Yes, but a new KITAS and IMTA must be obtained; the old one must be canceled.
Bringing foreign employees into the Indonesian workforce is not as simple as signing a contract. It involves a series of immigration and manpower compliance steps—most notably, securing a Work KITAS. The Work KITAS (Kartu Izin Tinggal Terbatas) is more than just a document—it’s a legal cornerstone that grants foreign nationals the right to reside and work in Indonesia lawfully. Failing to obtain or renew this permit can result in serious consequences for both employers and employees. This article aims to walk you through the legal requirements, employer obligations, and common pitfalls, with practical insights from our experience at Kusuma & Partners Law Firm.
At its core, a Work KITAS is a limited stay permit specifically intended for employment purposes. It is designed for foreign nationals who plan to work in Indonesia for more than 60 days. Whether you’re a CEO of a foreign investment company (PT PMA), an IT consultant, or a regional manager in a multinational firm, this legal document is mandatory.
So, who exactly needs a Work KITAS? The answer includes foreign directors, commissioners, experts, and technical professionals—anyone actively involved in the day-to-day operations of a business. Notably, even if a foreigner is only working temporarily or under a short-term contract, they may still need this permit if their activities are considered employment under Indonesian law.
Employers must understand that the KITAS is not optional—it is a legal prerequisite for employing foreign talent in Indonesia. Overlooking this requirement can jeopardize your entire business operation.
Understanding the legal foundation of the Work KITAS is crucial. The process is governed by several regulations, including:
These laws serve as the backbone for both employers and employees when it comes to rights, obligations, and legal procedures. The government designs each provision to strike a balance between welcoming foreign expertise and protecting local job markets.
Before proceeding, you must recognize that different types of KITAS offer different rights and limitations. Indonesia offers various types of KITAS, each with its own purpose:
For employers, distinguishing between these KITAS types is critical. Misapplying for the wrong one could delay onboarding, trigger legal audits, or lead to penalties.
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The process of obtaining a Work KITAS involves multiple government agencies and must follow a rigid process.
Everything begins with the RPTKA (Rencana Penggunaan Tenaga Kerja Asing), or Foreign Worker Utilization Plan. You must submit this document to the Ministry of Manpower to justify the company needs to hire a foreign national.”
Companies must demonstrate that no qualified Indonesian can fill the position. The RPTKA must also specify job title, duration, and qualifications of the foreign hire.
Once the RPTKA is approved, the employer must obtain an IMTA (Work Permit) from the Ministry of Manpower. This legally authorizes the foreign national to work in the specified position.
Without an IMTA, the foreigner cannot perform any work, even if they are already present in Indonesia.
With an IMTA in hand, the employer proceeds to apply for a KITAS. This includes submission of supporting documents, paying visa fees, and waiting for approval from immigration.
Once approved, the foreign employee receives an e-Visa, enters Indonesia, and then completes the final steps.
Upon arrival in Indonesia, the foreigner must register within 30 days at the nearest immigration office. Here, biometric data will be collected, and the physical KITAS card will be issued. Failure to report within this timeframe may result in the visa being revoked.
Once the KITAS is issued, the employer’s responsibility is far from over. Indonesian law imposes ongoing obligations, including:
Employers must also submit regular reports to the Ministry of Manpower and immigration authorities. Neglecting these obligations can trigger audits, fines, or even a ban from hiring foreign workers in the future.
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Typically, a Work KITAS is granted for 6 to 12 months, depending on the contract and RPTKA approval. It can be renewed multiple times up to a maximum cumulative stay of 5 years. Thus, initiate the renewal process at least 30–45 days before the permit expires. Late renewals can result in overstay penalties.
After repeated renewals, a foreigner may be eligible to apply for a KITAP (Permanent Stay Permit), particularly if they occupy a high-level executive position or are married to an Indonesian citizen.
Here’s where things often get misunderstood: having a KITAS doesn’t automatically make you a taxpayer—but your duration of stay might.
Under Indonesian tax law, a KITAS holder is considered a tax resident if:
As a tax resident, the foreigner must:
Employers must also withhold and report monthly PPh 21 income tax from the employee’s salary.
Many companies forget to inform their foreign hires about tax responsibilities—this often leads to confusion, back taxes, or penalties.
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Ignoring KITAS regulations is not just a regulatory misstep—it’s a serious legal offense. Here are potential consequences:
Non-compliance also opens the company to reputation damage, affecting investor trust and employee morale. In our practice, we’ve handled cases where simple administrative errors led to legal nightmares.
Despite the challenges, a Work KITAS offers enormous advantages for both employers and employees.
For employers:
For foreign employees:
In short, the Work KITAS unlocks the door to long-term professional stability in Indonesia.
Many companies we assist underestimate the coordination required between immigration and manpower offices. Delays often arise not only from legal complexity, but also due to document inconsistency or miscommunication. Our firm bridges these gaps efficiently, ensuring every legal box is checked, avoiding costly errors.
Navigating the legal landscape of Work KITAS for Foreign Employees: Legal Requirements and Employer Obligations requires diligence, planning, and the right legal support. For companies aiming to grow sustainably while staying compliant, this process should be handled with care—not just to tick a box, but to ensure long-term operational success.
Are you ready to bring foreign talent into your Indonesian business? Contact us today to begin your journey.
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“DISCLAIMER: This content is intended for general informational purposes only and should not be treated as legal advice. For professional advice, please consult with us.”
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