Cross-Border Remote Work FAQs Indonesia

Assume that a foreign national employee of a foreign company wishes to work remotely for a period of time in your country performing services exclusively for the foreign company and not interacting with the local market in your country.

Work authorisation

A. Is work authorisation required? If so, please provide a brief description of the type of visa, procedure, processing time, etc.

Yes. A foreign national who intends to enter and stay in Indonesia to work remotely for a company established outside Indonesia must hold the appropriate visa. Under Article 8 (2) of Law No. 6 of 2011 on Immigration, every foreign national entering Indonesia is required to hold a valid visa, unless exempted under the applicable laws or international agreements.

For this purpose, the relevant visa category is the E33G Remote Worker Visa. Under the Attachment to Minister of Immigration and Corrections Decree No. M.IP-08.GR.01.01 of 2025 on Visa Classification (“MoIC Decree 08/2025”), E33G applies to a foreign national who has an employment relationship with a company outside Indonesia and performs his or her work in Indonesia. The E33G visa holder is permitted to carry out activities for the company outside Indonesia, enter and exit Indonesia while the re-entry permit remains valid, and carry out incidental activities such as tourism, purchasing goods, and visiting family or friends, subject to the applicable immigration requirements.

The application is submitted through the Indonesian immigration e-visa system. Based on the specific E33G requirements published by the Directorate General of Immigration on its official website (please refer to: https://www.imigrasi.go.id/wna/daftar-visa-indonesia/E33G), the supporting documents include, among others, a valid passport, a recent photograph, curriculum vitae, travel itinerary, proof of living expenses, a bank statement evidencing salary or income of, at least, USD60,000 per year, and an employment agreement with a company established outside Indonesia. The same official E33G requirements state that the processing time is five working days after the visa payment is received, and that the E33G visa is valid for entry into Indonesia for 90 days from the date of issuance. If the visa is not used within that period, the foreign national must apply for a new visa.

Risk of 'permanent establishment'

B. Is there risk of 'permanent establishment' consequences for the foreign company by virtue of the remote worker’s activities?  If so, what are the main factors determining the exposure.

Yes, but the mere presence of a remote worker in Indonesia should not automatically create a permanent establishment (“PE”), for the foreign employer. Under Article 2 (5) of Law No. 7 of 1983 on Income Tax, as last amended by Law No. 6 of 2023 (“Income Tax Law”), a PE may arise where a non-resident individual or entity uses a form of business to carry out business or activities in Indonesia. The relevant forms include, among others, a fixed place of business, a representative office, a place for promotion and sales activities, the furnishing of services by employees or other personnel for more than 60 days within a 12-month period, and a dependent agent. Minister of Finance Regulation No. 35/PMK.03/2019 further regulates the determination of PE, including fixed-place, service, and dependent-agent PE.

Accordingly, PE exposure in a remote-working arrangement would mainly depend on whether the worker’s activities remain limited to internal work for the foreign employer, or instead, create a business presence of that employer in Indonesia. Relevant factors include the use of a fixed or regular place in Indonesia for the employer’s business, continuous performance of services from Indonesia, services to Indonesian customers or for Indonesian business activities, authority to habitually represent or act for the employer in Indonesia, fulfilment of the service-activity threshold, and any relevant tax treaty criteria. If a PE is found to exist, the foreign employer may be subject to Indonesian tax obligations on income attributable to that PE.

Local social security and other payroll requirements

C. At what point and under what circumstances would the remote worker become subject to local social security and other payroll requirements?  Can such requirements be fulfilled by a foreign company, and if so by what mechanisms?

For social security, Indonesian law uses a six-month threshold for foreign nationals working in Indonesia. Under Article 14 of Law No. 24 of 2011 on the Social Security Agency (“SSA Law”), every person, including a foreign national who works in Indonesia for at least six months, must participate in the Indonesian social security programme. This programme is administered by the Social Security Agency (Badan Penyelenggara Jaminan Sosial or “BPJS”), consisting principally of BPJS Ketenagakerjaan, the employment-related social security, and BPJS Kesehatan, the health security. However, for a foreign remote worker who remains employed and paid solely by a foreign employer with no presence in Indonesia, the six-month threshold does not mean that the foreign employer can automatically register the worker with BPJS from offshore. In practice, BPJS registration and contribution payment would generally need to be administered through an Indonesian employer or another lawful local registration channel.

Furthermore, Indonesian payroll withholding is generally relevant where there is a party in Indonesia that pays, administers, or is otherwise required to withhold tax on the worker’s remuneration, such as an Indonesian employer, local payroll arrangement, or PE. If the worker remains employed and paid solely by a foreign employer with no Indonesian presence, the foreign employer would generally not have a direct Indonesian payroll withholding mechanism merely because the employee works remotely from Indonesia. Accordingly, if Indonesian BPJS or payroll compliance must be implemented, the practical route is not direct offshore registration by the foreign company, but the use of a lawful local structure, for example employment through an Indonesian entity, a local payroll arrangement, or another compliant local registration arrangement. That local party would administer BPJS registration, contributions, and any applicable withholding taxes.

Local employment law requirements

D. At what point and under what circumstances does the remote worker become subject to local employment law requirements such as is wage-hour, local holidays, annual leave, maternity leave, disability leave, protection against unfair dismissal, etc.

A foreign remote worker would not generally become subject to Indonesian employment law requirements merely because he or she works remotely from Indonesia for a foreign employer with no presence in Indonesia. Under Law No. 13 of 2003 on Manpower, as last amended by Law No. 6 of 2023, an employment relationship is based on an employment agreement and is characterised by the elements of work, wage, and order. Accordingly, if the worker remains employed solely by the foreign employer, is paid offshore, performs internal work for that foreign employer, and is not employed, supervised, paid, or administered through an Indonesian entity, Indonesian statutory employment entitlements should not automatically apply.

Indonesian employment law requirements are more likely to apply once the worker’s employment is connected to an Indonesian employer or business presence, for example if the worker is employed, supervised, paid, or administered through an Indonesian entity, or if the worker’s role is carried out for Indonesian business activities rather than only for the foreign employer’s offshore operations. In that situation, the worker may become subject to local employment protections, including rules on working time, rest periods, public holidays, leave entitlements, wages, social security, occupational safety and health, and termination protection.

Remote foreign worker

E. Are there special requirements governing remote work in your country which would cover the remote foreign worker?

Indonesia does not have a specific manpower law regime governing foreign nationals who work remotely from Indonesia for a foreign employer and do not interact with the Indonesian market. Accordingly, where the worker remains employed by the foreign employer, performs internal work only for that employer, and is not employed, supervised, paid, or administered through an Indonesian entity, no special Indonesian employment-law requirements apply because the work is performed remotely from Indonesia.

However, the arrangement remains subject to Indonesian immigration requirements. As noted above, the relevant visa category is the E33G Remote Worker Visa, which applies to a foreign national who has an employment relationship with a company outside Indonesia and performs his or her work in Indonesia. The worker must, therefore, ensure that his or her activities in Indonesia remain consistent with the purpose and scope of the relevant visa and stay permit.

Income tax

F. What is the employee’s exposure to local income tax, and under what circumstances is the foreign employer required to arrange for withholding of income tax?

The employee may be exposed to Indonesian income tax if he or she becomes an Indonesian tax resident or receives Indonesian-sourced income. Under Article 2 (3) of Income Tax Law, an individual is generally treated as an Indonesian tax resident if he or she resides in Indonesia, is present in Indonesia for more than 183 days within a 12-month period, or is present in Indonesia during a tax year and intends to reside in Indonesia. Minister of Finance Regulation No. 18/PMK.03/2021 further clarifies that the intention to reside in Indonesia may be evidenced by, among others, a permanent stay permit, a limited stay visa or permit valid for more than 183 days, or a contract or agreement showing that the relevant work, business, or activity will be carried out in Indonesia for more than 183 days. Accordingly, an employment agreement with a foreign employer does not, by itself, determine the worker’s Indonesian tax position. The relevant issue is whether the worker meets the Indonesian tax residency criteria or otherwise receives Indonesian-sourced income. Once the remote worker becomes an Indonesian tax resident, his or her employment income may be subject to Indonesian income tax, subject to any applicable tax treaty.

A foreign employer would generally be required to withhold Indonesian income tax only if it has a taxable presence or payroll arrangement in Indonesia through which the employee’s remuneration is paid or administered, such as a permanent establishment, Indonesian entity, or local payroll arrangement. If the employee remains employed and paid solely by a foreign employer with no presence or payroll arrangement in Indonesia, the foreign employer would generally not have an Indonesian withholding obligation or a practical mechanism to withhold Indonesian income tax. However, the employee may still have personal tax registration, payment, and reporting obligations in Indonesia if he or she becomes an Indonesian tax resident.

Claim for workplace injury

G. Would the remote worker be entitled to bring a claim for workplace injury in your country?

Generally, no, if the remote worker remains employed solely by a foreign employer with no office, entity, or employer registration in Indonesia. In that scenario, the worker would generally not be covered by the Indonesian employment social security programme administered by BPJS Ketenagakerjaan. Therefore, he or she would not have a statutory workplace injury claim under the Indonesian employment social security framework. Any workplace injury claim would primarily need to be addressed under the employment arrangement with the foreign employer and the law governing that employment relationship.

Separately, if the injury occurs in Indonesia and is caused by the fault or negligence of a third party, the worker may still bring a general civil claim in Indonesia against that third party, for example under Article 1365 of the Indonesian Civil Code. However, this would be a tort claim arising from the third party’s fault, not a statutory workplace injury claim against the foreign employer under Indonesian employment law or BPJS Ketenagakerjaan.

National healthcare system or insurance

H. Would the remote worker be covered under the local national healthcare system or insurance?

Not automatically. Indonesia’s national healthcare programme is administered by BPJS Kesehatan as part of the Indonesian social security system. Under Article 14 of SSA Law, foreign nationals who work in Indonesia for at least six months are required to participate in the Indonesian social security programme. More specifically for healthcare, Presidential Regulation No. 82 of 2018 on Health Security, as last amended by Presidential Regulation No. 59 of 2024, provides that participants in the health security programme include foreign nationals who work in Indonesia for at least six months and have paid the relevant healthcare contributions.

Accordingly, a foreign remote worker is not covered by BPJS Kesehatan merely because he or she is physically working from Indonesia. Coverage would require proper participation and payment of contributions under the applicable BPJS Kesehatan mechanism. In a pure remote-working arrangement where the worker remains employed and paid solely by a foreign employer with no Indonesian presence, BPJS Kesehatan coverage should not be assumed to arise through the foreign employer. As a practical matter, the worker should verify the applicable BPJS Kesehatan registration route and maintain private or international health insurance covering his or her stay and remote-working activities in Indonesia.

Data privacy and security

I. Is a foreign employer subject to data privacy and security requirements regarding protection of employee personal information for a foreign employee working remotely in your country?

Not automatically. A foreign employer is not subject to Indonesian data privacy and security requirements merely because its foreign employee is temporarily working remotely from Indonesia. Under Article 2 of Law No. 27 of 2022 on Personal Data Protection (“PDP Law”), the PDP Law applies to the legal acts regulated under the PDP Law, whether conducted within or outside Indonesia, if they have legal consequences in Indonesia or for Indonesian citizens outside Indonesia.

Accordingly, the relevant issue is whether the employer’s collection, use, monitoring, storage, disclosure, or transfer of the employee’s personal data in connection with the remote-working arrangement has legal consequences in Indonesia. If so, the foreign employer may need to comply with the relevant PDP Law requirements, including lawful and transparent processing, data security and confidentiality, and any applicable cross-border transfer requirements. If the employee data is processed entirely offshore for an offshore employment relationship and without legal consequences in Indonesia, the PDP Law should not be assumed to apply merely because the employee is physically located in Indonesia.

Foreign remote worker

J. Has there been any litigation or specific law or regulation regarding the foreign remote worker in your country?

We are not aware of any significant, reported, Indonesian court litigation, specifically concerning foreign remote workers who work from Indonesia exclusively for foreign employers and do not interact with the Indonesian market. However, Indonesia does recognise a specific immigration category for foreign remote workers. Under the Attachment to MoIC Decree 08/2025, the E33G visa category covers “remote workers” in an employment relationship with a company not domiciled in Indonesia, and applies to foreign nationals who have an employment relationship with a company outside Indonesia and perform their work in Indonesia.

The Directorate General of Immigration also maintains a specific official page for the E33G Visa, including its requirements, procedure, and conditions. However, this is an immigration framework, not a comprehensive employment-law regime for foreign remote workers. Apart from this immigration framework, Indonesia does not currently have a specific employment-law regulation governing foreign remote workers who work from Indonesia solely for foreign employers without interacting with the Indonesian market.

Citizenship

K. Would any of the above answers change if the remote worker (a) is a citizen of your country, or (b) engages in activity interacting with the local market?

Yes, the answers may change as follows:

a. If the remote worker is an Indonesian citizen

An Indonesian citizen does not require a visa or work authorisation to work from Indonesia. However, Indonesian citizenship alone does not automatically make the foreign employer subject to Indonesian employment, payroll, or social security requirements. It would depend on the actual structure of the arrangement, including whether the worker is employed, paid, supervised, or administered through an Indonesian entity or local payroll arrangement. If such a local structure exists, Indonesian employment law, payroll withholding, BPJS, and related employee protection requirements are more likely to apply.

b. If the remote worker engages with the Indonesian market

The legal position would change more materially if the worker, whether Indonesian or foreigner, engages with the Indonesian market. This may include soliciting Indonesian customers, providing services to Indonesian clients, negotiating or concluding contracts in Indonesia, representing the foreign employer in Indonesia, or otherwise supporting Indonesian business activities. In that case, the arrangement may no longer be treated as a pure remote-working arrangement for an offshore employer and may increase Indonesian immigration, permanent establishment, tax, payroll, social security, employment-law, business licensing, and data protection risks. The arrangement should be reviewed, before the relevant Indonesian-facing activities are carried out.