Expatriate Employees

Indonesian companies, whether national companies of foreign investment companies are permitted to employ expatriate employees as a Director, Commissioner or certain other position in the company that open for expatriate employee. A company who would like to employ expatriate employee must provide necessary education and training programs for Indonesian employees who are expected to replace the expatriates.

Prior to employing expatriate employees, a company must first submit an application on Foreign Manpower Utilization Plan or RPTKA and obtain approval thereof. The RPTKA determines the number of expatriates that will work for the company, their term of employment and the functions in which they are to be employed. It serves as a basis for the entry of expatriates and the issuances of expatriates working permits. The RPTKA may be granted for a maximum period of 5 (five) years and may be extended for another 5 (five) years at the maximum.

The application for RPTKA must include documents of the company, among others:
1. RPTKA form which has been filled in;
2. the business license of the company;
3. copies of the deed of establishment and legalization as a legal entity;
4. a copy of the Certificate of Domicile;
5. a copy of the organizational chart of the company;
6. a copy of the appointment letter concerning the appointment of Indonesian employees to be the assistant(s) of the expatriate;
7. a copy of the company’s Mandatory Manpower Report.

After the RPTKA application has been approved, the expatriate who will be employed by the Company must subsequently obtain a Visa for Limited Stay or VITAS issued by the representative of the Republic of Indonesia located outside of Indonesia (e.g., Indonesian embassy or consulate).

To obtain VITAS as mentioned above, the company must first submit an Application for Recommendation to Employ Expatriates to the Manpower Department. The recommendation will be subsequently issued by the Manpower Department and delivered to the Director General of Immigration which will further notify the representative office of the Republic of Indonesia to issue VITAS for the expatriate concerned.

On the basis of VITAS, the company can apply for the issuance of Permit of Limited Stay or ITAS for the expatriate to be employed. The application of ITAS must be submitted to the local immigration office where the expatriate has its domicile.

After completing the procedures mentioned above, the company must subsequently submit application to obtain Foreign Manpower Working Permit of IKTA for the expatriate. The IKTA will be granted for a period mentioned in the RPTKA and may be extended.

Once the IKTA is granted, the company must submit semi-annual reports on the utilization of expatriates and the implementation of RPTKA to the Minister of Manpower.

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