Do Foreigners Need a Work Permit to Work in Indonesia? RPTKA, KITAS, and the Investor Route (2026)

By the Nelwan & Co legal team · Last reviewed July 2026

Short answer: Yes. Almost every foreigner working in Indonesia needs their employer to hold an approved RPTKA (foreign-worker plan) plus a work-stay permit — the work KITAS, visa index E23. Only a foreign investor-director who personally holds at least IDR 10 billion in shares can use an investor KITAS (E28A), which needs no RPTKA. Working on a tourist or business visa is illegal and now risks up to a 10-year re-entry ban.

Every week a founder tells us the same thing: "I own the company and I'm the director — surely I can just fly in and run it." In Indonesia, ownership and the right to work are two different things, governed by two different ministries. Get the distinction wrong and you are not risking a fine on paper — you are risking detention, deportation, and a re-entry ban that can lock you out of your own business. This is exactly where incorporation and visa agents tend to give a confident answer that is only half true. Here is the full picture, current as of 2026.

What counts as "work," and who needs authorization?

Indonesian law treats employing any foreign national (Tenaga Kerja Asing, TKA) as an exception that must be justified and licensed. Under Article 42 of Law No. 13 of 2003 on Manpower — as amended by Law No. 6 of 2023 on Job Creation (the "Omnibus Law") — every employer that engages a foreign worker must first obtain government approval of a foreign-worker utilization plan (RPTKA). The implementing rules sit in Government Regulation No. 34 of 2021 (PP 34/2021) on the Use of Foreign Workers, with procedures in Minister of Manpower Regulation No. 8 of 2021.

"Work" is read broadly. Directing operations, closing deals, managing staff, or delivering services for the company all count — whether or not you draw an Indonesian salary. A visit visa or tourist visa authorizes none of this. (If you are still deciding what to set up, start with our guide to PT PMA vs local PT vs representative office — the entity you choose becomes the sponsor for every permit below.)

The two-track system: Manpower vs Immigration

Getting a foreigner working legally means clearing two separate approvals from two authorities:

1. Work authorization (Ministry of Manpower): the RPTKA, plus payment of the foreign-worker compensation levy (DKPTKA). 2. Stay authorization (immigration): the visa (VITAS / e-Visa) that converts on arrival into a limited stay permit — the Izin Tinggal Terbatas (ITAS), universally called a KITAS.

Agents often collapse these into "getting your KITAS." They are not the same, they run in sequence, and the work permit gates the visa. Since late 2024, immigration sits under the new Ministry of Immigration and Corrections, and the workflow is now fully digital (e-Visa and e-KITAS).

Track 1 — The RPTKA, and the DKPTKA cost agents understate

The RPTKA is your company's permission to employ a specific foreigner, in a specific role, for a specific period. As of 2025 the approval runs in two steps: a feasibility assessment (Hasil Penilaian Kelayakan RPTKA / HPK RPTKA), then the endorsement (Pengesahan RPTKA). This replaced the older "Notifikasi" step.

To qualify, the foreign worker must (PP 34/2021) hold education or a certificate matching the role, have at least five years of relevant experience, and be paired with a named Indonesian counterpart (pendamping) for knowledge transfer. Directors and commissioners are treated somewhat differently, but a justified plan is always required.

The cost most agents gloss over is the DKPTKA (Dana Kompensasi Penggunaan TKA) — a compensation levy of USD 100 per foreign worker, per position, per month, paid upfront for the entire approved period. A two-year approval is USD 2,400 per foreigner, due before immigration will process the visa. It is not a tax you settle later; it is a hard gate.

Track 2 — Work KITAS (E23) vs Investor KITAS (E28A)

Once the RPTKA is endorsed and the DKPTKA paid, the company sponsors the visa. The two routes most founders face are the work KITAS (E23) and the investor KITAS (E28A) — and they are not interchangeable.

Read the shareholding line carefully: the IDR 10 billion for the two-year E28A must be shares held personally, in your own name, recorded in the deed and verifiable against the OSS record. It cannot sit behind a nominee or a holding company — one more reason nominee structures are a trap rather than a shortcut.

The current visa index framework (E23–E35) comes from Minister of Law and Human Rights Regulation No. 22 of 2023 on Visas and Stay Permits, as amended by Regulation No. 11 of 2024 and revised by Regulation No. 3 of 2025, and refined by the immigration ministry's 2025 visa-classification decree.

Can a foreign director skip the work permit? The investor-KITAS trap

This is the single most misunderstood point — and the one agents get wrong most often.

Yes, an investor KITAS (E28A) needs no RPTKA and no DKPTKA. But it is a residence permit tied to your capacity as an investor and board member — not a general licence to perform hands-on work. If you are actively running the business day to day — managing teams, delivering billable services, effectively acting as staff — a strict reading is that you should hold a work KITAS (E23), not merely an investor one. Where exactly the line falls between permissible investor oversight and "work" that needs an E23 is not sharply defined in the regulations and is applied by officials case by case. Treat the investor KITAS as a way to reside and govern — not as a costless way to run operations.

Which positions can a foreigner not hold?

Some roles are reserved for Indonesians. Minister of Manpower Decree No. 349 of 2019 lists positions closed to foreign workers — most notably human-resources roles (e.g., Personnel/HR Director, Industrial Relations Manager). If your org chart puts a foreigner in HR, the RPTKA will not clear. (Because the Omnibus Law reshuffled the underlying Manpower Law, the continuing legal force of this 2019 list is debated; in practice the Ministry still applies it, so confirm current treatment before filing.)

What happens if you work on the wrong visa?

Enforcement got harder, not softer. The third amendment to the Immigration Law — Law No. 63 of 2024, in force 17 October 2024 — expanded supervision and raised the ceiling on entry bans to up to 10 years. Working without proper authorization exposes the foreigner to administrative action (cancellation of the stay permit, detention, deportation, and entry/exit bans) and to criminal liability: under Article 122 of Law No. 6 of 2011 on Immigration, misusing a stay permit — including working on one that does not allow it — carries up to 5 years' imprisonment and a fine of up to IDR 500 million, and those who arrange or enable the misuse can be exposed too. For a founder, the real cost is not the fine — it is being barred from the country where your business lives.

What this means for you

• Build the work permit into your setup timeline and cash — RPTKA endorsement, DKPTKA (USD 1,200/year per foreigner), then the visa — not as an afterthought.
• Decide early whether you are an investor (E28A, if you can put ≥ IDR 10 billion of shares in your own name) or a working director/employee (E23). Reversing the wrong choice is expensive.
• Never let a foreign hire — or yourself — start work on a visit or tourist visa "while the paperwork catches up." There is no grace period.
• Keep your KBLI/role and the RPTKA aligned; officials cross-check the role against the company's licensed business activity.
• Plan the exit too: when an expat role ends, severance follows the same Omnibus Law framework — see our guide on terminating employees in Indonesia.

Common mistakes we see foreign founders make

• Assuming ownership equals the right to work. Being the shareholder or director does not, by itself, authorize you to work. The permits are separate from the shares.
• Running the company on an investor KITAS while doing full operational work. Popular advice, real risk — the E28A is a residence permit, not a blanket work licence.
• Working on a business/visit visa "temporarily." Day one on the wrong visa is already a violation.
• Under-budgeting the DKPTKA. USD 100/month/worker, prepaid, surprises founders who were quoted only the agent's fee.
• Putting a foreigner in an HR role. Closed under Decree 349/2019; the RPTKA will be refused.
• Ignoring the knowledge-transfer counterpart. The Indonesian pendamping is a compliance obligation, not a formality — its absence can jeopardise renewals.

Key takeaways

• Employing any foreigner requires an approved RPTKA — Art. 42, Law 13/2003 (as amended by Law 6/2023); PP 34/2021.
• DKPTKA levy: USD 100 per worker/position/month, prepaid for the RPTKA period.
• Work KITAS (E23) needs an RPTKA + DKPTKA; investor KITAS (E28A) does not, but requires ≥ IDR 10 billion personal shares and is a residence — not a general work — permit.
• HR/personnel positions are closed to foreigners — Decree 349/2019.
• Working on the wrong visa risks deportation, up to a 10-year entry ban (Law 63/2024), and criminal penalties up to 5 years / IDR 500 million — Art. 122, Law 6/2011.

Frequently asked questions

Do I need a work permit if I own and direct my own PT PMA? Usually yes. Owning shares and sitting on the board does not authorize you to work. If you hold at least IDR 10 billion of shares personally, you may use an investor KITAS (E28A) without an RPTKA; otherwise you need a work KITAS (E23) sponsored by the company, which requires an approved RPTKA and the DKPTKA levy.

What is the difference between a work KITAS and an investor KITAS? A work KITAS (index E23) is for sponsored employees and working directors and requires an approved RPTKA plus the USD 100/month DKPTKA. An investor KITAS (E28A) is for a foreign shareholder-director holding at least IDR 10 billion in personal shares; it needs no RPTKA and is exempt from DKPTKA, but it is a residence permit — not a blanket licence to do operational work.

How much does the foreign-worker levy (DKPTKA) cost? USD 100 per foreign worker, per position, per month, paid upfront for the full period approved in the RPTKA. A two-year approval is USD 2,400 per worker, payable before immigration processes the visa.

Can a foreigner work in Indonesia on a business or tourist visa? No. Visit and tourist visas do not authorize work. Working on them breaches the Immigration Law (Law No. 6 of 2011, as amended by Law No. 63 of 2024) and can lead to deportation, an entry ban of up to 10 years, and criminal penalties under Article 122.

Are there jobs a foreigner is not allowed to hold? Yes. Minister of Manpower Decree No. 349 of 2019 lists positions closed to foreign workers, most notably human-resources roles such as Personnel/HR Director and Industrial Relations Manager. Placing a foreigner in these roles will cause the RPTKA to be rejected.

This article is general information current as of July 2026, not legal advice. Indonesian manpower and immigration regulations change frequently and apply differently to each situation. Confirm your specific position with a licensed advisor before acting — we're happy to help.