Every foreign investor knows they need a Rencana Penggunaan Tenaga Kerja Asing (RPTKA) to hire an expatriate in Indonesia. However, many fail to realize that the Ministry of Manpower (MOM) won’t simply grant the RPTKA based on paperwork.
Before the MOM grants permission, your company must pass a crucial, unwritten step: The Sponsor Readiness Audit. This audit verifies that your PT PMA is financially and legally sound enough to be a credible sponsor. Failure here results in immediate rejection, costing you months of delay.
Here are the three essential pillars the MOM audits:
Pillar 1: Paid-Up Capital Verification
The MOM ensures your company is serious about its commitment. The minimum investment for a PT PMA is IDR 10 Billion (approx. USD $640K), and the MOM must see evidence that this commitment is being realized.
- The Audit Check: MOM verifies that your paid-up capital aligns with the requirements of your chosen business classification (KBLI). If your books or official reports do not reflect the required financial realization, your RPTKA application will be immediately blocked.
- The Risk: Many investors assume they can deal with capital issues later. The MOM says, “No proof of capital realization, no expat visa.”
Pillar 2: Location Compliance Check
Your business address is not just for mail—it’s a legal compliance statement.
- The Audit Check: The MOM verifies the address listed on your NIB and Tax ID (NPWP) is in a legally commercial zone.
- The Risk: Submitting an RPTKA while registered at a residential address (e.g., a home or non-commercial virtual office) will result in a quick rejection. The government requires commercial activity to be conducted in a designated commercial space.
Pillar 3: Local Employment Ratio
Indonesia’s expat laws exist to transfer skills, not displace local workers.
- The Audit Check: The MOM reviews your company’s existing local workforce. They require a demonstrable commitment to hiring Indonesian staff relative to the number of expatriates being requested.
- The Risk: If your company cannot show a structure that includes supporting local staff, the MOM may deny the RPTKA, arguing that the expat is simply filling a role an Indonesian could occupy.
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The Sponsor Readiness Audit is non-negotiable, and a failed attempt often causes delays that last for months.
Don’t let capital, address, or administrative gaps derail your expat hiring plan. Accura specializes in pre-emptive compliance. We perform a rigorous Pre-RPTKA Audit against all three MOM pillars, guaranteeing your company is ready before we submit the application.
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