Work Permits in Bali: The Must-Know Rules for Employers & Foreign Workers (2025 Guide)

Bali has become a global hotspot for foreign professionals, entrepreneurs, and remote workers, attracting individuals who wish to live and work in its vibrant business environment. However, securing legal work permits in Bali is a critical step to ensure compliance with Indonesian regulations. Without the proper work permits in Bali, foreign workers and their employers risk facing hefty fines, deportation, or even forced business shutdowns.

For any foreigner looking to work legally, obtaining the correct work permits in Bali is not just a formality—it’s a legal necessity. Indonesian immigration and labor laws strictly regulate foreign employment to protect local job opportunities while allowing businesses to hire skilled international talent when needed. Companies must adhere to sponsorship requirements and specific work permit categories to ensure smooth operations.

In this guide, we’ll break down everything employers and foreign workers need to know about work permits in Bali, including legal requirements, company sponsorship, step-by-step application processes, costs, and common mistakes to avoid. By understanding the ins and outs of work permits in Bali, businesses and employees can operate legally and confidently in one of Indonesia’s most dynamic business landscapes.

Why Are Work Permits in Bali Important?

Indonesia enforces strict regulations regarding foreign employment to protect the local labor market and ensure that job opportunities are fairly distributed. For any foreign professional, securing the correct work permits in Bali is mandatory before engaging in any form of employment. Whether you are an employee, investor, consultant, or freelancer operating under a registered company, work permits in Bali are required to work legally and avoid serious legal consequences.

Without the proper work permits in Bali, foreign workers and their employers risk facing severe penalties, including financial fines, deportation, and even blacklisting from re-entering Indonesia. The Indonesian government takes labor law compliance seriously, and failing to secure the necessary documentation can lead to costly legal repercussions for businesses as well.

What Happens If You Work Without a Permit?

• Immigration fines of up to IDR 500 million for illegal employment.
• Immediate deportation and blacklisting from Indonesia, preventing future entry.
• Legal action against both the employer and the foreign worker, potentially leading to business closure.

By ensuring that all foreign employees have the proper work permits in Bali, businesses can operate smoothly without the risk of legal issues. Compliance with immigration and labor laws should be a top priority for any company looking to hire foreign talent, as failure to meet regulations can lead to disruptions in business operations, loss of reputation, and financial burdens.

To protect both businesses and employees, securing the correct work permits in Bali is not just a recommendation—it is a legal requirement that must be followed to ensure a safe and lawful working environment.

Who Needs a Work Permit in Bali?

For any foreigner planning to work in Indonesia, obtaining the correct work permits in Bali is essential to comply with immigration laws and avoid legal issues. The Indonesian government has strict regulations regarding foreign employment, and failure to secure a valid work permit in Bali can lead to heavy fines, deportation, and blacklisting.

• Foreigners must have a work permit in Bali if they:
• Are employed by an Indonesian company in any official capacity.
  Hold a managerial, executive, or specialist position within a business.
• Work as an investor who is actively involved in the company’s daily operations.
• Need to sign contracts, oversee projects, manage employees, or conduct business meetings regularly.
• Are professional consultants, trainers, or skilled workers providing expertise to Indonesian businesses.

If you fall under any of these categories, securing the right work permit in Bali should be your top priority before starting any professional activity. Employers must also ensure that they sponsor their foreign workers’ legal status to avoid compliance risks.

Who Does NOT Need a Work Permit in Bali?

While many foreign professionals require work permits in Bali, some exceptions exist. However, even if a work permit is not required, foreigners must still ensure they have the appropriate visa or stay permit to remain compliant with Indonesian immigration laws.

1. Digital Nomads Working Remotely for Clients Outside Indonesia

Foreigners who work remotely for companies or clients based outside Indonesia do not need work permits in Bali, as long as they do not engage in any local business activities, employment, or service provision within Indonesia. However, they still need the correct visa to stay legally in the country. The best options for digital nomads include:

• Tourist Visa (B211A Social-Cultural Visa) – Allows stays of up to 60 days, extendable up to 180 days.
• Second Home Visa – A long-term option for those who meet financial requirements (minimum IDR 2 billion in a local bank account).
• Visa on Arrival (VoA) – Valid for 30 days and extendable for another 30 days, but not suitable for long-term stays.

2. Tourists or Visitors on a Social or Business Visa

Foreigners visiting Bali for leisure, family visits, or limited business activities (such as networking or attending non-paid business meetings) do not require work permits in Bali. However, they must have a visa that aligns with their purpose of stay, such as:

• Tourist Visa (B211A Social-Cultural Visa) – Suitable for tourists and those visiting family.
• Business Visa (B211A Business Visa) – Allows attending meetings, training, or business negotiations but does NOT permit paid work in Indonesia.
• Visa on Arrival (VoA) – Ideal for short-term visitors but limited to tourism and basic business activities.

3. Attendees of Conferences, Networking Events, or Seminars

Foreigners who come to Bali to attend professional events, such as conferences or business networking meetings, do not require work permits in Bali as long as they are not officially employed by an Indonesian company or receiving payments from an Indonesia-based entity. Instead, they should apply for:

• Business Visa (B211A Business Visa) – Allows participation in seminars, training sessions, and business negotiations.
• Visa on Arrival (VoA) – Permissible for attending short-term networking events but does not allow business transactions or service provision.

Even though these individuals do not need work permits in Bali, they must be cautious about their activities. Engaging in unauthorized work, signing contracts, or earning income from Indonesian sources without a valid work permit can still lead to legal consequences, including fines, deportation, or visa revocation. Always ensure you have the correct visa or permit for your specific purpose in Bali.

It is important to note that even if you are a remote worker or business visitor, engaging in unauthorized work activities without a valid work permit in Bali can still lead to legal trouble. The best way to ensure compliance is to fully understand Indonesian labor laws and apply for the correct permits based on your work situation.

How Can a Company Sponsor a Work Permit in Bali?

For a foreigner to legally work in Bali, an Indonesian-registered company must sponsor their work permit in Bali. This is a mandatory requirement set by the Indonesian government to regulate foreign employment and ensure compliance with local labor laws. Only certain types of companies, such as a PT PMA (foreign-owned company) or a local PT company, are eligible to sponsor foreign workers. The process involves multiple steps, including obtaining government approvals, fulfilling financial obligations, and ensuring compliance with immigration laws.

Here’s how the process works:

Step 1: Ensure the Company Meets Legal Requirements

Before a company can sponsor a work permit in Bali, it must meet specific legal and financial criteria. A PT PMA (foreign-owned company) or a local PT (Indonesian-owned company) must:
✔ Have a minimum paid-up capital of IDR 10 billion (for a PT PMA).
✔ Be registered in a business sector that allows foreign workers, as not all industries are open to expatriates.
✔ Obtain a Business Identification Number (NIB) from the Online Single Submission (OSS) system.
✔ Register with the Ministry of Manpower (Kementerian Ketenagakerjaan) for foreign worker sponsorship approval.

Failing to meet these legal requirements can result in the rejection of the work permit in Bali, delaying the employment process for foreign professionals.

Step 2: Submit the Foreign Worker Utilization Plan (RPTKA)

The next crucial step is obtaining the RPTKA (Rencana Penggunaan Tenaga Kerja Asing), which is an official document required before hiring foreign employees. The RPTKA approval ensures that the company is authorized to employ expatriates and that the foreign worker’s role cannot be filled by a local professional. The company must submit details such as:

• The necessity of hiring a foreign worker and justification for their role.
• The job position, responsibilities, and required qualifications.
• The duration of employment and whether the contract is extendable.
• A commitment to hire and train Indonesian employees as part of knowledge transfer obligations.

The RPTKA approval is granted by the Ministry of Manpower, and without it, a company cannot proceed with obtaining a work permit in Bali.

Step 3: Apply for the Work Permit (IMTA & KITAS)

Once the RPTKA is approved, the company can apply for the official work permit in Bali, which includes two key documents:

📌 IMTA (Izin Mempekerjakan Tenaga Kerja Asing) – This is the official work permit issued by the Ministry of Manpower, authorizing the foreign employee to work legally in Indonesia.
📌 KITAS (Limited Stay Permit) – This is the residence permit that allows the foreign worker to stay in Indonesia while working under a valid work permit in Bali.

The IMTA and KITAS must always match the foreign worker’s job title and employer. If a foreign employee switches companies, they must obtain a new work permit in Bali under their new sponsor.

Step 4: Pay the DPKK Fee (Foreign Worker Compensation Fund)

Under Indonesian law, companies hiring foreign workers must contribute to the DPKK (Dana Pengembangan Keahlian dan Keterampilan), a government-mandated Foreign Worker Compensation Fund. The company is required to pay a fee of USD 100 per month per foreign employee, which helps fund skills development programs for Indonesian workers.

Additional Considerations for Work Permit in Bali Sponsorship

• Companies must ensure that the foreign worker’s qualifications match the job role stated in the RPTKA application.
• Certain job positions are restricted for foreign workers, including HR, legal, and supply chain management roles.
• The validity of the work permit in Bali varies, typically issued for 6 months to 1 year with the option for renewal.
• Companies must monitor compliance with immigration and labor laws to avoid penalties.

Failing to follow these steps can lead to serious legal consequences, including the revocation of the work permit in Bali, fines, or business restrictions. To ensure smooth processing, businesses should work with experienced legal and visa consultants who specialize in foreign worker sponsorship in Indonesia.

Types of Work Permits in Bali

There are different types of work permits in Bali, depending on the nature of employment:

✅ Investor KITAS – For company owners actively involved in the business.
✅ Work KITAS – For employees hired by an Indonesian-registered company.
✅ Freelancer KITAS (Not Available) – Freelancing is not legally recognized under current work permit regulations.

How Long Does It Take to Get a Work Permit in Bali?

The processing time for work permits in Bali varies:

⏳ RPTKA Approval: 7-14 business days.
⏳ IMTA (Work Permit): 7-10 business days.
⏳ KITAS (Stay Permit): 10-14 business days.

In total, expect the process to take 4-6 weeks.

Work Permit Costs & Employer Obligations

Companies sponsoring work permits in Bali must cover various costs, including:

💰 RPTKA & IMTA Fees – Government processing fees.
💰 DPKK Contribution – USD 100/month per foreign employee.
💰 Agency Fees – If using a legal consultant for smooth processing.

Employers must also ensure:
✔️ Foreign workers receive a minimum salary as per government regulations.
✔️ All taxes and social security (BPJS) contributions are paid.

Common Work Permits Mistakes to Avoid

Securing work permits in Bali is a crucial step for foreign professionals and businesses hiring expatriates. However, many people make costly mistakes that can lead to legal trouble, fines, or even deportation. To ensure compliance, here are some of the most common work permits in Bali mistakes to avoid:

• Working in Bali without a legal permit – Any foreigner working without valid work permits in Bali is violating Indonesian immigration laws, which can result in hefty fines, deportation, or even blacklisting.
• Applying for the wrong type of KITAS – Not all KITAS are the same. Work permits in Bali require a KITAS specifically issued for employment, not a retirement, spouse, or investor KITAS. Using the wrong visa can cause serious legal issues.
• Failing to pay DPKK fees on time – Companies hiring foreign employees must pay USD 100 per month per worker to the Foreign Worker Compensation Fund (DPKK). Delays or missed payments can result in work permits suspension.
• Using a tourist or business visa for work-related activities – A tourist visa or business visa does not grant permission to work in Indonesia. Foreigners caught engaging in work activities without proper work permits in Bali risk legal action.

To avoid these mistakes and ensure a smooth application process, work with trusted legal experts who specialize in securing work permits in Bali and stay compliant with Indonesian regulations.

How Can Employers Ensure a Smooth Work Permits Process?

For businesses hiring foreign professionals, securing work permits in Bali is a crucial step to ensure legal compliance and avoid unnecessary delays. A well-planned process helps employers streamline hiring while avoiding penalties. Here’s how companies can ensure a smooth work permits in Bali application:

📌 Work with a professional consultant for compliance – Navigating Indonesian immigration laws can be complex. A legal expert specializing in work permits in Bali can help businesses meet all requirements and avoid costly mistakes.

📌 Plan ahead—apply at least 2 months before the start date – The work permits in Bali application process involves multiple steps, including RPTKA approval, IMTA issuance, and KITAS processing. Starting early ensures there’s enough time to complete every stage without delays.

📌 Keep track of expiration dates and renewals – Work permits in Bali are only valid for a set period, typically 6 to 12 months. Employers must monitor renewal deadlines to avoid expiration, which could result in legal consequences for both the company and the foreign employee.

By following these steps, companies can successfully hire and retain foreign talent while staying compliant with Indonesian regulations. A smooth work permits in Bali process not only protects the business but also ensures a hassle-free experience for international employees.

Conclusion

Navigating work permits in Bali can be complex, but it’s a necessary step for businesses hiring foreign professionals. Employers must comply with legal requirements, secure proper sponsorship, and manage work permit renewals to avoid penalties.

🔎 Need help securing work permits in Bali for your foreign employees? Contact SynergyPro today for expert assistance in legal compliance and business setup in Indonesia.