Work & Business

Legally, no. Indonesian law requires a work permit for any work conducted in Indonesia regardless of who pays you. The proper route since 2024 is the E33G Remote Worker Visa (1-year KITAS, $60,000/yr income from foreign sources), and Bali has stepped up enforcement against foreigners working on tourist and visit visas. The Second Home Visa remains a clean long-term option for self-employed nomads who do not qualify for the E33G, but requires a large bank deposit.

The primary vehicle is a PT PMA (Perseroan Terbatas Penanaman Modal Asing - Foreign Investment Company). It allows up to 100% foreign ownership in most sectors. The minimum paid-up capital was lowered to Rp 2,500,000,000 (~$140,000) under BKPM Regulation 5/2025, though the minimum investment plan remains Rp 10 billion per business line. Registration goes through BKPM via the OSS portal. Expect 2–4 months and $2,000–$5,000 in legal and government fees. Once incorporated, the PT PMA can sponsor KITAS for foreign directors.

The Negative Investment List (now managed under the Omnibus Law's Priority Investment List) restricts or prohibits foreign ownership in sectors including: gambling, fisheries (certain types), media and broadcasting (max 20% foreign), retail trade below certain thresholds, alcohol production, traditional medicine manufacturing, and land transportation. Most tech, tourism, manufacturing, professional services, and F&B sectors are fully open to foreign investment. Always verify with a local lawyer before incorporating.

Government fees alone are Rp 1,200,000–2,400,000/year ($75–$150). However, the real cost includes: employer's RPTKA and IMTA applications (Rp 5M–15M, $315–$950), DPKK levy ($100/month paid by employer = $1,200/year), immigration agent fees ($500–$1,500), and your time. Total cost to the employer per year: $2,500–$4,500+. This is why many Indonesian companies prefer to hire locals and why KITAS sponsorship is a valued benefit in expat employment contracts.

Yes, in specific sectors. International schools throughout Indonesia hire qualified English teachers with TEFL certificates for Rp 25M–80M/month. Multinational companies in Jakarta hire expats for senior management, technical, and specialist roles with generous packages. Bali's tourism and hospitality sector hires for management roles. The digital and creative economy (design, marketing, tech) has growing demand. For most other roles, Indonesians are preferred both by law and economics - the DPKK levy makes hiring foreigners significantly more expensive.