Once you have your company legally set, you are ready to run your business. In this step, you need to have people to support your company. Not only rich of natural resources and potential markets, but Indonesia is also rich of labor forces. The problem is newly established foreign company in Indonesia, known as PT PMA, often has less knowledge and experiences to make use of the great labor potentials.

1. Recruitment In Indonesia
Understanding The Labor Situation and
Recruitment Process
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Since 2012

2. Once you have your company legally set, you are ready to run your
business. In this step, you ness to have people to support your company.
Not only rich of natural resources and potential markets, but Indonesia is
also rich of labor forces. The problem is newly established foreign company
in Indonesia, known as PT PMA, often has less knowledge and experiences
to make use of the great labor potentials.
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3. Indonesia’s Labor Situation
The population in Indonesia is more than 255 million, with 66.5% of them are in
productive ages (between 15-60 years old) and the median age is 28.2 years old. It
shows that Indonesia has a great potential of workforce since the population is
dominated by young generations who are ready to contribute in the economic sectors.
The labor force participation rate was 65.76% or approximately 169.6 million (2015),
with the minimum provincial wage standard between IDR 2,700,000 to IDR 4,000,000.
For higher and more skillful positions, the base salary would be at least IDR 5,000,000
depending on the area, skills or expertise, and length of work.
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4. Indonesia’s Labor Situation
Some of the greatest challenges in labor force in Indonesia are first, the
unequal distribution of workforce since most of the talented and skillful
workers are resided in big cities in Java, such as Jakarta, Surabaya, Semarang,
and Bandung. Second, because Human Development Index in Indonesia is
relatively lower than other countries in the world as well as in Asian region
(0.617), the quality of its labor force is considerably low. This challenge forces
PT PMA to recruit the best quality workers among the abundant of human
resources in Indonesia.
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5. Recruitment In Indonesia
PT PMA can hold the recruitment process by two methods. First is conducting an in-
house recruitment process and second is outsourcing the task to the third party. Either
way, each of the recruitment process usually follows the steps below:
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Launching job vacancy
ads to attract applicants.
•This is usually done
through media
campaigns. Placing the
ads in several reputable
national job sites such
as jobindo.com,
karir.com,
jobstreet.com,
jobsdb.com/Indonesia/,
and
bestjobsindonesia.com
is a great start.
However, for more
credibility, job seekers
usually recheck the job
ads by visiting the
company’s website.
Therefore, placing the
ad in the company’s
website is highly
advisable.
Reviewing all the
requirements
•The first thing to do
before placing the ads
openly to the public is
to list down all the
criteria needed for a
specific position.
Therefore, when there
are so many application
letters come in after
the vacancy ads being
placed publicly, the
next daunting task will
be to shortlist the
candidates.
Conducting the selection
process
•This is done through
written and/or oral
tests. The shortlisted
candidates will usually
follow several steps of
interview or selection
process to prove
themselves. This phase
is not only consuming a
lot of time but also
resources.
Providing
recommendations to the
end user
•After a tough selection
process has been done,
there will be some best
candidates left. The
company’s HRD or the
external party will then
give the best
candidates to the end
user (the company or
the company’s
department) to select
the most suitable one.

6. Since the recruitment process is an overwhelming task for any company, many of
them prefer to outsource the duty to the third party which has the credibility to do so.
As a market entry consulting firm, Cekindo also provides this service for PT PMA. With
years of experiences in this field plus wide-ranging of network it has to fully manage
the recruitment and HR establishment for PT PMA, we will put our best efforts and
resources to make sure that your company will have the best selections of candidates
that will suit your company’s needs.
In addition, our special knowledge about Indonesia, Indonesian culture, working
environments, workers’ characteristic, minimum regional base salary and other local
resources make Cekindo stands out as one of the leading PT PMA consulting firms in
Indonesia. It enables us to provide the best local manpower with world-class
qualifications that will support your team. It means that you will be equipped with
qualified workers who understand the local business systems and cultures but can play
and compete well in the global setting.
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7. Hiring Foreigners
In terms of hiring foreigners, Indonesia has a strict regulation that should be
followed. A PT PMA are not allowed to hire foreigners without obtaining a
special permission letter from The Ministry of Labor and Immigration and
other important documents signed by several government authorities under
the Ministry.
Cekindo will assist you to get the required documents and legalization for
both your company (that employs the expatriate) and the expatriate
candidates, including: The RPTKA, Visa for Expatriates, Work Permit (IMTA),
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8. THE RPTKA (THE FOREIGN MANPOWER
UTILIZATION PLAN) FROM THE MINISTRY OF MANPOWER.
Basically, there are 5 types of RPTKA which you foreign workers can obtain,
such as:
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General RPTKA
•It is a common
RPTKA for expats.
The holders of this
RPTKA can extend
the license after 5
years.
Temporary RPTKA
•This will be issued
for a maximum
period of 6 months
and cannot be
extended. Usually,
workers who need
to come to
Indonesia to do
temporary jobs
such as machinery
installations of
maintenances, trial
product
assistances, sales,
or services.
Emergency RPTKA
•This is a permit
issued for
emergency work
situations, such as
things that should
be done, fixed, or
addressed
immediately in
your company so
that it will not
potentially harm
the existence of the
company or the
general public. This
RPTKA can be
issued for a
maximum period of
1 month and
cannot be
extended.
Exclusive Economic
Zone RPTKA
•There is no time
restriction for this
RPTKA.
Impresario Service
Business RPTKA
•This RPTKA is given
to any expats who
want to manage or
organize
amusement
activities in
Indonesia. There is
no time restriction
for this RPTKA.

9. VISA FOR EXPATRIATES
Next, the RPTKA holders need to apply for TA01 (Approval
Recommendation Visa) to be able to get Indonesia Work Permit
(IMTA).
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10. WORK PERMIT (IMTA)
Every company that hires expatriates must have a written
permission from the Minister of Manpower. IMTA is available for
the maximum period of 1 year and can be extended as long as
the RPTKA is still valid. Especially for higher positions such as
company director(s) and also commissioner(s), the IMTA will be
longer, which is maximally of 2 years.
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11. There are at least 6 types of IMTA available in Indonesia, which
basically follow the RPTKA that the expatriates hold.
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General IMTA
•This IMTA
can be
obtained for
a maximum
period of 1
year and can
be extended.
Temporary
IMTA
•Temporary
IMTA is
issued for
maximally 6
months and
cannot be
extended.
Emergency
IMTA
•It can be
obtained
with the
maximum
period of one
month and
cannot be
extended.
Exclusive
Economic
Zone IMTA
•The EEZ IMTA
can be
obtained
with the
duration of 1
year and can
be extended.
Karaoke or
Singing Host
IMTA
• It is given
for 6
months
only and
cannot be
extended.
Permanent
Residence Permit
(KITAP)
• This is for any
expat who
apply for
permanent
resident permit.
The KITAP is
given for
maximally 1
year and can be
extended
afterward.
This is an overwhelming process if it is not done by an experienced agency who understands the
legal and bureaucratic systems in Indonesia. Considering that there are so many forms to be
filled and so many documents to be prepared, you need to be careful to conduct the whole
process if you want to recruit legally based on Indonesian Labor Law.

12. PT. Cekindo Bisnis Grup
Menara BCA Grand Indonesia 50th fl
Jl. MH. Thamrin No. 1
Jakarta Pusat 10310, Indonesia
info@cekindo.com/ +6221 580 6889
cekindo.com
Why Cekindo?
PT. Cekindo Bisnis Grup is a market entry consulting firm in Central
Jakarta, providing one-stop services to assist foreign companies
from various industries in expanding to Indonesia and beyond
Our main services, include Business Set Up, Business Process
Outsourcing, and Local Representation; more info on
www.cekindo.com
Our dynamic multinational team based in Jakarta to understand
the local market and utilize our extensive network to support our
client’s business and operation in Indonesia

13. PT. Cekindo Bisnis Grup
Menara BCA Grand Indonesia 50th fl
Jl. MH. Thamrin No. 1
Jakarta Pusat 10310, Indonesia
info@cekindo.com/ +6221 580 6889
cekindo.com
Contact Us