Indonesia Personal Income Tax

Indonesian-resident taxpayers are subject to tax on worldwide income. Nonresidents are subject to tax on Indonesian-source income only. Diplomats and representatives of certain international organizations are excluded from Indonesian tax if the countries they represent provide reciprocal exemptions.

Individuals are considered resident for tax purposes if they are present in Indo nesia for more than 183 days within a 12-month period or if, within the calendar tax year, they reside in Indonesia with the intent to stay.

Under a tax regulation, which was issued on 12 January 2009, an Indonesian national who works overseas for more than 183 days within any 12-month period is considered a nonresident.

Income subject to tax. The taxation of various types of income is described below.

Employment income. Taxable income of an employee includes wages, salary, commissions, bonuses, pensions, directors’ fees and other compensation for work performed. Compensation in kind for work or services is not taxable income for the employee and is not a deductible expense for the employer. However, this treatment does not apply to employees of the following:

  • Oil and gas companies under contracts entered into under pre-1984 law
  • Representative offices, which are not subject to Indonesian cor­po rate income tax
  • Various international organizations and embas sies
  • Employers who are taxed based on a “deemed profit” basis
  • Employers who are subject to final tax

Although fringe benefits provided to employees, including employer-provided housing and automobiles, are not included in an employee’s taxable income, they are allowable deductions for the employer if the employee works in a remote area. Approval for remote area status must be obtained by the employer. Benefits received in the form of cash allowances are taxable.

Termination pay and lump-sum pension payments are subject to final withholding tax at the rates set forth in Rates.

An Indonesian national who works overseas for more than 183 days within a 12-month period is not subject to tax on his or her employment income that is earned overseas and that is subject to tax overseas.

Self-employment and business income. Members of partnerships, firms and associations, as well as other individuals, may be sub­ject to tax on self-employment or business income.

Taxable income includes trading profits, profits from the sale of property connected with a business, annuities and waivers of debts (except waivers of debts for a small entrepreneur of up to IDR5 million).

Self-employment and business income is combined with other income and taxed at the rates set forth in Rates.

Directors’ fees. Directors’ fees are included in taxable employ­ment income.

Investment income. Dividends paid to individuals, rents, royalties and certain interest are subject to withholding tax at various rates. These types of investment income generally are combined with other income and taxed at the rates set forth in Rates. However, the 20% withholding tax on interest derived from the following in vestments is a final withholding tax:

  • Time deposits, including time deposits placed abroad through a bank established in Indonesia or through a branch of a foreign bank
  • Certificates of deposit
  • Savings accounts

Income from the rental of land and buildings is subject to a final withholding tax at a rate of 10%.

Dividends paid to resident individuals are subject to a final with­holding tax at a rate of 10%.

Final income tax regime for small and medium-size business tax­payers. Effective from 1 July 2013, a new final tax regime applies to the business income of certain individuals and corporate tax­payers, excluding permanent establishments, with a gross turn­over of less than IDR4,800,000,000 per year. Qualifying taxpay­ers are subject to income tax at a rate of 1% of their monthly gross turnover, and the income tax is considered to be final. The gross turnover includes a local branch’s gross income, except for income from outside Indonesia.

The following taxpayers are excluded from this final tax:

  • Individual taxpayers performing trading and/or service activi­ties who use assembled infrastructure and public facilities that are not intended for commercial use
  • Corporate taxpayers who have not yet begun commercial operations
  • Corporate taxpayers that generate annual turnover in excess of the IDR4.8 billion threshold within a year after beginning their commercial operations

The business income covered by the final tax regime does not include income from independent personal services, such as ser­vices provided by lawyers, accountants, medical doctors and notaries.

Taxpayers qualifying for a different final tax regime (for exam­ple, construction companies) are not eligible for this 1% final tax.

Income derived by qualifying taxpayers other than business income that is subject to this 1% final tax, is taxed according to the prevailing tax rules.

Taxation of employer-provided stock options. Employer-provided stock options are not taxable to an individual at the time of grant or exercise. Income tax at the individual’s marginal tax rate is imposed at the time of sale on the difference between the sale price of the shares and the strike price. Sales of stock on the Indonesian stock exchange are also subject to a final withholding tax at a rate of 0.1% on the gross sale value of the stock.

Capital gains and losses. Capital gains are taxed at the same rates as business income and income from employment (see Rates). Capital gains are added to income from other sources to arrive at total taxable income.

The transfer of shares listed on the stock exchange is subject to withholding tax at a rate of 0.1% of the gross value of the transfer if the transferred shares are ordinary shares. An additional tax at a rate of 0.5% of the share value is levied on sales of founder shares associated with a public offering. Both withholding taxes are final. Founder shareholders must pay the 0.5% tax within one month after the shares are listed. Founder shareholders who do not pay the tax by the due date are subject to income tax on the gains at the ordinary income tax rates.

Income tax on land and building transfer. A transfer of land and buildings is subject to final income tax on the deemed gain resulting from the transfer or sale. The tax is charged to the trans­feror (seller). The tax rate is 2.5% of the gross transfer value (tax base). However, for transfers of simple houses and simple apart­ments conducted by taxpayers engaged in the property develop­ment business, the tax rate is 1%. This tax must be paid on receipt of some or all payments for the transfer of rights to land and buildings. The income tax is calculated based on the amount of each payment received including the down payment, interest, col­lection fees and other additional payments made by the buyer with respect to the transfer of the land and building.

The tax base is the higher of the transaction values stated in the relevant land and building right transfer deed or tax object sales value (Nilai Jual Objek Pajak, or NJOP). However, for transfers to the government, the tax base is the amount officially stipulated by the applicable government officer in the relevant document. In a government-organized auction, the gross transfer value is the value stipulated in the relevant deed of auction.

The transfer of rights deed can be signed by a notary only if the income tax has been fully paid.


Deductible expenses. To determine the taxable income of regular employees, gross income is reduced by the following amounts:

  • Standard deduction at a rate of 5% of gross income, up to a maximum of IDR6 million a year
  • Contributions to a pension fund approved by the Minister of Finance and to TASPEN (Pension Insurance Saving Agency), as well as old-age savings or old-age allowance contributions to TASPEN and to the Worker Social Security program (BPJS Ketenagakerjaan), paid by employees

To determine the taxable income of a pensioner, the gross pen­sion is reduced by a deduction of 5% of the gross pension, up to a maximum of IDR2,400,000 a year.

Personal allowances. Annual personal allowances are deductible from taxable income.

In June 2016, the Indonesian government announced new amounts of personal allowances. These new amounts are retroac­tively effective from January 2016. The following are the new amounts of the personal allowances.

Amount of allowance

Type of allowance                                                   IDR

Personal allowance                                                  54,000,000


Married persons’ additional

allowance                                                              4,500,000
Wife’s additional allowance if receiving

income not related to husband’s

or other family member’s income                        54,000,000


Additional allowance for each

dependent family member in

direct bloodline and for adopted

children, up to a maximum of

three individuals                                                   4,500,000


Business deductions. A self-employed business person may de duct from gross income ordinary expenses connected with earning income, including costs of materials, employee remuneration, bad debts, insurance premiums and administrative costs. Taxes other than income tax are deductible. If employee income taxes are borne by an employer, a grossing-up calculation must be made to claim the expense as a deduction from gross profit.

A business may also deduct the following expenses:

  • Depreciation and amortization, in accordance with specified rates
  • Contributions to approved pension funds
  • Losses from the sale of assets or rights used in a business
  • Foreign-exchange losses
  • Costs of research and development performed in Indonesia
  • Scholarship, apprenticeship and training costs
  • Fifty percent of the cost of automobiles provided to employees
  • Fifty percent of the cost of mobile phones provided to employees
  • Office refreshments provided to all employees

The following expenses may not be deducted:

  • Provisions or reserves, with exceptions for certain industries
  • Premiums for employees’ life and health insurance, unless paid by the employers and treated as income taxable to the employees
  • Benefits in kind provided to employees, including housing
  • Gifts, support and donations, with exceptions for certain dona­tions
  • Personal expenses
  • Salary paid to a member of an association, partnership or a limited partnership whose capital is not divided into shares
  • Income tax and administrative sanctions in the form of interest, fines and surcharges, and criminal sanctions in the form of fines in connection with provisions of the tax laws

Rates. The following tax rates apply to individuals.

Taxable income Tax rate Tax due Cumulative tax due
First 50,000,000 5 2,500,000 2,500,000
Next 200,000,000 15 30,000,000 32,500,000
Next 250,000,000 25 62,500,000 95,000,000
Above 500,000,000 30


The final withholding tax rates apply to termination pay.

Taxable income
Tax rate


Tax due
Cumulative tax due


First 50,000,000 0 0 0
Next 50,000,000 5 2,500,000 2,500,000
Next 400,000,000 15 60,000,000 62,500,000
Above 500,000,000 25


The final withholding tax rates apply to lump-sum payments of pensions.

Taxable income Tax rate Tax due Cumulative tax due
First 50,000,000 0 0 0
Above 50,000,000 5


Nonresident taxpayers are subject to tax at a flat rate of 20% on all Indonesian-source income.

If the resident individual does not have a required Tax Identification Number, the tax rates for withholding tax on employment income are increased by 20%. As a result, the rates range from 6% to 36%.

Credits. If non-employment income is also taxed in the country in which it arises, a foreign tax credit is allowed in computing the Indonesian tax. The credit equals the lesser of the foreign tax or the Indonesian tax applicable to that income.

Relief for losses. In general, losses may be carried forward for up to five years.

A spouse’s business losses may be offset against the business profits of the other spouse.

Other taxes

Land and buildings tax. A new regulation on land and building tax in Indonesia has been introduced. The land and building tax is now a 100% local government tax (Pajak Daerah). Land and building tax is levied on the sales value of the property at a maximum rate of 0.3%. The central government sets the maxi­mum rate. The local government is authorized to determine its own rate though local regulations, provided that it does not exceed the maximum rate set by the central government. The central government also determines the minimum value that is exempt from land and building tax, which is IDR10 million.

The new rules are effective based on each local regulation. By 31 December 2013, all provinces should have their own regula­tions regarding land and building tax. The existing regulation remains in effect until the local governments issue the new regu­lations.

Duty on the acquisition of land and building rights. In general, a transfer of land and building rights is subject to duty on the acquisition of land and building rights (Bea Pengalihan Hak Atas Tanah dan Bangunan, or BPHTB). The duty is payable by the buyer or the party receiving or obtaining the rights. Qualifying land and building rights transfers include sale-purchase and trade-in transactions, grants, inheritances, contributions to corpo­rations, rights separations, buyer designations in auctions and executions of court decisions with full legal force. Acquisitions of land and building rights in certain nonbusiness transfers may be exempt from BPHTB.

The tax base for the BPHTB is the Tax Object Acquisition Value (Nilai Perolehan Objek Pajak, or NPOP), which in most cases is the higher of the market (transaction) value or the NJOP of the land and building rights concerned. The tax due on a particular event is determined by applying the applicable duty rate of 5% to the relevant NPOP less an allowable non-taxable threshold. The non-taxable threshold amount varies by region. The maximum is IDR60 million, except in the case of inheritance, for which it may reach IDR300 million. The government may change the non­taxable threshold through regulation.

BPHTB is normally due on the date that the relevant deed of land and building rights transfer is signed before a public notary. The deed of rights transfer can be signed by a notary only if the BPHTB has been paid.

Social security

The institution called Badan Penyelengara Jaminan Sosial (BPJS) administers the Indonesia social security program. BPJS has the following two categories:

  • Worker Social Security (BPJS Ketenagakerjaan)
  • Health Care (BPJS Kesehatan)

Both BPJS Ketenagakerjaan and BPJS Kesehatan are mandatory.

Expatriates are required to participate if they work in Indonesia for more than six months. Indonesia has not entered into a total­ization agreement with any country.

The following percentage contributions of monthly salary are required for employers and employees under the Worker Social Security program.

Percentage of contribution

Type of                                                   Employer        Employee

program                                                       %                     %

Accident benefit

(Jaminan Kecelakaan Kerja)               0.24 to 1.74 (a)        0
Life insurance benefits

(Jaminan Kematian)                                       0.3                   0
Old-age benefit

(Jaminan Hari Tua)                                        3.7                   2
Pension benefit (b)

(Jaminan Pensiun)                                         2                      1

a) The rate depends on the type of industry of the company.

b) The salary is capped at IDR7,335,300 per month, effective from March 2016. The maximum monthly contribution amount is IDR146,706 for the employer and IDR73,353 for the employee. The salary cap is adjusted each year by a factor of one plus the previous year’s gross domestic growth.

The following percentage contributions of monthly salary are required for employers and employees under the Health Care program.

Percentage of contribution (%)

Employer                                                                4

Employee                                                                1

For the contributions under the Health Care program, the salary is capped at IDR8 million per month. Consequently, the maxi­mum employer contribution is IDR320,000 per month, and the maximum employee contribution is IDR80,000 per month.

Tax filing and payment procedures The tax year in Indonesia is the calendar year.

Married persons can separately file their own income tax returns even if they did not enter into a prenuptial agreement.

Employee taxes are withheld by the employer. The employer must file a monthly return by the 20th day of the following month. The monthly tax return for December serves as the annual return because it also reports the cumulative income and related tax for the respective calendar year.

Individuals are required to file individual income tax returns by 31 March following the end of the tax year. Individuals earning income only from employment are not required to file monthly tax returns.

Withholding tax is levied on a variety of payments to residents. A self-employed professional, including an accountant, lawyer, architect or consultant, has tax withheld at source on the settle­ment of invoices. The withholding tax rate is 2% of the gross amount. Withholding tax is an advance payment of income tax.

Self-employed individuals must make monthly advance tax pay­ments. The monthly payment amount is based on the previous year’s tax liability, reduced by tax withheld at source during the preceding year. The payment is due on the 15th day of the month following the income month.

Nonresident foreign taxpayers are not required to file tax returns in Indonesia, unless they conduct business or activities in Indonesia through permanent establishments.

Double tax relief and tax treaties

A taxpayer who has income derived outside Indonesia that is subject to taxation abroad is entitled to a credit, not to exceed the Indonesian tax payable on the foreign income.

Indonesia has entered into double tax treaties with the following jurisdictions.

Algeria                           Jordan                          Seychelles

Australia                        Korea (North)              Singapore

Austria                           Korea (South)              Slovak Republic

Bangladesh                    Kuwait                         South Africa

Belgium                         Luxembourg                Spain

Brunei                            Malaysia                      Sri Lanka

Darussalam                    Mexico                         Sudan

Bulgaria                         Mongolia                     Suriname

Canada                           Morocco                      Sweden

China                             Netherlands                  Switzerland

Croatia                           New Zealand                Syria

Czech Republic              Norway                        Taiwan

Denmark                        Pakistan                       Thailand

Egypt                             Papua New                  Tunisia

Finland                          Guinea                         Turkey

France                            Philippines                   Ukraine

Germany                        Poland                          United Arab

Hungary                        Portugal                       Emirates

Hong Kong SAR           Qatar                            United Kingdom

India                              Romania                       United States

Iran                                Russian                        Uzbekistan

Italy                               Federation                    Venezuela

Japan                             Saudi Arabia                Vietnam

The tax treaties generally provide for the elimination of double taxation of personal income and include specific provisions per­taining to artists, athletes, teachers, students and those engaged in employment and independent personal services.

Temporary visas

The Government of Indonesia has issued Presidential Regulation Number 21 of 2016 regarding Visit-Visa Exemption. This new regulation is effective from 10 March 2016 and revokes the Presidential Regulation Number 69 of 2015, as amended in the Presidential Regulation Number 104 of 2015, regarding the same matter.

Under the newly enacted Presidential Regulation, the number of jurisdictions whose nationals are exempted from the obligation to obtain a Visit-Visa in advance to enter Indonesia is increased to 169. This exemption is subject to the following terms and conditions:

  • The exemption can be applied to carry out various activities such as for tourism, transit, family visits, social, art and cultural activities, government visits, giving lectures, attending business meetings, seminars and conferences, and certain other activities.
  • The exemption cannot be used for journalistic purposes.
  • The duration of the stay in Indonesia is limited to 30 days.
  • The exemption cannot be renewed, extended or converted into another type of visa.
  • Nationals of foreign countries eligible for the exemption may only enter Indonesia through certain immigration checkpoints.

This Visit-Visa Exemption is available to nationals from the fol­lowing jurisdictions.

Albania                        Guyana                          Philippines

Algeria                         Haiti                               Poland

Andorra                       Honduras                       Portugal

Angola                         Hong Kong                    Puerto Rico

Antigua and                 SAR                              Qatar

Barbuda                       Hungary                        Romania

Argentina                     Iceland                           Russian

Armenia                       India                              Federation

Australia                      Ireland                           Rwanda

Austria                         Italy                               St. Kitts

Azerbaijan                    Jamaica                          and Nevis

Bahamas                      Japan                             St. Lucia

Bahrain                        Jordan                            St. Vincent

Bangladesh                  Kazakhstan                    and the

Barbados                      Kenya                            Grenadines

Belarus                         Korea (South)                Samoa

Belgium                       Kiribati                           San Marino

Belize                           Kuwait                           São Tomé

Benin                           Kyrgyzstan                    and Príncipe

Bhutan                         Latvia                             Saudi Arabia

Bolivia                         Laos                               Senegal

Bosnia and                   Lebanon                         Serbia

Herzegovina                 Lesotho                          Seychelles

Botswana                     Liechtenstein                  Singapore

Brazil                           Lithuania                        Slovak Republic

Brunei                          Luxembourg                  Slovenia

Darussalam                  Macau SAR                   Solomon Islands

Bulgaria                       Macedonia                     South Africa

Burkina Faso               Madagascar                   Spain

Burundi                        Malawi                          Sri Lanka

Cambodia                     Malaysia                        Suriname

Canada                         Maldives                        Swaziland

Cape Verde                  Mali                               Sweden

Chad                            Malta                             Switzerland

Chile                            Marshall                        Taiwan

China                           Islands                           Tajikistan

Comoros                      Mauritius                       Tanzania

Costa Rica                    Mauritania                     Thailand

Côte d’Ivoire                Mexico                          Timor-Leste

Croatia                         Moldova                        Togo

Cuba                            Mongolia                       Tonga

Cyprus                           Monaco                         Trinidad and

Czech Republic              Morocco                        Tobago

Denmark                        Mozambique                  Tunisia

Dominica                       Myanmar                       Turkey

Dominican                     Namibia                         Turkmenistan

Republic                        Nauru                            Tuvalu

Ecuador                         Nepal                             Uganda

Egypt                             Netherlands                   Ukraine

El Salvador                    New Zealand                 United Arab

Estonia                           Nicaragua                      Emirates

Fiji                                 Norway                         United Kingdom

Finland                          Oman                             United States

France                            Palau                              Uruguay

Gabon                            Palestinian                     Uzbekistan

Georgia                          Authority                       Vanuatu

Gambia                          Paraguay                        Vatican City

Germany                        Panama                          Venezuela

Ghana                            Papua New                    Vietnam

Greece                           Guinea                           Zambia

Grenada                         Peru                               Zimbabwe


Visitors from 64 jurisdictions may obtain a visa on arrival and pay a visa-on-arrival fee, which is USD35. The visa has a dura­tion of up to 30 days and can be extended only one time for an additional period of up to 30 days. The following are the jurisdic­tions whose nationals may obtain a visa on arrival.

Algeria                           Iceland                           Poland

Argentina                       India                              Portugal

Australia                        Ireland                           Qatar

Austria                           Italy                               Romania

Bahrain                          Japan                             Russian

Belgium                         Korea (South)                Federation

Brazil                             Kuwait                           Saudi Arabia

Bulgaria                         Laos                               Slovak Republic

Cambodia                      Latvia                             Slovenia

Canada                           Libya                             South Africa

China                             Liechtenstein                  Spain

Cyprus                           Lithuania                        Suriname

Czech Republic              Luxembourg                  Sweden

Denmark                        Maldives                        Switzerland

Egypt                             Malta                             Taiwan

Estonia                           Mexico                          Timor-Leste

Fiji                                 Monaco                         Tunisia

Finland                          Netherlands                   Turkey

France                            New Zealand                 United Arab

Germany                        Norway                         Emirates

Greece                           Oman                             United Kingdom

Hungary                        Panama                          United States

Visitors from other countries must apply for a visa at an Indonesian embassy or consulate abroad.

Foreign visitors wishing to conduct business meetings or non­commercial activities that have governmental, tourism, social and cultural aspects may obtain one of the following entry visas from an Indonesian embassy or consulate abroad:

  • Visa Kunjungan (VK) (single entry/single visit visa)
  • Visa Kunjungan Beberapa Kali Perjalanan (VKBP) (multiple entries/multiple visit visa)

The VKBP application must be made by a sponsor to an office of the Directorate General of Immigration in Indonesia. The Directorate General of Immigration informs the overseas Indonesian embassy or consulate through a telex confirmation when the visa application is approved. The applicant must obtain telex confirmation from the Directorate General of Immigration Jakarta, before submitting a visa application to the embassy or consulate. The embassy or consulate then issues the visa.

A VK is issued for a visit of up to 60 days. The company or spon­sor must provide a valid reason for requesting the visa, which may be renewed for additional one-month periods, subject to a maximum duration of the visa of six months (may be renewed four times). A VK application may be submitted directly to the Indonesian embassy or consulate in the home country. A holder of a VK or VKBP is not eligible for a work permit. A VK becomes invalid on exit from Indonesia, and another similar visa is required for any subsequent similar visits.

A VKBP is valid for a maximum period of 12 months. Under this type of visa, each visit may not exceed 60 days. A multiple-entry visa is recommended for people who regularly visit Indonesia to conduct business meetings and who do not establish residency in Indonesia.

Work permits and self-employment

The Indonesian government prefers that expatriates be employed in Indonesia only in positions that cannot currently be filled by Indonesian nationals. Companies that wish to hire expatriates must provide the necessary education and training programs for Indonesians who will replace the expatriates within a reasonable time period.

Employers must require their expatriate employees to obtain work permits. Obtaining the necessary visas and work permits in Indonesia can be a protracted and complex process. It is strongly recommended that a prospective employer work with a local agent to obtain the permits and visas necessary to employ expa­triates. Work permits are usually issued for a maximum period of 12 months and may be extended, subject to approval from the government.

Under Article 4 of the Regulation of Minister of Manpower Number 16 of 2015, the following types of employers may employ foreign nationals:

  • Government institutions, international bodies and representa­tive of foreign countries
  • Representative offices of foreign companies, including foreign trading companies and foreign news companies
  • Foreign private companies
  • Legal entities established under Indonesian Law or foreign enterprises registered with the relevant authorized institutions in Indonesia
  • Social, religious, educational and cultural institutions
  • Impresariat service enterprises

Under Article 4 (2) of the Regulation of Minister of Manpower Number 16 of 2015, the following types of employers cannot employ foreign nationals:

  • Firms
  • Commanditaire partnerships
  • Commerce enterprises
  • Limited partnerships
  • Associates
  • Cooperatives

Application procedure. An employer or sponsor must submit a Foreign Manpower Utilization Plan (Rencana Penggunaan Tenaga Kerja Asing, or RPTKA) document to the Ministry of Manpower (Kementerian Ketenagakerjaan, or Kemenaker) or to the Investment Coordinating Board (Badan Koordinasi Penanaman Modal, or BKPM). The manpower plan should include job titles for the expatriate applicants, a description of the job requirements, the number of individuals required, the time frame planned for each function, the number of Indonesians to be trained to replace the expatriates (not required for expatriates who will hold director or commissioner positions) and the educa­tional and training programs planned for the Indonesian employ­ees. With respect to the training of Indonesians to replace expatri­ates, the employer must train at least one Indonesian counterpart for every expatriate employed. A manpower plan must be approved before the submission of a work permit application.

Under Article 38 of the Regulation of Minister of Manpower 16 of 2015 regarding the Procedures for Foreign Manpower Utilization, to apply for work permits, the employer should pay in advance the Foreign Manpower Utilization Compensation Fund Levy (Dana Kompensasi Penggunaan Tenaga Kerja Asing, or DKPTKA) in the amount of USD100 per month for each for­eign person employed.

The work permit application is then submitted to the General Director of Manpower Development and Placement (Direktur Jenderal Pembinaan dan Penempatan Tenaga Kerja) at the Ministry of Manpower office or to the Head of the BKPM at the BKPM office. The application for each foreign national must include the following items:

  • Color copy of passport (validity of passport must be at least 18 months from the date of arrival)
  • Color copy of signed curriculum vitae (résumé)
  • Color copy of Certificate of Education in English, signed by the expatriate
  • Color copy of Certificate of Competency in English
  • Color copy of reference letter from previous employer
  • Color copy of medical or health or life insurance certificate in the expatriate’s name
  • Copy of domicile letter from the building management or land­lord of the proposed residence address in Indonesia
  • Soft copy of recent color photographs with red background

For the renewal of a work permit, the following documents are also required:

  • Color copy of Tax Registration Number (Nomor Pokok Wajib Pajak or NPWP)
  • Color copy of National Social Security Program registration certificate (Badan Penyelenggaraan Jaminan Sosial Ketenagakerjaan, or BPJS) from both the employer and the employee

The application must also include the following documents for dependents (if any):

  • Color copy of passport (validity of passport must be at least 18 months from the date of arrival), including blank pages
  • Color copy of marriage certificate in English (for spouse)
  • Color copy of birth certificate in English (for children)
  • Soft copy of recent color photographs with red background

On approval of the application, copies of all required documenta­tion for a work permit application are forwarded to the Kemenaker or BKPM. For each new application and renewal, the employer must pay in advance the Skill Development Fund levy of USD100 per month or USD1,200 per year before the work permit (Izin Mempekerjakan Tenaga Asing, or IMTA) can be approved. The Kemenaker or BKPM then issues the work permit.

The IMTA is the basis for the Directorate General of Immigration’s limited-stay visa (VisaTinggal Terbatas, orVTT) recommendation.

The expatriate must identify an Indonesian embassy or consulate abroad where the VTT may be collected. The Indonesian embassy in Singapore is commonly used for this purpose. The Direc torate General of Immigration informs the overseas embassy by telex when clearance is given for the issuance of the VTT. It is recom­mended that the expatriate bring a copy of the telex to the embassy with the request for the VTT.

Within 30 days after entering Indonesia, the holder of the VTT and all family members must report personally to the District Immigration Office of the district where the applicant resides to obtain limited-stay permit cards (Elektronik Kartu Izin Tinggal Terbatas, or E-KITAS; see Section H). Fingerprinting and a photo session are required.

The E-KITAS holder is granted a multiple re-entry permit, which is valid for 12 months.

The expatriate and all of his or her family members must register with the regional police office after the E-KITAS card and work permit are issued, to obtain a Police Report Certificate (Surat Tanda Melapor or STM).

On the expiration of the work permit and the final exit from Indonesia, a final exit permit, known as the Return on Immigration Document (RID), is required. The RID is valid for seven calendar days after the submission date.

Self-employment. Only Indonesian citizens may conduct business in Indonesia as self-employed persons. Citizens of other coun­tries must obtain the sponsorship of employers in Indonesia.

Residence visas

A residence visa, known as a limited-stay visa (Visa Tinggal Terbatas, or VTT; see Section G) is valid for a period of 30 days on arrival. It is issued exclusively to expatriates who are working in accordance with the prevailing government regulations.

Expatriates working in Indonesia on work permits must obtain a residence card, called a limited-stay permit card (Elektronik Kartu Izin Tinggal Terbatas, or E-KITAS) and other relevant stay permits. They should apply for the E-KITAS within the 30-day period mentioned above.

A VTT, E-KITAS and other stay permits may also be applied for by dependents who accompany the expatriates to reside in Indonesia.

An E-KITAS is renewable up to five times. Each extension is valid for one year.

Family and personal considerations

Family members. A foreign national possessing an E-KITAS and IMTA may apply for his or her spouse and children to reside in Indonesia if they fulfill the necessary requirements. A copy of the marriage certificate and a complete copy of the passport are required for the spouse, and birth certificates and complete cop­ies of the passports are required for the children. In addition, the spouse and children must register at the local immigration office for E-KITAS cards. The entire family must also register with the police.

The spouse of a foreign national who wishes to work in Indonesia must obtain a separate work permit.

Driver’s permits. Foreign nationals may not drive legally in Indo­nesia using their home country driver’s licenses. Inter national driver’s licenses are acceptable. Indonesia provides no driver’s license reciprocity with other countries.

To obtain an Indonesian driver’s license, foreign nationals must take a written and a physical exam. Photocopies of the passport and E-KITAS card must be attached to the driver’s license application.

In view of the driving conditions and commuting time, it is rec­ommended that foreign nationals hire Indonesian drivers. The base salary for drivers is about USD170 per month.