Introduction: Hiring Foreign Workers Through a Local PT in Indonesia – Visa Agency

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Introduction: Hiring Foreign Workers Through a Local PT in Indonesia

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Introduction: Hiring Foreign Workers Through a Local PT in Indonesia

Many Indonesian companies — including local PTs in Kalimantan, Java, Bali, and Sumatra — need to legally hire foreign workers (expatriates) for specialist positions. However, the process of obtaining a Working KITAS is often confusing: whether a sponsor is required, what documents are needed, and how much the process costs.

This article is based on a real conversation with a company in Kalimantan that already has a local PT and wants to employ a foreign worker. Below is a complete, practical guide for companies wishing to sponsor a Working KITAS.

Do You Need a Sponsor for a Working KITAS?

Yes. A Working KITAS always requires a sponsor company in Indonesia.

A foreigner cannot obtain a Working KITAS without a legal employer. The sponsor must be:

  • a Local PT, or
  • a PT PMA (if the foreigner will be a shareholder)

In this case, since the WNA (foreigner) will only work as an employee and not hold shares, a Local PT is fully sufficient.

Requirements for a Local PT to Employ a Foreigner

A company must meet certain criteria before it can legally sponsor Working KITAS:

1. Legal business entity

✔ Must be a PT Local
✔ PT PMA is only required if the foreigner becomes a shareholder

2. Complete company documents

The company must have:

  • Deed of establishment & Ministry approval
  • Company NPWP
  • Active NIB / OSS
  • Valid business activities (KBLI codes)
  • Real office address

3. Minimum Indonesian employees

Indonesian labor rules require a ratio of 1 expatriate : 10 Indonesian employees.

These employees may include:

  • admin
  • office staff
  • cleaners
  • drivers
  • gardeners
  • nanny / helper

Each must have a simple employment agreement.

4. Company obligations

  • Provide an employment contract for the foreigner
  • Pay DPKK (USD 100 per month of permit duration)
  • Ensure compliance with labor and immigration systems
  • BPJS is not mandatory if Indonesian staff salaries are below UMR

Official Working KITAS Process for Local PTs

The full legal process consists of several steps:

1) Registering the company in the Ministry of Manpower system

Flado assists with creating and activating the official Kemenaker account.

2) Submitting RPTKA and Work Permit (Notifikasi)

The Ministry reviews:

  • the foreigner’s job title
  • skill level
  • educational background
  • work experience
  • company structure

3) Determining the work permit duration

Kemenaker may grant:

  • 6 months – for project-based or freelance roles
  • 12 months – for full-time positions
  • 24 months – for senior or technical specialists

4) Paying DPKK (Compensation Fund)

DPKK is mandatory for every foreign worker:

  • 6 months → 600 USD
  • 12 months → 1,200 USD
  • 24 months → 2,400 USD

5) Applying for the Working Visa and KITAS

Once the work permit is approved, data flows to Immigration automatically.
Flado then processes the Working Visa and KITAS until completion.

Documents Required From the Company

Company documents

  • Deed & Ministry approval
  • NPWP
  • NIB / OSS
  • Director’s and commissioner’s KTP
  • Company organizational structure
  • List of minimum 10 Indonesian employees (KTP + job title)

Foreigner’s documents

  • Passport
  • CV
  • Educational certificate (any language accepted)
  • Photo
  • Employment contract

Translation to English/Indonesian can be arranged if needed.

Total Cost of Working KITAS (Per Person)

Below are all mandatory items included in the legal process:

6-Month Working KITAS

  • RPTKA/IMTA/DPKK: 4,000,000 IDR
  • DPKK: 9,291,000 IDR
  • KITAS fee: 9,350,000 IDR
    Total: 22,641,000 IDR

12-Month Working KITAS

  • RPTKA/IMTA/DPKK: 4,000,000 IDR
  • DPKK: 18,582,000 IDR
  • KITAS fee: 11,250,000 IDR
    Total: 33,832,000 IDR

24-Month Working KITAS

  • RPTKA/IMTA/DPKK: 4,000,000 IDR
  • DPKK: 37,164,000 IDR
  • KITAS fee: 14,450,000 IDR
    Total: 55,614,000 IDR

These components are mandatory and cannot be separated.

Real Case Example: Local PT in Kalimantan Hiring a Foreign Worker

In this real scenario:

  • The PT Local is already established
  • The company wants to hire 1 foreign worker
  • The WNA will not be a shareholder
  • The company already has Indonesian employees
  • Documents are ready for checking

Once all documents are complete, the work permit process can begin immediately.

Conclusion

Local PTs can legally hire foreign workers as long as:

  • The company meets legal and structural requirements
  • Indonesian employee ratio is fulfilled
  • A valid position and contract are provided
  • The company pays DPKK
  • All stages of RPTKA → Work Permit → Working KITAS are completed

Flado handles the entire procedure from start to finish to ensure compliance and speed.

Need Help Processing a Working KITAS?

WhatsApp / Telegram: +6281239134485
Email: visa@flado.id
Website: https://flado.id/working

We assist companies across Indonesia with official Working KITAS, work permits, and sponsorship registration.