New Company Hiring Expatriates? Here’s What You Need to Prepare

oleh | Jun 29, 2026 | KITAS

New Company Hiring Expatriates

Many startups and growing businesses are increasingly considering the recruitment of foreign workers to accelerate knowledge transfer and support business expansion. Foreign professionals are often needed for positions that require specialized expertise, technical skills, or international experience.

However, hiring expatriates in Indonesia involves more than addressing business needs. Employers must comply with various legal and administrative requirements before foreign nationals can legally work in the country. Failure to follow the applicable procedures may expose companies to administrative risks, regulatory sanctions, and operational disruptions.

 

Required Documents for Employing Foreign Workers in Indonesia

 

One of the most critical aspects of hiring expatriates is ensuring that the company has obtained all documents and approvals required under Indonesian law. Pursuant to Article 81 paragraph (4) of Law No. 6 of 2023 concerning the Enactment of the Job Creation Government Regulation in Lieu of Law into Law (“Job Creation Law“), which amends provisions of Law No. 13 of 2003 on Manpower (“Manpower Law“), employers are required to obtain an approved Foreign Worker Utilization Plan (Rencana Penggunaan Tenaga Kerja Asing or “RPTKA”) from the Central Government before employing foreign workers.

The RPTKA serves as the primary document authorizing the employment of foreign workers in Indonesia. It contains information regarding the justification for employing foreign personnel, the position to be occupied, the duration and location of employment, as well as details of the designated Indonesian counterpart assigned to work alongside the foreign employee.

In addition to submitting an RPTKA application, employers must provide supporting documentation. Under Article 12 paragraph (3) of Government Regulation No. 34 of 2021 concerning the Employment of Foreign Workers (“GR 34/2021“), the required documents include at least:

  1. An application letter;
  2. Business Identification Number (Nomor Induk Berusaha or “NIB”) and/or business license of the employer;
  3. Deed of establishment and approval of incorporation and/or amendments issued by the competent authority;
  4. Evidence of mandatory manpower reporting;
  5. Draft employment agreement or other relevant agreement;
  6. Company organizational structure;
  7. Statement letter regarding the appointment of an Indonesian counterpart for the foreign worker;
  8. Statement letter confirming the implementation of education and training programs for Indonesian employees in accordance with the qualifications of the position occupied by the foreign worker; and
  9. Statement letter confirming the facilitation of Indonesian language education and training for the foreign worker.

Once the RPTKA is approved, the process continues with obtaining a Limited Stay Visa (Visa Tinggal Terbatas or “VITAS”), a Limited Stay Permit (Kartu Izin Tinggal Terbatas or “KITAS”), and fulfilling the obligation to pay the Foreign Worker Compensation Fund (Dana Kompensasi Penggunaan Tenaga Kerja Asing or “DKPTKA”) in accordance with applicable regulations.

In practice, these documents are interconnected and collectively form the legal basis for the presence and employment of expatriates in Indonesia.

Read also : Risiko KITAS Bermasalah bagi Perusahaan dan Karyawan

 

Practical Tips for Managing Foreign Worker Documentation

 

Many companies, particularly those hiring foreign workers for the first time, tend to view immigration and manpower documentation as a mere administrative formality. In reality, the process requires careful planning to avoid delays that may affect business operations and project timelines.

The first step is to verify whether the intended position may legally be occupied by a foreign worker under Indonesian regulations. Certain positions, particularly those related to human resource management, remain restricted and cannot be filled by foreign nationals.

The next step is to ensure that all corporate documents are complete and consistent from the outset. Discrepancies involving the company’s NIB, articles of association, or organizational structure are among the most common reasons for delays in obtaining RPTKA approval. Conducting an internal document review prior to submission is therefore highly advisable.

Employers must also appoint an Indonesian employee to act as a counterpart to the foreign worker. This requirement forms part of the government’s policy on technology transfer and knowledge transfer. In addition to appointing a counterpart, employers are required to provide relevant education and training programs for Indonesian employees associated with the position held by the foreign worker.

Companies should also adopt realistic timelines when planning the onboarding of expatriates. The processing of the RPTKA, VITAS, and KITAS involves coordination with multiple government authorities. Delays in preparation may result in foreign workers being unable to commence work when business activities or projects have already started.

For companies with limited experience in employing expatriates, legal assistance can help minimize administrative errors and ensure that every stage of the process complies with applicable laws and regulations.

Read also : Hak Cipta dan Hubungan Kerja: Menentukan Pemilik Sah atas Karya Karyawan

 

Administrative Compliance as a Business Investment

 

Employing expatriates can provide significant value to a business. Knowledge transfer, international experience, and enhanced workforce capabilities are among the key benefits sought by employers.

However, these benefits can only be fully realized when all legal and regulatory requirements are addressed from the outset. Compliance with foreign worker regulations should not be viewed merely as an administrative obligation. Rather, it forms an integral part of a company’s risk management strategy and good corporate governance framework.***

 

Planning to Hire Foreign Workers in Indonesia?

Ensure that all required documentation is prepared in advance to facilitate a smooth and compliant hiring process.

For further assistance regarding expatriate employment, immigration permits, and foreign worker compliance in Indonesia, contact SIP-R Consultant via WhatsApp.

 

Regulations:

  • Law No. 6 of 2023 concerning the Enactment of the Job Creation Government Regulation in Lieu of Law into Law (“Job Creation Law“).
  • Law No. 13 of 2003 on Manpower (“Manpower Law“).
  • Government Regulation No. 34 of 2021 concerning the Employment of Foreign Workers (“GR 34/2021“).

 

References:

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