A PT PMA gives a foreign investor a company — but it does not, by itself, give anyone the right to work in Indonesia. Directors, managers, and foreign employees who are physically working in the country need the correct permits. Getting this wrong is a frequent and avoidable compliance failure.

The two pieces: work permit + stay permit

Working legally in Indonesia involves two linked approvals:

  • RPTKA / work authorisation — the company's approved plan to employ a foreign worker in a specific position
  • KITAS (Kartu Izin Tinggal Terbatas) — the limited stay permit that allows the individual to legally reside in Indonesia

You need both. A KITAS without a valid work basis, or work without a KITAS, is non-compliant.

A tourist or business visa is not a work permit

This is the single most common mistake. A B211 or visa-on-arrival allows visits and meetings — not employment. A foreign director who runs day-to-day operations on a tourist visa is working illegally, regardless of whether they draw a local salary.

The company can be perfectly legal while the people running it are not. Both the entity and its people must be compliant.

Key requirements to expect

  1. A position that is genuinely open to foreign workers (some roles are reserved for Indonesians)
  2. A registered local company (PT PMA) acting as sponsor
  3. Mandatory contributions and the DKPTKA levy for each foreign worker
  4. A local understudy or knowledge-transfer commitment for certain roles — a policy designed to build Indonesian skills and capacity, and one worth honouring in spirit, not just on paper

Staying compliant after approval

  • Renew the KITAS and work authorisation before expiry
  • Keep the foreign worker's role consistent with the approved position
  • Report changes (address, position, departure) as required
  • Maintain payroll and tax records for each foreign employee

Immigration and manpower compliance is where many otherwise well-run foreign businesses quietly slip — and the penalties, from fines to deportation, are severe. Grafasco helps inbound investors get their directors and key staff working legally from day one, so the people behind the investment are as compliant as the company itself.