Employing Foreign Workers in Indonesia

Under Ministry of Manpower (MOM) Regulation No. 10/2018, dated 11 July 2018, regarding procedures for the utilization of foreign manpower, employers intending to employ expatriates must have a foreign worker utilization plan (RPTKA). The RPTKA is a plan to employ expatriate manpower in certain positions for a certain period that is approved by the MOM. An RPTKA approved by the MOM serves as a work permit for expatriates.

However, an approved RPTKA does not automatically grant employers the right to employ expatriates. Previously, employers were required to obtain a RPTKA and a notification approved and issued by the Minister of Manpower before employing foreign workers.

Government Regulation No. 34 of 2021 regarding the Utilization of Foreign Workers (GR 34/2021) removes the notification requirement and adds one new step – the RPTKA appropriateness assessment (RPTKA assessment). During the RPTKA assessment, the MOM will determine within two business days whether the submitted information and documents are correct and complete.

Employing expatriates without first fulfilling the above requirements would subject the company to administrative sanctions in the form of postponement of service, temporary suspension of the work permit application, revocation of notification or other sanctions under the prevailing laws and regulations.

Are Spouses of Authorized Workers entitled to Work in Indonesia?

It is a general principle that every foreign worker must have their own work permit organized by their employer. This general principle applies regardless of marital status. Therefore, if the spouse is also an expatriate, they need their own work permit to be eligible to work in Indonesia.

Excerpted from Lexology Panoramic: Labor & Employment 2024, published by Law Business Research.

Find the Indonesia chapter of Lexology Panoramic: Labor & Employment 2024 here.

Further reading:

Quick Guide to Employment Contracts in Indonesia

Indonesia Employment Law – Background Information on Applicants

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