Hiring international talent can accelerate innovation and operations. However, hiring foreign employees in Indonesia involves strict regulations and multiple steps that many companies overlook.
Below are the five most common mistakes and practical fixes your HR team can apply immediately.
Mistake 1: Sponsorship and Entity Setup Issues
The Problem:
Companies try to hire foreign staff before establishing a legal Indonesian entity, or they use an entity type that’s not authorized to sponsor work visas.
Why It Happens:
Many assume the parent company abroad can directly sponsor foreign workers. In Indonesia, only locally registered entities (usually PT PMA) can legally employ expatriates.
The Fix:
- Set up the right legal entity and obtain mandatory business licenses before onboarding staff.
- Align job titles, headcounts, and RPTKA (manpower plan) with your company’s business scope.
Mistake 2: Choosing the Wrong Visa Type
The Problem:
Using a Business Visa for actual work or assigning employees to job scopes that don’t match their visa category.
Why It Happens:
Business visas are faster to process, but they are not valid for employment or salary-based work.
The Fix:
- Match every role with the correct visa:
- Work Visa (KITAS): For long-term employment.
- Investor Visa: For shareholders or directors managing a PT PMA.
- Business Visa: For meetings, training, and short-term visits only.
Mistake 3: Missing Work Permit Prerequisites
The Problem:
Submitting a KITAS without completing the required RPTKA or work permit (Notifikasi) approval.
Why It Happens:
Some HR teams treat the process as a single submission when, in fact, it includes several interrelated stages—RPTKA, Notifikasi, VITAS, and KITAS.
The Fix:
- Follow all steps in sequence.
- Prepare supporting documents (company licenses, job descriptions, passports).
- Consolidate submissions for multiple employees to ensure consistent data.
Mistake 4: Ignoring Payroll, Tax, and BPJS
The Problem:
After obtaining a KITAS, many companies forget to register the employee for NPWP (tax ID) or BPJS (social security).
Why It Matters:
Unregistered employees can trigger tax audits or renewal rejections during visa extensions.
The Fix:
- Register NPWP for each expatriate.
- Enroll them in BPJS Ketenagakerjaan and BPJS Kesehatan.
- Integrate payroll and PPh 21 tax deductions with immigration data.
Mistake 5: Poor Renewal and Status Tracking
The Problem:
Expired KITAS or late renewals cause overstay penalties and can damage the company’s compliance record.
The Fix:
- Build a renewal calendar with reminders at least 60 days before expiry.
- Assign one compliance manager to track all visa and work permit statuses.
- Use digital dashboards or partner services for centralized monitoring.
How Swift Visa Indo Helps Corporate HR Teams
Swift Visa Indo provides:
- End-to-end immigration management: from sponsorship to payroll integration.
- Group processing: ideal for multi-employee visa applications.
- Direct coordination with immigration and manpower departments.
- Compliance dashboard with real-time renewal alerts.
Quick Checklist
To ensure compliance, make sure your HR and legal teams:
- Have a valid PT PMA and complete licenses.
- Match roles with the right visa category.
- Complete RPTKA and Notifikasi before KITAS submission.
- Register NPWP and BPJS.
- Maintain a visa renewal tracker.
- Partner with a reliable visa management provider.
Need help fixing compliance issues?
Contact Swift Visa Indo for a fast audit and tailored corporate visa strategy.
