When an Indonesian PT PMA (Foreign-Owned Company) decides to hire foreign expertise, the first priority often shifts to the expat’s visa documents—passport, CV, and diploma. However, the most frequent reason for work permit rejection isn’t the expat; it’s the sponsor company’s own legal health.

Before the Ministry of Manpower (MoM) approves the RPTKA (Expatriate Manpower Plan), they audit the sponsoring company. If the sponsor fails this audit, the entire process stops.

Here are the three non-negotiable legal prerequisites your PT PMA must meet to successfully hire foreign talent in Indonesia.

Prerequisite #1: Paid-Up Capital Compliance (The Financial Test)

The foundation of your eligibility is financial strength. Indonesian law requires PT PMAs to meet a certain minimum paid-up capital requirement (typically IDR 10 billion or its equivalent).

• The MoM Audit: The Ministry of Manpower verifies that the capital listed in your latest corporate deed and Ministry of Law and Human Rights approval is fully paid-up and meets the minimum threshold for sponsoring foreign workers.
• The Risk: If your company’s documents reflect a commitment to a large capital but do not legally show the paid-up status, your RPTKA application will be immediately rejected. This signals that your company lacks the financial capability to sustain a foreign worker’s salary and operational costs.

Prerequisite #2: Valid Investment Realization (The Activity Test)

The government needs assurance that your company is a genuinely active investor, not a mere paper entity. This is validated through your Investment Activity Report (LKPM).

• The MoM Audit: If your company is past its initial establishment phase, the MoM checks the OSS system to confirm that your LKPM reports are up-to-date and accurately reflect investment realization (CAPEX, hiring, production).
• The Risk: An inaccurate or missing LKPM report signals a lack of serious commitment or business activity. The MoM will reject the application, arguing that if the company is not actively realizing its investment, there is no justification for hiring foreign expertise.

Prerequisite #3: Local Counterpart and Knowledge Transfer Plan

Hiring an expat is viewed as a temporary measure to fill a skill gap while simultaneously developing local talent.

• The MoM Audit: When submitting the RPTKA, the company must provide a structured Knowledge Transfer Plan detailing how the foreign worker will train a named Indonesian counterpart. The plan must be specific and demonstrate a commitment to local development.
• The Risk: Submitting a vague, boilerplate plan or failing to name a suitable local counterpart violates the core principle of using foreign labor. This often leads to requests for clarification or outright rejection, delaying the expat’s entry.

Accura: Your Partner for a Seamless Sponsor Readiness Audit

Navigating these three prerequisites requires specialized knowledge that bridges corporate secretarial compliance (capital and LKPM) with immigration requirements. Failing to audit your company first means facing rejections, delays, and lost time.

Accura starts every work permit case with a Sponsor Readiness Audit. We eliminate uncertainty by:

1. Verifying Corporate Health: We check your current capital status, NIB, and corporate deeds to ensure they meet MoM requirements.
2. LKPM Compliance: We ensure your investment reports are current and accurate, proving your active status.
3. Strategic Planning: We assist in drafting a compliant and structured Knowledge Transfer Plan that satisfies regulatory demands.

Don’t risk the future of your foreign talent—or the potential for sanctions. Partner with Accura to ensure your company is legally eligible before you even begin the application.