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**marcus** · 01-10-22, 17:52

Originally posted by Hawkwind View Post

...am I allowed by law to work for this side business, especially as I will be paying tax to the government...

According to the PerMen no.10 Year 2018 (see below) , it depends . And if you are eligible , I understand that the new employer will have to get a new foreigner's work authorization from the Manpower Department , to hire you .

Note : You better check other details and if this Regulation is still valid (maybe at https://tka-online.kemnaker.go.id/) .

Tax is another subject with its specific Law .

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PERATURAN MENTERI KETENAGAKERJAAN No.10 TAHUN 2018 (Manpower Minister's Regulation)

Article 8 (not an official translation)
(1) Employers can employ a foreign worker who is already employed by other employer but only in the following positions:
a. Director or Commissioner who is not a shareholder; or
b. In the following sectors : vocational education and training , the digital economy , and the oil & gas for cooperation contracts.
(2) For the employer to employ the foreigner as referred to in paragraph (1) above , the foreigner must obtain approval from the first employer.
(3) Each employer as referred to in paragraph (1) above must have RPTKA/"Plan to Employ Foreigners" and pay the Government the DKP-TKA (tax for employing foreigner) .
(4) The foreign worker as referred to in paragraph (1) above is employed at the latest until the end of the working period authorized for the first employer.

**marcus** · 01-10-22, 22:28

There is a newer Regulation which more or less states the same .

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PERATURAN MENTERI KETENAGAKERJAAN NO.8 TAHUN 2021
Article 5 (not an official translation)
(1) Employers can employ foreign worker who is already employed by other employer but only in the following positions :
a. Directors or Commissioners;
b. In the Vocational Education and Vocational Training sector;
c. In the digital economy sector; or
d. In the oil and gas sector for cooperation contracts .
(2) For a employer to employ the foreigner as referred to in paragraph (1) above , each employer must have the ratification of the RPTKA.
(3) Each employer as referred to in paragraph (2) above submits an application for an online ratification of the RPTKA to the Director General or Director after the foreign worker received approval from the first employer.
(4) The end of the period to employ the foreign worker for the application for ratification of the RPTKA as referred to in paragraph (3) above have to be up to the end of the period stated in the ratification of the first employer's RPTKA.

**Hawkwind** · 09-02-23, 12:12

Ok, bit of an update here

So I`m now on a wife-sponsored KITAP, I`m still with my original company and they pay for my work permit IMTA

Maybe my initial statement was not clear, I don't wish to work for the other company, I`m merely a consultant offering a service for a fee.

My question was, is that legal, as the law states I can work to support my family under KITAP, the IMTA is clear with my main company, but will I get in trouble for the side business?

I have a friend in Manpower who said it's no problem to receive payment and pay tax, but I`m getting mixed messages and obviously do not want to get into any trouble or get possibly deported!

Any advice or suggestions are gratefully appreciated

Alan

**marcus** · 09-02-23, 20:15

Originally posted by Hawkwind View Post

(i) So I`m now on a wife-sponsored KITAP...My question was, is that legal, as the law states I can work to support my family under KITAP...

(ii) I don't wish to work for the other company, I`m merely a consultant offering a service for a fee...

(i) This changes a little , assuming you mean your wife is Indonesian . Foreign spouses holding KITAS or KITAP sponsored by the Indonesian spouses have the right to work & do business according to Article 61 of the UU no.6 of 2011 . But because there is no Regulation to implement this Law's Article , we have been interpreting it from a recorded verbal information given by Manpower Department , which basically means that for an informal work no work permit is necessary but for formal work you have to add a work permit (see copy of that below) .

So , in my view , I think you may fit into the Manpower's idea if you do the consultant work as an informal work , for example , for your Indonesian wife's (to be created?) small business (your wife's business would pay income tax , not you , which by the way is advantageous to you) .

(ii) In my view , doing consultation is work and so subjected to the Manpower Law & Regulations I mentioned earlier .

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(free translation from http://percaindonesia.com/catatan-so...-7-maret-2015/ about acceptable work situations for foreigners married with Indonesians stated by Manpower Department's officers)
[.....
A) Holders of KITAS/KITAP sponsored by spouse are allowed to work in the (PT) companies with Work Permit (IMTA) .
B) Foreigner workers cannot work in two different companies (the same profession or different) EXCEPT investor / commissioner of PT PMA (If one works in three companies , the number of IMTA must also be 3).
C) If the activities of the foreign worker are in more than 1 place / province then he/she must have inter-provincial IMTA .
D) Case: Husband / wife of a mixed marriage with cuisine chef background want to open a small café, with a small seating area is classified as a small business and does not require IMTA. When this business grows crowded and large, than it is necessary to have operating permits from the relevant authorities . When the businesses becomes a legal entity, then this foreign worker must have IMTA.
E) Case: Foreign husband of a mixed marriage is already retired. Enters Indonesia with Visa-On-Arrival and becomes an investor in a hotel in Bali. Once in a while he does work behind the scenes such as checks on the financial control department. With such conditions, it means the husband has been conducting work in Indonesia and must have KITAS and IMTA, because even not all the time he is working .
F) A foreigner in a mixed marriage with KITAS/KITAP sponsored by Indonesian wife. Working from home and having online businesses. Does not have an office and legal business such as PT or PT PMA. Because this foreigner is conducting work even though he only works online so this foreigner must have the IMTA. This foreigner also cannot sign work contracts in Indonesia on behalf of himself .
G) A foreigner who works and own business as an acupuncturist, must obtain an official recommendation from the local health office before doing business and work activities. If already have a recommendation from the relevant authorities, the foreign must have the IMTA to be able to work in Indonesia .
H) A foreigner holder of KITAS/KITAP sponsored by spouse is allowed to work in Indonesia. The need of IMTA is to be seen from what the job, working for a legal entity or not, small or large business .

CONCLUSION:

Although the Immigration Law no.6 of 2011 Article 61 states that the holder of a KITAS/KITAP sponsored by Indonesian spouse can work and/or do business to make ends meet for him/her and/ for his/her family, but still has to refer back to the Labour Law no.13 year 2003 and Permenakertrans no.12 year 2013, which essentially mean that a foreign worker in a mixed marriage is allowed to work without a work permit/IMTA if in the informal sector, freelance or have a small business which is not a legal entity. When working in a legal entity then MUST have IMTA.]

Note : IMTA = work permit

**Miabright** · 25-07-23, 17:33

I'd also like to run a business. I have an office job, but I'm not sure about the regulations. Is it better to quit my job and become a business owner?

**marcus** · 26-07-23, 09:41

Assuming you are a foreigner but not married with an Indonesian , the Regulation about working for 2 different businesses is the one stated in post no.3 above .
There is/are other Regulation(s) regarding owning Indonesian business , which I don't have a copy to offer . But basically , foreigners can own only business of the PT PMA's type , which owned alone is a minimum Rp10 billion business or a minimum of Rp1 billion investment if a PT PMA shared with others .

**Steven Mangle** · 01-08-23, 20:37

Originally posted by Miabright View Post

I'd also like to run a business. I have an office job, but I'm not sure about the regulations. Is it better to quit my job and become a business owner?

Depends highly on your skills.
Deciding to quit your office job and become a business owner is a significant choice. Consider regulations, financial security, passion, commitment, and risk tolerance. Weigh the pros and cons carefully before making the decision.

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