Many newly established foreign companies enter Indonesia with clear expansion strategies and well structured capital planning. However, operational execution is often delayed because one critical aspect remains unresolved, namely the legal authorization to employ Foreign Workers (Tenaga Kerja Asing or TKA).
In Indonesia, any company intending to hire TKA must obtain approval of a Foreign Manpower Utilization Plan (Rencana Penggunaan Tenaga Kerja Asing or RPTKA). This approval is issued by the Ministry of Manpower (Kementerian Ketenagakerjaan). Without an approved RPTKA, work visas and Limited Stay Permits or KITAS cannot be processed.
With the current digital integration through the OSS RBA (Online Single Submission Risk Based Approach) system and the TKA Online portal managed by the Ministry of Manpower, the process of how to apply for RPTKA is significantly faster than in the past. However, the efficiency of the process depends entirely on the accuracy of company data and the completeness of documentation from the beginning.
This article explains the practical steps to apply for RPTKA, required costs, available categories, and compliance strategies to ensure that newly established foreign companies can operate in Indonesia without legal disruption.
What Is RPTKA and Why Is It Mandatory for Foreign Companies
RPTKA is an official government approval that serves as the legal foundation for employing foreign workers in Indonesia.
The obligation is regulated under the Job Creation Law (UU Cipta Kerja) and further clarified through Government Regulation Number 34 of 2021 concerning the Employment of Foreign Workers. This regulation forms the primary legal framework governing the employment of foreign workers in Indonesia.
Without RPTKA approval, a company cannot proceed with work visa applications or Limited Stay Permit applications.
The regulatory philosophy is based on a selective employment principle. The government ensures that foreign workers are employed only for positions requiring specific expertise that is not yet sufficiently available in the domestic labor market. Additionally, companies are required to implement knowledge transfer programs to Indonesian employees.
For foreign investment companies, understanding how to apply for RPTKA at the early stage prevents system rejection and operational delays.
How to Apply for RPTKA Online for Newly Established Foreign Companies
Below is the structured process for how to apply for RPTKA efficiently.
Step 1: Ensure OSS RBA and Business Identification Number Data Are Synchronized
The first step is to verify that all company data in the OSS RBA system is accurate and consistent with actual corporate documents.
The TKA Online portal automatically validates the Business Identification Number (Nomor Induk Berusaha or NIB) and the Tax Identification Number (Nomor Pokok Wajib Pajak or NPWP).
If discrepancies are found in the company address or in the Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia or KBLI), the system will reject registration.
Common issues include differences between the company deed and OSS RBA records, inaccurate KBLI codes, and incomplete synchronization with the Legal Administration System (Administrasi Hukum Umum or AHU).
Conducting a legal data audit before starting the RPTKA application is the most effective strategy to prevent initial rejection.
Step 2: Prepare Company Documents and Foreign Worker Documents
Required company documents include:
- Active NIB
- Company Deed of Establishment and Ministry of Law and Human Rights approval
- Mandatory Manpower Reporting Certificate (Wajib Lapor Ketenagakerjaan or WLKP)
- Organizational structure clearly showing the foreign worker position
- Draft employment agreement
- Application letter and power of attorney if represented by a third party
Required foreign worker documents include:
- Passport valid for at least 18 to 30 months
- Educational certificate relevant to the intended position
- Professional certification or reference letter confirming at least five years of experience
- Health insurance policy issued by an Indonesian licensed insurance provider
Complete and accurate documentation significantly accelerates the verification process.
Step 3: Register and Submit Data Through the TKA Online Portal
Once the company account is registered, detailed information about the foreign worker must be submitted.
The company must input the position title, work location, duration of employment, and upload all supporting documents in the required format.
Ensure that the selected position is not included in the list of restricted positions for foreign workers.
Accuracy at this stage significantly influences the likelihood and speed of approval.
Step 4: Ministry Verification and Eligibility Assessment
The Ministry of Manpower conducts document verification within a maximum of two working days if all requirements are fulfilled.
In certain cases, the ministry may schedule a video conference session for additional clarification. During this session, the company must explain the necessity of hiring the foreign worker and outline the knowledge transfer plan to the designated Indonesian counterpart.
If the application is declared eligible, the system will issue a billing code for compensation payment.
Step 5: Payment of DKP TKA Through the Simponi System
After approval, the system generates a billing code for payment of Foreign Worker Compensation Fund (Dana Kompensasi Penggunaan Tenaga Kerja Asing or DKP TKA).
The compensation amount is USD 100 per month per position.
Payment is processed through the Simponi system which stands for Online Non Tax State Revenue System, using national banking channels such as automated teller machines or mobile banking.
Once payment is verified in real time, the RPTKA approval document is issued automatically.
Types of RPTKA Based on Employment Duration
RPTKA categories must align with operational needs.
Temporary RPTKA
Temporary RPTKA is valid for a maximum of six months and cannot be extended. It is typically used for audits, machinery installation, film production, or after sales technical services.
Long Term RPTKA
Long Term RPTKA is valid for up to two years and may be extended. It is commonly used for managerial and specialist roles.
Special Economic Zone RPTKA
Special Economic Zone RPTKA is designed for companies operating within Special Economic Zones (Kawasan Ekonomi Khusus or KEK) and may be granted for up to five years, offering extended validity and certain administrative advantages.
Emergency RPTKA
Emergency RPTKA is valid for one month and is used in urgent situations such as production disruptions.
Selecting the appropriate category is essential for compliance and operational planning.
In addition to selecting the correct category, companies must also manage the validity period of each approved RPTKA.
Companies employing foreign workers under long term RPTKA must initiate renewal applications at least 30 working days before expiry. Failure to do so may result in temporary loss of legal work status and disruption to visa renewal processes.
Cost of Applying for RPTKA
The primary cost component is the DKP TKA compensation of USD 100 per month per position. For a two year employment period, the total compensation amounts to USD 2,400.
This payment is categorized as Non Tax State Revenue under Indonesian fiscal regulations and must be completed before RPTKA approval is finalized.
Relationship Between RPTKA, Work Visa, and KITAS
RPTKA approval is the foundation for issuing a work notification required for work visa applications.
Once RPTKA is approved, the company applies for an electronic work visa. Upon arrival in Indonesia, biometric registration is conducted and the Limited Stay Permit or KITAS is issued electronically.
Without RPTKA approval, the immigration process cannot proceed.
Common Challenges in Applying for RPTKA and Practical Solutions
Frequent challenges include unsynchronized company data, system rejection of tax numbers, or incorrect document formatting.
The recommended solution is to ensure all documents are clearly scanned and officially translated where necessary.
Submitting applications outside peak system hours can also reduce technical disruptions.
Companies are advised to maintain a compliance calendar to monitor the validity period of RPTKA and residence permits.
Legal Risks of Operating Without RPTKA
Employing foreign workers without RPTKA approval may result in administrative sanctions starting from IDR 1 million per day per foreign worker.
In serious cases, deportation of the foreign worker may occur and the company may lose access to licensing services.
These risks can directly affect corporate reputation, regulatory standing, and long term investment stability in Indonesia.
The Role of XPND in Supporting RPTKA, KITAS, and Work Permit Applications
Understanding how to apply for RPTKA is only the first step. In practice, the process involves cross system coordination and strict administrative compliance.
Validation within OSS RBA, synchronization of NIB, payment of DKP TKA, work visa applications, and KITAS issuance require precise documentation management.
XPND acts as a strategic partner for newly established foreign companies seeking regulatory certainty.
XPND assists from the initial legal audit of company data in OSS RBA to the final issuance of RPTKA approval. The team ensures that job positions align with regulatory standards and that documentation meets ministerial requirements.
Beyond RPTKA, XPND also supports work visa applications, KITAS processing, and other immigration services required for foreign employees to legally reside and work in Indonesia.
This structured assistance allows foreign investors to focus on business expansion while minimizing regulatory risk.
For companies planning to recruit foreign professionals in the near future, ensuring that the entire legal process is managed by experienced professionals is a strategic investment that protects long term operational stability.
