Foreigners who work in Indonesia are an important part of the country's workforce. Although they may not be from Indonesia, their contributions to the country and its economy through their work has not gone unrecognized, as has been shown by the many foreigners who have been hired to work there.

Hiring Foreigners in ID

Foreigners in Indonesia’s Workforce

As a country which has been influenced by colonization for many centuries, foreigners have left an impact on Indonesia for many years. Therefore, many Indonesian citizens today have mixed feelings with regard to foreigners who have made plans to live and work in the country. While some locals are open to the addition of foreigners to Indonesia’s workforce, several others fear that these immigrants are ‘stealing their jobs.

The number of foreign workers who are currently working in Indonesia has gradually been increasing. The Investment Coordinating Board (BKPM) reported that there are 95,335 foreign workers currently in Indonesia. However, although this number has been increasing, it is much less than what one might assume. When this figure is compared to that of the country’s total workforce of over 127 million individuals, the proportion of foreign workers in Indonesia can be seen to be one of the world’s lowest at just 0.075% of the workforce.

This fact was supported by BKPM chairman Thomas Lembong. In a recent interview, Lembong stated that the foreign workforce in Singapore makes up 36% of its total workforce, while Malaysia’s and Thailand’s respective foreign workforces accounts for 15.3% and 4.5% of those countries’ total workforces. One of the countries with the highest proportion of foreign workers in the world is Qatar. In Qatar, foreign workers comprise 96% of the nation’s entire workforce. Thus, when the figures related to foreign workers in Indonesia are compared to those of other countries, it can clearly be seen that Indonesia’s foreign workers have not left as much of an impact on the country’s labor force as some might think.

However, certain foreigners may have some advantages in Indonesian industries. This is especially true of skilled foreign workers. Foreigners who are highly skilled and knowledgeable will be able to teach their skills to and share their knowledge with Indonesian workers.

Process of hiring Foreigners in Indonesia

Indonesia has strict regulations that which are to be followed by any company which intends to hire any foreigners. A foreign company based in Indonesia, also known as a PT PMA, is not allowed to hire foreigners without obtaining a special permission letter from the Ministry of Labor and Immigration as well as other important documents signed by several government authorities under the Ministry.

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Work Permit

Any hired foreigners in Indonesia must have a valid work permit. Work permits in Indonesia are commonly referred to as KITAS; however, this is not entirely accurate because KITAS is merely the card that proves t