PT PMA companies can legally hire foreign employees in Indonesia, but only through a regulated, compliance-heavy process that prioritizes Indonesian workers. At the center of this process are the RPTKA approval and the work visa chain, which together govern who you can hire, for what role, for how long, and under what conditions.
At InvestinAsia, we guide foreign investors through this framework to ensure your talent strategy aligns with Indonesian labor and immigration law from day one.
Core Legal Principles Governing Foreign Employment
Indonesia’s Investment Law No. 25/2007 establishes a clear policy direction. Foreign investment companies must prioritize Indonesian citizens for employment while retaining the right to use foreign experts when local expertise is unavailable. This principle shapes every approval decision made by the Ministry of Manpower.
Foreign employees are generally restricted to expert, managerial, or strategic roles. Positions reserved for Indonesians are strictly protected. Just as important, foreign employment is intended to be temporary and developmental, not permanent replacement of local talent.
Also read: Indonesia Labour Law & Employment Regulations: Complete Guide
Preconditions Before Hiring Foreign Employees
Before a PT PMA can even apply to hire a foreign worker, the company must be properly established and licensed. This includes a valid deed of incorporation, Ministry of Law and Human Rights approval, NIB issuance through OSS, and a clear organizational structure.
The company must also demonstrate that the foreign role is genuinely needed. This requires a solid justification of skills, scope of work, and duration, supported by a training and knowledge-transfer plan for Indonesian employees. In practice, the stronger this preparation, the smoother the approval process.
This often raises a strategic question for investors: whether Indonesian shareholders or employees are mandatory. We address this in detail in our related analysis, “Does a PT PMA Company Need Indonesian Shareholders and Employees?”, which explains how ownership and staffing requirements interact in practice.
Also read: Can a Representative Office Hire Employees in Indonesia?
RPTKA: The Foundation of Foreign Employment
The RPTKA is the central approval that allows a PT PMA to employ foreign workers. It defines the permitted job titles, work locations, number of expatriates, and employment period.
An RPTKA submission includes company details, job descriptions aligned with allowed expatriate positions, foreign worker qualifications, and a structured training plan for Indonesian staff. The Ministry of Manpower then conducts a feasibility assessment to ensure the proposed employment supports national labor policy.
Once approved, the Pengesahan RPTKA becomes the legal basis for all subsequent work permit and visa processes.
Notification and DKP-TKA Obligations
After RPTKA approval, each foreign employee must obtain an individual Notification through the TKA-Online system. This Notification has replaced the old IMTA and now serves as the official work authorization.
At this stage, the employer must also pay the DKP-TKA, a mandatory skill development fund of USD 100 per foreign worker per month. This payment is typically made in advance for the full approved employment period and is closely monitored for compliance.
Also read: What Is BPJS in Indonesia: Legal Framework, Benefits, and Compliance
Visa and KITAS Process for Foreign Employees
With RPTKA and Notification in place, the foreign employee proceeds through immigration formalities. This starts with a limited-stay work visa and continues with conversion into an ITAS, commonly referred to as a KITAS, upon arrival in Indonesia.
The duration of the KITAS aligns with the approved RPTKA period and can usually be extended as long as the manpower approvals remain valid. Accurate coordination between manpower and immigration timelines is critical to avoid deployment delays.
Also read: 6 Types of KITAS in Indonesia and It’s Requirements
Ongoing Employer Responsibilities
Hiring a foreign employee is not a one-time approval. PT PMA companies must maintain valid RPTKA and Notifications, keep DKP-TKA payments current, and actively implement the knowledge-transfer plan.
Any changes to position, work location, or employment status must be reported through TKA-Online. Employers must also comply with general labor, tax, and payroll regulations, as foreign workers are fully subject to Indonesian employment law.
This is where many foreign investors underestimate complexity, particularly when managing expatriate payroll, tax withholding, and reporting alongside Indonesian staff.
Strategic Restrictions and Planning Considerations
Not all job titles are open to foreign workers. PMA companies must carefully design their manpower structure to align foreign expertise with permitted roles and assign operational functions to Indonesian employees.
Foreign roles are often paired with Indonesian understudies, reinforcing the expectation that knowledge transfer leads to localization over time. For project-based industries, special RPTKA structures can be used, but justification and planning remain essential.
Step-by-Step Checklist for PMA Companies
From our advisory experience, a compliant hiring flow typically follows these steps: confirm role eligibility, finalize company licensing, prepare the RPTKA dossier, secure RPTKA approval, obtain Notifications and pay DKP-TKA, process work visas and KITAS, and implement ongoing compliance and training.
How InvestinAsia Supports Your Foreign Hiring Strategy
As foreign investors scale in Indonesia, manpower compliance quickly becomes intertwined with company structure, licensing, and payroll execution. Many of our clients first learn about us through our perspective on why foreign investors choose InvestinAsia for PMA registration, which reflects how we integrate legal, immigration, and operational planning.
At InvestinAsia, we support you not only with PT PMA company registration, but also with structuring compliant foreign manpower plans and managing Indonesian payroll operations. Our role is to ensure your business can deploy foreign expertise without regulatory friction, while building a sustainable local team.
If you are planning to hire foreign professionals in Indonesia or are unsure whether your current structure supports expatriate employment, our team is ready to guide you through each step with clarity and precision.
Contact our experts now for FREE consultation!
Frequently Asked Questions
Can a PT PMA hire foreign employees in Indonesia?
Yes. A PT PMA can hire foreign employees, provided it prioritizes Indonesian workers and secures RPTKA approval and work authorization for each foreign role.
What is the RPTKA and why is it important?
The RPTKA is the Foreign Worker Utilization Plan approved by the Ministry of Manpower. It defines permitted positions, duration, and knowledge-transfer obligations and is mandatory before hiring foreign employees.
Are foreign employees allowed in all positions?
No. Foreign workers are generally limited to expert, managerial, or strategic roles. Certain job titles are reserved exclusively for Indonesian citizens.
How long can a foreign employee work in Indonesia?
The employment period depends on the approved RPTKA, commonly six to twelve months, with possible extensions subject to compliance and approval.
Is the DKP-TKA mandatory for all foreign workers?
Yes. Employers must pay USD 100 per month per foreign employee as part of the Notification process.
