Indonesia is a unique country with breathtaking natural beauty, hospitable and friendly people, which naturally attracts foreigners from all over the world. Indonesia is not only a popular tourist destination, but also an attractive choice for real estate investment, permanent relocation, and employment. Although not being a global economic powerhouse, Indonesia is a reasonably developed country with modern metropolises, a comfortable infrastructure, and a decent standard of living. In this article, we will discuss how to find a job in Indonesia, the documents required for employment, and the prospects that await foreigners.
Content:
- Areas of employment for foreigners
- Obtaining work permits
- Documents required for obtaining a work visa
- Taxes while working in Indonesia
- Let us help you buy property in Indonesia!
Areas of employment for foreigners
The capital city, Jakarta, offers the most opportunities for foreign employment. Jobs can also be found in cities such as Surabaya and Bandung, on the island of Kalimantan, and in the province of Papua, especially in the oil and gas and mining sectors. If you are interested in the tourism industry, Bali is the best place to be. Overall, about 48% of the country's workforce is employed in the service sector, 13% in industry, and 39% in agriculture.
In terms of wages, the average monthly salary is currently around 8–9 million IDR, or about USD 600–700. However, income levels vary depending on profession, industry, location, and qualifications. For example, skilled professionals in leading international companies who are in demand in the job market can earn salaries starting from USD 2,000–3,000 and above. Financial managers can earn from $1,500 to $3,000, while experienced engineers can earn up to $5,000.
If you have professional skills, English and Indonesian language knowledge, qualifications, and at least 5 years of work experience, you can easily find a well-paying job.
It's important to note that some organizations are prohibited by Indonesian law from hiring foreigners. Legal services, human resources, quality control, and health, safety and environmental professions are all protected fields in Indonesia and are off-limits to foreigners.
However, foreigners are often welcome in sectors that require specialized technical knowledge, such as oil and gas, mining, chemicals, textiles, forestry, and agriculture. There are also career opportunities in the automotive and electronics sectors. Another option is jobs that require a high level of spoken English, such as in the export industry.
If you want to work in the tourism sector in Bali, remember that you will need to be sponsored by a company before you arrive. Make sure the company is willing to invite you for a work visa. Otherwise, you risk deportation or imprisonment.
Also, remember that foreigners are allowed to own their own businesses in Indonesia. However, depending on the industry, you may need a local business partner and/or significant start-up capital.
Obtaining work permits
You cannot work in Indonesia on a tourist or business visa; the latter only allows short-term assignments or business training and is not suitable for permanent employment. A work visa is required for permanent employment.
The hiring company must have the appropriate permit. Obtaining these documents can take weeks or even months. The work permit is usually applied for by the employer, and the local branch of the Ministry of Manpower reviews the application and decides on its approval. In most cases, foreign workers are allowed to stay in the country legally for one year, occasionally up to 3–5 years. The length of the permit depends on the job and the location. Once you have the permit, you can apply for a work visa at the consulate.
There are two types of visas for foreign employees who wish to work in Indonesia:
- VITAS (Limited Stay Permit Visa)
- ITAS (Limited Stay Permit)
VITAS, also known as "Limited Stay Visa," is issued by the Indonesian government to foreigners who plan to stay in the country for an extended period of time. It is usually issued for work, education, investment, or family reunification. To obtain it, a foreigner must provide the necessary documents and meet the requirements of the Indonesian Immigration Department. To apply for VITAS, sponsorship from an Indonesian company, educational institution, or family member with Indonesian citizenship is required. The sponsor usually provides a "Surat Penjaminan" (Letter of Guarantee) confirming their responsibility for the foreign citizen during their stay in the country. The VITAS application process may also involve medical examinations, security checks and other documentation.
ITAS (Izin Tinggal Terbatas), also known as "Limited Stay Permit," is a document issued by the Immigration Department to foreigners staying in Indonesia for a specific purpose, such as work, education, investment, or family reunification. The ITAS is of limited duration and must be extended or renewed upon expiration. It is usually issued for one year. After obtaining ITAS, foreign nationals must register with the local immigration office to obtain an identity card confirming their legal residence in Indonesia.
Please note that once a person has worked and lived in the country for 5 years with an ITAS, they can apply for a Kartu Izin Tinggal Tetap (KITAP) to obtain permanent residency.
Documents required for obtaining a work visa
To obtain a work visa and move to Indonesia, a foreign worker must provide the following documents:
- A copy of a valid passport
- Proof of medical insurance
- Color photographs
- A copy of a training certificate, authenticated with the employer's seal and signature
- A copy of the resume authenticated by the employer's seal and signature
- Documentation of at least 5 years of work experience
For more detailed information on immigration, timelines and required documents, you can visit the Directorat Jenderal Imigrasi platform.
It's also important to ensure that all family members' passports are valid for the duration of their intended stay, plus an additional six months. Remember that your spouse does not automatically have the right to work in Indonesia, even if you do.
Make sure that the company name, address, and other details on your visa match the information on the official documents. These details are a crucial part of your permit compliance and should not be overlooked.
Taxes while working in Indonesia
In Indonesia, residents are required to pay taxes on their income regardless of their place of employment, while non-residents are only taxed on income earned within the republic. The tax rate for residents can go up to 30% of total income (a progressive scale applies), while non-residents are subject to a tax rate of 20% on their total income.
Personal income tax (PPh 21) is deducted directly from an employee's income. Rates vary by income level and are calculated based on factors such as marital status and number of dependents. In addition, under Indonesia's social security program (BPJS), both the employer and the employee are required to pay contributions for mandatory social insurance, including health insurance and pension contributions.
If you work in a company or plan to start your own business in Indonesia, you may be required to pay a corporate income tax (PPh Badan) of 25% on the amount earned.
Let us help you buy property in Indonesia!
If you would like to make Indonesia your sunny and hospitable new home, or are looking for investment opportunities or permanent relocation, we invite you to explore the real estate options available on our website. Our catalog offers a wide range of properties from trusted developers and agencies, and is updated regularly. You can use filters by location, city or district, price, area, number of rooms and other parameters to find the perfect property for you. Now is the best time to consider investing in highly liquid foreign real estate. We wish you success in finding your future home in Indonesia!