
   • Approval is required before proceeding to the next steps.
3. Work Permit Application (IMTA):
   • After RPTKA approval, apply for an IMTA through the Ministry of Manpower.
   • Required documents include:
     • RPTKA approval letter
     • Company registration documents
     • Job description and qualifications
     • Passport copy of the foreign worker
4. Visa Application:
   • Apply for a Limited Stay Visa (VITAS) at an Indonesian embassy or consulate.
   • Required documents include:
     • IMTA
     • RPTKA
     • Passport with at least 6 months validity
5. Arrival and Stay Permit:
   • Upon arrival in Indonesia, convert VITAS to a Limited Stay Permit (KITAS) at the local immigration office.
   • This process includes biometric data collection and issuance of the KITAS.

3. General Costs Associated with Employment-Related Processes

• RPTKA Application Fee: Approximately IDR 1,000,000 to IDR 2,000,000 (varies by region).
• IMTA Application Fee: Ranges from IDR 1,000,000 to IDR 3,000,000.
• VITAS Fee: Approximately IDR 1,500,000 to IDR 3,000,000.
• KITAS Fee: Ranges from IDR 1,000,000 to IDR 2,500,000.
• Additional Costs: Medical check-ups, legal assistance, and potential recruitment agency fees.

4. Country-Specific Considerations

• Quota System: Certain sectors have limits on the number of foreign workers allowed. Employers must comply with these quotas.
• Local Workforce Requirement: Employers are encouraged to hire local workers and provide training to them.
• Cultural Sensitivity: Understanding local customs, language, and business etiquette is crucial for successful integration.
• Work Culture: Hierarchical structures are common; respect for authority and seniority is important.

5. Cultural Aspects for Foreign Workers

• Language: While English is spoken in business contexts, learning basic Bahasa Indonesia can enhance communication and relationships.
• Networking: Building relationships is key; engage in social activities and local events to foster connections.
• Work-Life Balance: Indonesian work culture may involve longer hours; however, personal relationships and family are highly valued.
• Religious Considerations: Be aware of local religious practices, especially during Ramadan, which may affect work schedules.

Conclusion

Navigating the employment landscape as a foreign worker in Indonesia requires understanding the legal framework, following proper procedures for work permits, and being aware of cultural nuances. Proper preparation and respect for local customs will facilitate a smoother transition and successful employment experience.