Once the RPTKA has been granted by the government, then the company that hires the expat needs to apply for a Work Permit – the IMTA. This is the only legal authorization given to a company to employ a foreigner. If expats working in Indonesia are not holding an IMTA, they are not working legally in Indonesia. After ensuring the necessary approvals are in place, a TA-01 is issued, and then a work permit, Izin Kerja Tenaga Asing (IKTA) is issued by the Manpower Ministry (Kementerian Tenaga Kerja or Kemenakertrans) after your arrival and the issuance of the ITAS card and have paid your annual DPKK.
If a company wants to employ foreigners, the company must submit the RPTKA (above) to the Manpower Department if the employing company is a domestic company or to the BKPM (Investment Coordinating Board if the company is a foreign investment company. In foreign investment/PMA companies, work permits for senior positions (such as Director held by foreigners are for three years and can be renewed just before expiration. (Note: Director’s positions held by foreigners are only applicable for foreign investment/PMA companies). Other position slots in the RPTKA are only for one year and can be renewed annually, usually up to a fixed number of years.
Small Indonesian companies incorporated as a CV are not allowed to hire expats. So-called “medium-sized companies” are only allowed to hire two expats. In larger companies there is no limitation to the number of expats hired, as long as the ratio of 1 expat : 1 local expert as a counterpart is followed.
- The IMTA is issued through the Department of Manpower and must be approved through several ministries.
- It is issued by the government to/through a sponsoring company for an individual.
- Work Permits are only issued to companies that require a specific position to be reserved for an expatriate when there is currently not an Indonesian qualified to fill that same position.
- IMTA may be issued for short-term periods and up to a maximum of a 12-month period.
The following documents must be presented by the employing company in order to apply for the IMTA:
- Proof of an education relevant to the position the expat will hold
- A certificate of competence or work experience of at least five years in a position relevant to the position
- A statement from the expata agreeing to transfer his/her knowledge to the Indonesian counterpart
- A copy of the employment agreement of the Indonesian colleague
- A Taxpayer Identification card (NPWP), if the expat is working longer than six months
- An insurance policy issued by an insurance company incorporated in Indonesia
- A National Social Security policy, if working in Indonesia longer than six months
- Receipt for the DKP-TKA payment (US$1,200 a year)
- The RPTKA approval (see above)
- A copy of the expat’s passport, showing he/she is 25 years or older and not older than 55 (for oil and gas) and 60 (for teachers)
- Two colour photographs 4×6 cm size
- A letter of recommendation from a technical Ministry (if applicable)
- Directors and the commissioners don’t need to fulfil the first four requirements listed above
Source : http://www.expat.or.id/info/docs.html#IMTA