Working in Bali as a Foreigner – Permits and Legal Requirements by The Bali Lawyer

Bali is one of the most attractive destinations for expatriates seeking employment, business opportunities, or entrepreneurial ventures. The island’s vibrant tourism sector, hospitality industry, and growing startup ecosystem provide opportunities for foreigners to work in Bali. However, working legally in Bali requires compliance with Indonesia’s strict immigration and employment laws. Foreign nationals must obtain the proper permits and visas to avoid fines, deportation, or legal complications.

At The Bali Lawyer, a trusted law service based in Bali, we assist foreigners in understanding the legal framework for working in Indonesia. This comprehensive guide covers eligibility, permits, visa types, application procedures, and legal considerations for foreigners seeking employment or business opportunities in Bali.

Understanding Work Regulations for Foreigners in Bali

Indonesia’s labor and immigration laws regulate foreign employment. Foreigners are only permitted to work in Indonesia with proper authorization issued by government authorities. Working without the necessary permits can lead to severe penalties, including fines, deportation, and bans on re-entry.

Key points:

  • Foreigners must have a valid work permit (IMTA) issued by the Indonesian Ministry of Manpower.

  • A Limited Stay Permit (KITAS) is required for long-term employment.

  • Employers in Bali must comply with regulations regarding foreign staffing quotas and labor rights.

  • Certain jobs and sectors may have restrictions on foreign employment.

Types of Work Permits for Foreigners in Bali

Foreigners can work legally in Bali under specific permits depending on the type of employment. The most common permits include:

1. IMTA (Izin Mempekerjakan Tenaga Kerja Asing / Work Permit)

  • Issued by the Ministry of Manpower for foreigners employed by an Indonesian company.

  • Required for any foreign national working in Bali, whether in a permanent or contract position.

  • Validity is tied to the employment contract, typically 1–2 years, and can be renewed.

2. Limited Stay Permit (KITAS – Kartu Izin Tinggal Terbatas)

  • KITAS is required for long-term employment in Indonesia.

  • Foreign employees use KITAS to legally reside in Bali while working.

  • KITAS is tied to the employer and must be renewed annually.

3. Business and Investment Permits (PT PMA)

  • Foreigners establishing a company or investing in Indonesia must obtain a foreign investment company license (PT PMA).

  • PT PMA allows foreign nationals to hold director positions legally and obtain work permits to manage the company.

Eligibility Requirements for Foreigners Working in Bali

To obtain a work permit and KITAS, foreigners must meet specific criteria:

  1. Valid Passport

    • Minimum validity of 18 months is typically required.

  2. Employment Offer from an Indonesian Company

    • Foreigners must have a confirmed employment agreement with a legally registered Indonesian entity.

  3. Professional Qualifications

    • Proof of education, experience, and skills may be required to justify employment over a local candidate.

  4. Health and Background Clearance

    • A medical certificate and clean criminal record may be required.

  5. Employer Compliance

    • The employer must adhere to foreign staffing quotas and submit necessary documentation to obtain the work permit.

Step-by-Step Process to Work Legally in Bali

Foreigners must follow a structured process to ensure legal employment in Bali:

Step 1: Secure a Job Offer

  • Foreigners must have a confirmed job offer from an Indonesian company.

  • The employer should provide a detailed employment contract outlining role, responsibilities, and duration.

Step 2: Employer Applies for Work Permit (IMTA)

  • The Indonesian employer submits an IMTA application to the Ministry of Manpower.

  • Required documents include company registration, tax records, and justification for employing a foreigner.

Step 3: Obtain Limited Stay Visa (VITAS)

  • After IMTA approval, foreigners apply for a VITAS (Temporary Stay Visa) at an Indonesian Embassy or Consulate in their home country.

  • VITAS allows entry into Indonesia for employment purposes.

Step 4: Convert VITAS to KITAS

  • Upon arrival in Bali, VITAS is converted into KITAS for long-term residence.

  • KITAS is issued by the Indonesian Immigration Office and includes biometric registration and residence card issuance.

Step 5: Report to Immigration and Employment Authorities

  • Foreign employees must register with local immigration authorities and comply with Indonesian labor regulations.

  • Employer ensures tax registration and mandatory social security contributions (BPJS Ketenagakerjaan and BPJS Kesehatan).

Employer Obligations for Hiring Foreigners in Bali

Employers in Bali hiring foreign employees must comply with strict regulations:

  1. Foreign Staffing Quotas

    • Companies must meet legal ratios of local to foreign employees.

  2. Justification for Hiring Foreigners

    • Employers must demonstrate that the foreign employee possesses specialized skills not available locally.

  3. Work Permit Renewal

    • Employers are responsible for timely renewal of IMTA and KITAS.

  4. Compliance with Labor Laws

    • Employers must provide fair wages, social security, and benefits under Indonesian labor law.

  5. Tax Reporting

    • Employers must report foreign employee income and assist with tax compliance.

Common Visa Types Related to Working in Bali

While IMTA and KITAS are mandatory for long-term work, foreigners may enter Bali under other visa types before obtaining work permits:

  1. Tourist Visa

    • Allows short-term stays but does not permit employment.

    • May be used temporarily before obtaining a VITAS.

  2. Social-Cultural Visa (Visa Sosial Budaya)

    • Allows stay up to 6 months for family visits, cultural, or educational purposes.

    • Not valid for paid employment but can facilitate transition to work visa.

  3. Business Visa

    • Allows attending meetings, negotiations, and conferences.

    • Does not permit active employment in Indonesia.

  4. Investor or PT PMA Visa

    • For foreign nationals establishing a company or investing in Bali.

    • Legal work permit and KITAS can be obtained through PT PMA.

Legal Considerations for Foreigners Working in Bali

  1. Working Without a Permit

    • Illegal employment can result in fines, deportation, and entry bans.

  2. Visa and Permit Validity

    • Always monitor expiration dates for KITAS, IMTA, and VITAS to avoid violations.

  3. Employment in Restricted Sectors

    • Certain jobs in Indonesia are restricted to local citizens; foreigners must verify eligibility.

  4. Tax Compliance

    • Foreign workers are subject to Indonesian income tax (PPh 21) and must file returns appropriately.

  5. Family Sponsorship

    • Foreign employees may sponsor spouses and children for dependent KITAS visas.

Benefits of Legal Employment in Bali

  1. Long-Term Residency

    • KITAS provides legal residence and work rights in Bali.

  2. Access to Social Security

    • Registration for BPJS ensures access to healthcare and employment benefits.

  3. Family Inclusion

    • Dependents can legally reside in Bali through sponsored KITAS.

  4. Business Opportunities

    • PT PMA structures allow foreigners to legally manage companies and obtain work permits.

  5. Peace of Mind

    • Legal compliance reduces risk of fines, deportation, or employment disputes.

Why Use The Bali Lawyer for Work Permit Services

At The Bali Lawyer, we specialize in guiding foreigners through the process of obtaining work permits and visas for employment in Bali. Our services include:

  • Assessing eligibility for IMTA, KITAS, and PT PMA-based work permits.

  • Preparing and notarizing required documentation.

  • Coordinating with immigration and labor authorities for timely approval.

  • Assisting with dependent visas for family members.

  • Ensuring compliance with Indonesian labor and tax regulations.

Our expertise ensures a smooth application process, minimizes delays, and guarantees full compliance with Indonesian employment law.

Tips for Foreigners Seeking to Work in Bali

  1. Secure Employment Before Arrival

    • Do not attempt to work in Bali without a proper work permit.

  2. Engage Legal Assistance

    • Professional guidance ensures accurate permit applications and compliance.

  3. Maintain Document Validity

    • Keep passports, permits, and employment contracts up to date.

  4. Understand Your Rights

    • Be aware of labor laws, wage standards, and benefits entitled to foreign employees.

  5. Plan for Family Sponsorship

    • Include spouse and children in the legal residency process if needed.

 

Working in Bali as a foreigner requires proper planning, legal documentation, and adherence to Indonesian labor and immigration laws. Foreign nationals must obtain an IMTA work permit, KITAS residency, and comply with employer and government regulations.

The Bali Lawyer provides comprehensive legal support for foreigners seeking employment in Bali. From assessing eligibility and preparing documentation to coordinating with authorities and managing permit renewals, our team ensures your work in Bali is legal, secure, and hassle-free.

Contact The Bali Lawyer today to navigate the complex process of working legally in Bali and obtain the necessary permits with professional guidance.