Hiring foreign professionals in Indonesia can significantly boost your business—but navigating visas, permits, and compliance often becomes the biggest barrier.
Questions like:
- “Which visa is correct for our employee?”
- “How do we sponsor someone legally?”
- “Can a foreigner work remotely from Indonesia?”
- “What if our company doesn’t have a local entity here?”
are extremely common.
Indonesia’s immigration and manpower rules are detailed, frequently updated, and involve various government bodies. A single error can lead to delays, rejections, or even legal penalties.
But there’s one solution that removes nearly all the complexity:
Employer of Record (EOR) — your local legal employer in Indonesia that manages all work permits, visas, payroll, and compliance so you don’t have to.
Below is a practical, easy-to-understand breakdown of how an EOR simplifies the entire visa and work permit process.
1. Why Are Indonesian Work Permits So Complicated?
Indonesia has strict requirements for employing foreigners. You cannot legally hire or pay a foreign worker—even remotely—without following the proper procedures.
Common challenges foreign companies face:
- You need a local entity to sponsor a visa
- Multiple government approvals are required
- Each job role uses a different visa type
- Some documents must be translated or legalized
- Regulations change frequently
- Processing can take weeks
- Visa misuse leads to high penalties
- Job positions for foreigners are limited
- Communication barriers with authorities
Even well-established global companies often struggle with these requirements.
2. What Is an EOR (Employer of Record)?
An EOR is a licensed Indonesian entity that legally employs workers on behalf of your foreign company. You keep control of the work.
The EOR handles everything legal and administrative:
- Drafting and issuing employment contracts
- Payroll and income tax compliance
- BPJS health & employment registration
- Work permit (IMTA/Notifikasi)
- Visa sponsorship (KITAS, etc.)
- Monitoring renewals & regulatory updates
Result:
You focus on operations; the EOR ensures full legal compliance.
3. EOR vs Traditional Hiring
| Hiring Method | Can Sponsor Visa? | Requires Local Entity? | Compliance Risk |
|---|---|---|---|
| Contractor/Freelancer | ❌ No | ❌ No | ⚠ Very High |
| Direct Hire | ✅ Yes (but entity required) | ✅ Yes | ⚠ Medium |
| EOR | ✅ Yes (EOR sponsors) | ❌ No | ✅ Low |
Why companies choose EOR:
- No need to set up a PT or PT PMA
- No direct immigration processing
- No paperwork or regulatory confusion
- No risk of incorrect visas
4. Visas & Permits an EOR Can Sponsor
Depending on role and purpose, the EOR handles:
- KITAS (Work Permit) — for long-term employment
- Business Visa — for meetings/negotiations (not for working)
- Dependent/Spouse Permits — for employee families
- Investor KITAS — for directors or shareholders
- Short-Term Work Permits — technical roles up to 6 months
A skilled EOR knows exactly which permit matches each position.
5. How an EOR Manages the Entire Visa Process (Step-by-Step)
Step 1: Eligibility & Role Review
- Analyzing job description
- Verifying candidate qualifications
- Selecting the correct visa type
Prevents rejections caused by wrong classifications.
Step 2: RPTKA (Foreign Manpower Plan)
The EOR submits a manpower plan to the Ministry of Manpower.
Mandatory before any work permit is issued.
Step 3: Work Permit (Notifikasi / IMTA)
- Payment of DKPTKA (skill development fund)
- Approval of foreign worker role
Grants the legal right to work in Indonesia.
Step 4: Visa Approval (VITAS Telex)
- EOR submits application to immigration
- Employee receives entry visa to enter Indonesia
Step 5: KITAS Processing
After arrival:
- Biometrics & photo at immigration
- KITAS card & digital permit issued
Step 6: Mandatory Registration
The EOR registers the employee for:
- BPJS Health Insurance
- BPJS Employment
- NPWP (tax ID)
Employee becomes fully compliant for work and tax.
Step 7: Ongoing Compliance
The EOR handles:
- Renewals
- Role updates
- Address changes
- Monthly taxes
- Annual reporting
No deadlines missed, no legal issues.
6. What About Remote or Foreign-Based Workers?
Scenario 1 — Working from abroad
- No Indonesian work permit needed
- EOR can hire them as offshore contractors
- Must NOT perform work physically in Indonesia
Scenario 2 — Relocating to Indonesia
- Full KITAS sponsorship provided
- Smooth transition from abroad to Indonesia
Scenario 3 — Remote + occasional visits
- EOR handles business visas
- If any work is performed locally → must upgrade to work KITAS
The EOR ensures the correct status for each case.
7. Key Benefits of Using an EOR for Visas
1. Hire without establishing a company
Setting up a PT PMA takes months and requires significant capital.
2. Licensed visa sponsorship
The EOR already meets all government requirements.
3. One partner for everything
From documents to government coordination.
4. Reduced legal risk
Full compliance with manpower and immigration laws.
5. Lower cost & predictable timelines
No need for lawyers, HR staff, or in-house immigration experts.
8. Common Mistakes Companies Make and How EOR Prevents Them
| Mistake | Consequence | EOR Solution |
|---|---|---|
| Hiring foreigners as freelancers | Illegal work, deportation | EOR hires legally |
| Using business visas to work | Visa misuse penalties | EOR issues correct KITAS |
| Wrong job title | Permit rejection | EOR aligns roles with regulations |
| Missing renewal deadlines | Overstays & fines | EOR tracks all expiry dates |
| DIY document handling | Delays & errors | EOR manages all paperwork |
| No tax registration | Penalties | EOR registers NPWP & files taxes |
9. How EOR Supports Employees
Employees receive:
- Legal work authorization
- BPJS health & employment benefits
- Clear taxes & documentation
- Local assistance in Bahasa Indonesia
- Support with renewals & dependents
This increases confidence, stability, and performance.
Read more : EOR for startup company
10. What the EOR Needs from You
Only a few items:
- Candidate’s CV & passport
- Job description
- Expected salary
- Start date
- Relocation or remote-work plans
The EOR manages everything else.
11. Quick FAQ
Can I hire foreigners without a local entity?
Yes—through an EOR.
Who is the legal employer?
The EOR. You manage daily tasks.
Can employees work remotely from abroad?
Yes—no Indonesian permit required.
Can dependents join?
Yes—EOR can process spouse/children permits.
What if regulations change?
The EOR adapts and keeps you compliant.
12. Is EOR the Right Solution for You?
Choose EOR if you want to:
- Hire quickly
- Avoid entity setup
- Transfer foreign staff easily
- Eliminate visa confusion
- Stay fully compliant
- Reduce cost & risk
Read more about EOR and PEO Indonesia
13. The Bottom Line
Indonesia’s visa and work permit process can be demanding, confusing, and risky if handled alone.
Doing it yourself:
❌ Long process
❌ High cost
❌ Mistakes = serious penalties
Using an EOR:
✅ Legal, fast hiring
✅ Zero administrative burden
✅ No local entity required
✅ Full compliance guaranteed
✅ Peace of mind for employers & employees
14. Ready to Hire or Relocate Talent in Indonesia
If you want to:
- Hire employees legally in Indonesia
- Bring foreign experts into the country
- Skip the bureaucracy and setup costs
- Enjoy a smooth, compliant onboarding
Then an EOR is your most efficient, secure, and cost-effective solution.
Let’s make hiring in Indonesia easy.
ank you for reading this article. If you need more information on how and what tax regulations in Indonesia, WeSrve provides tax and accounting services that will help you to simplify your work tasks.
To learn more about our company and our services, visit our website or contact us through email: support@wesrve.co.id and WhatsApp.
We look forward to serving you and helping you achieve your goals.
