The Workers Rights 
The foreign worker onboarding process in Indonesia has been modernized with compliance being very important for multinational companies, Employer of Record companies and PT PMAs. To make it possible for foreigners to work and stay in the country, employers must go through the Rencana Penggunaan Tenaga Kerja Asing (RPTKA) process and then the E23 Working KITAS.
RPTKA Approval Comes First
The sponsoring employer needs to be approved by the Ministry of Manpower of Indonesia before giving E23 visa. The employer sends up its Foreign Worker Utilization Plan via the appropriate digital systems and then the necessary development contribution is paid.
Based on the framework provided, the DKP-TKA contribution will be equal to US$1,200 per year per foreign employee, or US$100 per month. Employers should, in principle, have at least 10 Indonesian staff members on each foreign worker, and have a local staff member to carry out knowledge transfer on any foreign individual holding a significant role in the business, other than positions in the C-suite.
Understanding the E23 Working KITAS
For foreign nationals that work for companies in Indonesia, they are given a standard work permit and residency called an E23 classification. The permit period can be granted from one to two years, provided it can be renewed to a total of six years as per the rules provided.
Typically, candidates will have an accredited university degree and 5+ years of related professional experience. The framework also sets that passports should have about 18–20 months of left to validity time at the time of validation.
Important Compliance Restrictions
A foreign worker can only undertake work that is in the permit he/she holds and a work placement or employment in the same job title, same sponsor, same location as in his/her permit. If moving from one regional office to another, or to tasks and activities not listed in the permit, an amendment is required.
It is also important that employers do not use business or tourist visas for “operative” employment. The provided advice states jobs that are done without permission will lead to immigration fines, detention, deportation, fines to businesses, and the possibility of blacklisting.
In addition, employers need to take care of the necessary Exit Permit Only (EPO) procedure process in order to cancel any active KITAS prior to the employee changing status or leaving the country.
HR Checklist for the Employers
Companies should have immigration paperwork ready even prior to the planned start date for the employee. This involves verifying credentials of the corporate, checking OSS licenses, developing training and professional experience reports, and budgeting DPKK contribution, immigration costs etc.
A successful induction program can minimise delays and compliance issues. HR also needs to tie up immigration work, payroll and local employment requirements with the new business, trying to ensure that employment does not start until all the required documents have been signed and prepared.
FAQs
What is E23 Working KITAS?
The classification of foreigners who have a working visa (KITAS) in Indonesia is Work and Residence (E23).
What is an RPTKA?
RPTKA is a Foreign Worker Utilization Plan obtained through the Ministry of Manpower process, known as Rencana Penggunaan Tenaga Kerja Asing.
What will the DPKK contribution be?
According to the information provided, employers are required to pay the foreign worker US $100 monthly or US $1,200 year-round.
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