Working in Indonesia: an employer with a plan, five years' experience, and no work on a retirement visa

Yes, you can work in Indonesia, but not just like that and not on every visa. It starts with an employer: they have a plan for the use of foreign employees approved by the Ministry of Manpower (Kemnaker), the RPTKA, and then comes the E23 work visa. As an employee you have education that matches the position, at least five years of experience, and the duty to transfer your knowledge to an Indonesian colleague. The find for whoever comes on a retirement or remote worker visa: working for payment from Indonesian individuals or companies is explicitly prohibited on those, and the immigration service also names selling goods or services.

Who may employ a foreigner?

According to Kemnaker an employer of foreign employees can be, among others: a government institution, a representation of a foreign state or an international organisation, a representation of a foreign company, a foreign company active in Indonesia, an Indonesian legal entity (a PT or foundation), or a social, religious, educational or cultural institution. The single-person PT, the Perseroan Terbatas perorangan, is excluded. A private individual as employer is not on the list.

The employer applies for approval of the plan with, among other things, its business registration, the articles of association, proof of the employer's reporting obligation, its address and a draft employment contract. For work of longer than six months an organisation chart is added.

What does Indonesia require of you as an employee?

Requirement	What Kemnaker and the immigration service ask
Education	matching the position you will fill
Experience	at least 5 years, matching the position
Knowledge transfer	to an Indonesian colleague who accompanies you
Visa	E23, with the notification from Kemnaker, to be delivered within 90 days of arrival
Funds	at least 2,000 dollars
Passport	valid for at least 6 more months
Costs E23	Rp5,250,000 up to 180 days, Rp7,000,000 up to one year, Rp9,500,000 up to two years

With the E23 visa you may bring your family and work according to your employment contract. What you may not do: work that doesn't fit your stay permit, and sell goods or services, unless that is part of your job.

And on a retirement or remote worker visa?

On the E33F retirement visa it is prohibited to sell goods or services and to work for payment from individuals or companies in Indonesia. The E33G visa is for those employed by a company outside Indonesia, with at least 60,000 dollars a year; you carry out assignments for your foreign employer there, and the same ban on Indonesian payment and sales applies to that visa.

A job for an Indonesian client is not a grey area on these visas. The immigration service warns that prohibited activities can lead to fines, deportation and other legal charges. Whoever wants to do business or work in Indonesia switches to a work or investor route, and doesn't start on a retirement visa.

What changes if you work in Indonesia?

Two things. For your healthcare: the Indonesian Ministry of Health names as mandatory participants of the national health insurance JKN everyone, including foreigners who work in Indonesia for at least six months. For your tax: a foreigner who is a resident taxpayer and has certain expertise can be taxed only on Indonesian income for four tax years. That expertise is fixed in a list of 25 positions, with knowledge of science, technology or mathematics, a certificate and at least five years of experience. It is a choice: whoever uses the scheme cannot also invoke the tax treaty. More on that in AOW, pension and tax in Indonesia.

Which residence route fits if you don't work is in the residence routes to Indonesia; the order of visa, permit and arrival in the journey at /indonesie.

In Vertrekklaar this is phase 1 of 5 of the journey, step 1.2: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Indonesia or go straight to step 1.2 in the open plan.