Indonesia on Alert Over Illegal Foreign Worker Schemes as Key Culprits Exposed

Jakarta, CNBC Indonesia — The National Research and Innovation Agency (BRIN) has revealed a gap between the permits and actual practices of foreign workers (TKA) in Indonesia.

Consequently, oversight of foreign workers should not rigidly focus only on the completeness of documentation, but must also ensure that the permits held match the work and activities carried out in the field in accordance with prevailing regulations.

BRIN highlighted that cases involving foreign workers in Indonesia remain numerous.

Al Araf Assadallah Marzuki, a researcher at BRIN’s Legal Research Centre, said that complete documentation does not automatically indicate that the employment of foreign workers complies with the rules.

“In practice, foreign workers can be found who have a sponsoring company, residence permits and employment documents, yet carry out activities that do not match what is stated in those documents,” he said, quoted from BRIN’s official website on Tuesday (15/8/2026).

“Their entry is legal, but their activities are not necessarily legal,” Al Araf added.

He highlighted the practice of foreigners entering Indonesia legally but then carrying out activities that do not correspond to the purpose of their permits.

Therefore, he stressed, the use of a visit visa does not in itself indicate a violation. The issue is whether the purpose of the permit matches the activities carried out.

“It is not merely a matter of whether a permit exists or not, but whether the activities undertaken genuinely match that permit,” he said.

“One example is the use of a visit permit that is then used for working,” he added.

According to Al Araf, the foreign worker issue also does not stand alone within the context of employment law. The use of foreign workers intersects with immigration, investment and corporate law.

“Therefore, oversight needs to cover not only the foreign workers themselves, but also those who recruit them, act as sponsors, process their documents and control the companies,” he said.

“The permits may indeed be complete. But more often than not, the valid permit exists only on paper and does not reflect reality,” he said.

Sanctions Await Foreign Workers and Employers

Quoted from the same source, Moch Nicodiemoz Priastomo, a manpower inspector at the Directorate for the Development of Labour Norms Inspection at the Ministry of Manpower, said that employers of foreign workers bear a number of obligations. These include obtaining approval of a Foreign Manpower Utilisation Plan (RPTKA) and employing foreign workers in accordance with that approval.

“Foreign workers are employed for specific positions, durations and competencies. However, field inspections still find a gap between permit administration and the actual working conditions,” he explained.

Nicodiemoz gave the example of a foreign worker whose documents listed the position of financial advisor, but who was found in practice working as a chef. In another case, he said, a foreign worker permitted as a mechanical engineer was in fact working in an unskilled role.

“This shows the gap between permit administration and the reality on the ground is wide,” he said.

Therefore, Nicodiemoz stressed, in addition to ensuring the job matches the permit, employers of foreign workers are obliged to provide education and training for the Indonesian companion workers assigned to them. This requirement forms part of the technology and skills transfer process.

“However, inspections still find companions who are listed only administratively to meet requirements, without genuinely carrying out their companion function,” he said.

“There are even companions who do not know the foreign worker they are supposed to accompany, or are unaware that they have been appointed as companions. There are also cases where the companion’s competencies do not match the foreign worker’s field of work,” he elaborated.

To ensure compliance with labour regulations, he continued, oversight is carried out through inspections and the issuance of inspection notes based on findings and the type of violation.

“These notes contain recommended actions to remedy non-compliance,” he said.

“If a company fails to make improvements after being warned, the process can proceed to administrative sanctions and even judicial action where criminal elements are present,” Nicodiemoz said.

Meanwhile, for foreign workers found without an approved Foreign Manpower Utilisation Plan (RPTKA), he continued, manpower inspectors are authorised to take immediate action by removing the foreign worker from the workplace, as well as prohibiting the employer from continuing to employ them.

“This is an immediate measure that manpower inspectors can take when, during an inspection, they find a foreign worker without RPTKA approval,” Nicodiemoz said.