Work Permit (IMTA) Requirements for Foreigners in Indonesia: A Complete Legal Guide for Employers and Expats

Table of Contents

The Main Legal Question

When does a foreigner legally need a Work Permit (IMTA) to work in Indonesia, and what are the exact legal requirements?

The short and direct answer is: any foreigner who performs work or productive activities in Indonesia—regardless of job title, payment source, or length of stay—must have an approved work authorization under Indonesian manpower and immigration law. There are very limited exceptions, and violating this rule carries severe legal consequences.

Legal Explanation

Understanding the IMTA Concept (and Why the Term Still Matters)

Although the term IMTA (Izin Mempekerjakan Tenaga Kerja Asing) is no longer issued as a standalone document, it remains widely used in practice to describe government approval for employing foreign workers.

Under current law, the IMTA function has been integrated into the RPTKA approval system, combined with immigration stay permits. However, the legal obligation to obtain government authorization before a foreigner works in Indonesia still exists—and enforcement is strict.

In practical terms:

• No foreigner may legally work in Indonesia without prior government approval
• The employer, not the foreign worker, bears primary legal responsibility
• “Work” is defined broadly and aggressively by Indonesian authorities

What Counts as “Work” Under Indonesian Law?

Indonesian law does not limit “work” to paid employment.

Activities considered work include:

• Managing or supervising employees
• Performing technical or professional services
• Making operational decisions
• Executing company strategies
• Providing on-site expertise
• Representing an Indonesian company in daily operations

Even if:

• The foreigner is unpaid
• Salary is paid offshore
• The role is “temporary”
• The title is “consultant,” “advisor,” or “volunteer”

If the activity contributes to business operations, it is work.

Who Must Obtain Work Authorization?

Work authorization is required for:

• Foreign employees
• Foreign directors and commissioners (with limited exemptions)
• Technical specialists
• Project-based workers
• Foreign shareholders involved in operations
• Seconded staff from overseas entities

Nationality, visa type, or seniority does not remove the requirement.

Legal Basis

Below are the core Indonesian laws governing work permits (IMTA) and foreign employment, with practical explanations.

1. Law No. 13 of 2003 on Manpower, as amended by Law No. 11 of 2020 on Job Creation

Relevant Articles:

• Article 42
• Article 43
• Article 44
• Article 185

Practical Meaning:

• Article 42(1): Employers must obtain written approval from the Central Government before employing foreign workers.
• Article 42(4): Foreign workers may only work in specific positions and time periods.
• Article 43: Employers must prepare a Foreign Manpower Utilization Plan (RPTKA).
• Article 44: Employers must appoint Indonesian counterparts for skill transfer.
• Article 185: Violations may result in criminal sanctions.

This law establishes the absolute legal foundation for IMTA requirements.

2. Government Regulation No. 34 of 2021 on the Utilization of Foreign Workers

Relevant Articles:

• Article 5
• Article 6
• Article 9
• Article 12
• Article 17

Practical Meaning:

This regulation explains:

• Which employers may hire foreigners
• Which positions are allowed or prohibited
• RPTKA approval procedures
• Duration of foreign employment

It also confirms that RPTKA approval replaces the traditional IMTA document, without removing the legal obligation.

3. Minister of Manpower Regulation No. 8 of 2021 on Procedures for Employing Foreign Workers

Relevant Articles:

• Article 3
• Article 7
• Article 10
• Article 14

Practical Meaning:

This regulation governs:

• Online RPTKA submission
• Required documents
• Position eligibility
• Exemptions for certain roles

It is the primary operational rulebook used by the Ministry of Manpower.

4. Law No. 6 of 2011 on Immigration

Relevant Articles:

• Article 1 point 20
• Article 122(a)

Practical Meaning:

• • Article 122(a) criminalizes foreigners who misuse stay permits to work without authorization.
• • Immigration violations may apply even if manpower approval exists but immigration status is incorrect.

Work permits and visas must always align.

Who Is Exempt from IMTA Requirements?

Limited Exemptions (Strictly Interpreted)

Under Article 10 of Minister of Manpower Regulation No. 8 of 2021, exemptions may apply to:

• Shareholders serving as non-operational commissioners
• Diplomatic and consular staff
• Emergency technical work (with reporting obligations)

Important:
Exemptions apply only if the foreigner does not engage in daily operations. Immigration audits often challenge improper exemption claims.

RPTKA and IMTA: Step-by-Step Overview

1. RPTKA Approval

The employer must submit:

• Company licenses
• Position justification
• Foreign worker profile
• Indonesian counterpart details

Approval defines:

• Job title
• Work location
• Employment duration

2. Work Visa (VITAS)

Once RPTKA is approved, the foreign worker applies for a Limited Stay Visa (VITAS) for work purposes.

3. Limited Stay Permit (KITAS)

After entry, the VITAS converts into a KITAS, allowing lawful residence and work.

4. Ongoing Compliance

Employers must:

• Report changes
• Renew approvals
• Maintain manpower data
• Facilitate skill transfer

Risks and Legal Consequences

1. Sanctions Against Employers

Under Article 185 of Law No. 13 of 2003, employers may face:

• Criminal penalties
• Substantial fines
• Business license suspension

2. Sanctions Against Foreign Workers

Under Article 122(a) of Law No. 6 of 2011, foreign workers may face:

• Up to 5 years imprisonment
• Fine up to IDR 500 million
• Deportation and blacklisting

3. Immigration Audits and Raids

Immigration and manpower authorities frequently conduct:

• On-site inspections
• Random compliance checks
• Joint task force audits

Case Examples

Case 1: Foreign Director Without RPTKA
A foreign director actively managed daily operations without RPTKA approval. Despite holding a KITAS, the company was fined and the director deported.

Case 2: Consultant Misclassification
A foreign consultant entered on a business visa but delivered technical training. Authorities classified this as work, triggering immigration sanctions.

Case 3: Proper Compliance Structure
A manufacturing company secured RPTKA, assigned Indonesian counterparts, and maintained reporting compliance—successfully passing a surprise inspection.

What Can Be Done

1. Conduct a Work Activity Assessment
Identify whether activities qualify as work under Indonesian law—not job titles.

2. Secure RPTKA Approval Before Entry
Never allow foreigners to “start first and legalize later.”

3. Align Immigration and Manpower Status
Work permits and stay permits must always match.

4. Use Correct Position Classification
Avoid generic titles; authorities assess substance over form.

5. Engage Professional Legal Support
Foreign manpower compliance is complex and enforcement-driven.

Conclusion

Work Permit (IMTA) requirements for foreigners in Indonesia are strict, detailed, and actively enforced. Indonesian law focuses on actual activities, not intent or compensation.

Employers and foreign workers who misunderstand or underestimate these requirements face serious legal, financial, and immigration consequences. Proper structuring, early planning, and legal compliance are not optional—they are essential.

If you are employing foreigners, relocating executives, or planning project-based assignments in Indonesia, professional legal guidance is critical.

For personalized advice, consult a qualified Indonesian business and manpower law advocate using the contact details provided in this website’s navigation.

Frequently Asked Questions (FAQ)

Is IMTA still required in Indonesia?
The standalone IMTA document is integrated into the RPTKA system, but the legal requirement for work authorization remains mandatory.

Can foreigners work on a business visa?
No. Business visas do not permit work under Law No. 6 of 2011 on Immigration.

Do directors need work permits?
Operational directors generally require RPTKA approval unless a narrow exemption applies.

Is unpaid work allowed without IMTA?
No. Payment source is irrelevant under Indonesian law.

How long does RPTKA approval take?
Typically several weeks, depending on position and documentation.

Can immigration inspect my workplace?
Yes. Inspections are authorized under Indonesian immigration and manpower regulations.

Who is legally responsible for violations?
Primarily the employer, but foreign workers also face sanctions.

Can violations affect future visa applications?
Yes. Violations often result in blacklisting.

Should I consult a lawyer before hiring foreigners?
Strongly recommended to avoid costly mistakes.

Need help navigating IMTA or RPTKA compliance?
If you are facing foreign manpower issues, work permit risks, or immigration uncertainty in Indonesia, consult an experienced Indonesian advocate via the contact details provided in this website’s navigation.