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Employing Expatriates in Indonesia

The employment of expatriates in Indonesia is regulated by the Menteri Tenaga Kerja (Manpower Ministry). Visas for expatriates are issued by the Directorate Jenderal of Immigration, under the Ministry of Justice. There are many documents that are required and need to be processed by these two government entities in order for a foreigner to work and live in Indonesia.

To hire foreigners the Indonesian based company need to explain to the Government why it needs foreign workers. For an expat to be legally hired in Indonesia, these are the requirements:

PerMen No. 10 Year 2018
Article 5

A foreign worker must:

a. have an education diploma related to the qualifications required for the work position;
b. have a competency certificate or have work experience of at least 5 years related to the qualifications required for the work position;
c. transfer his/her expertise to a designated Indonesian worker;
d. have an Indonesian Tax Registration Number if he/she will work for more than 6 months; and
e. have Work Visa/e-ITAS issued by the Indonesian Immigration Department.

 

Ministry of Manpower Laws/Regulations

2003 - Presidential Manpower Act No. 13/2003

2011 - Law No. 6 - year 2011 - Article 122

2015 - No. 16 of 2015 - Tata Cara Penggunaan Tenaga Kerja Asing

Interpretation/Clarification from Makarim & Taira S.

2016 Manpower Law update - Peraturan Menteri Ketenagakerjaan RI No. 35/2016

2018 Manpower Law update - Peraturan Menteri Ketenagakerjaan RI No. 10/2018

2021 - UU No 6 2021 re:Manpower Law No. 6 - year 2011 - Article 122

2023 - UU Job Creation Law No 6 2023 that changes Manpower Law UU no.13, Year 2003 Article 185

 

Manpower Ministry website

 

For more information, see:

Info on Work Permits, Visas and other required Documents

Employee Compensation Benefits: Indonesian Regulations

Background Checks and Employee Screening

Job seekers - Looking for a Job in Indonesia

Interview Guide for Job Applicants

Jakarta Headhunters

Executive Search Consultants in Singapore and Hong Kong

Psychometric Assessments – an indispensible tool for Executive Search & HR Professionals

 

 

Thank you to PT Widya Presisi Solusi for providing updates on relevant laws.

 

Last updated June 27, 2023