Sponsor for KITAS in 2025: Ultimate Employer Guide and What If Your Sponsor Fails

Introduction

Foreign professionals are an important driving force behind the growth of Bali, Lombok, and Sumbawa’s economies. They bring international expertise, innovation, and connections that help local businesses scale, attract global clients, and improve service quality. However, employing foreign talent in Indonesia is not as simple as signing a contract and bringing them on board. One of the most critical elements in this process is appointing a valid Sponsor for KITAS — the legal backbone that allows a foreign employee to obtain and maintain their stay permit and work authorization.

Without a valid and active Sponsor for KITAS, an expatriate cannot legally live or work in Indonesia. This sponsorship is not just a formality; it represents a company’s ongoing responsibility to comply with immigration and manpower regulations, pay the necessary levies, and ensure that the employee’s position is legally approved.

This article provides a comprehensive roadmap for employers who want to act as a reliable Sponsor for KITAS. It covers everything from the legal requirements and step-by-step application process to ongoing compliance obligations and what to do if the sponsor company becomes dormant, bankrupt, or ceases operations. By understanding the responsibilities and risks involved, businesses can protect themselves and their foreign employees from costly legal issues and sudden disruptions.

Legal & Regulatory Basis

Indonesia’s immigration and manpower laws are clear: any foreign employee who wishes to work legally must hold a valid KITAS (Kartu Izin Tinggal Terbatas – Limited Stay Permit) that is backed by a recognized Sponsor for KITAS. This sponsorship is not optional; it is a mandatory legal requirement under Law No. 6/2011 on Immigration and Law No. 13/2003 on Manpower (as amended by the Omnibus Law/Job Creation Law).

The process starts with the employer preparing an RPTKA (Rencana Penggunaan Tenaga Kerja Asing) — the Foreign Manpower Utilization Plan — which must be approved by the Ministry of Manpower. Once the RPTKA is approved, the company applies for a Notification, which effectively functions as the work permit (previously known as IMTA). With this Notification in hand, the company can then apply for a VITAS (Visa Tinggal Terbatas), which the foreign employee uses to enter Indonesia. After arrival, the VITAS is converted into an ITAS/KITAS, the limited stay permit.

To act as a Sponsor for KITAS, the employer must be a legally registered Indonesian entity — either a PT (local company), PT PMA (foreign-owned company), or representative office. This means the company must have all corporate documents in order, including NPWP (tax number), business licenses (OSS/NIB), and be in good legal standing.

Recent enforcement trends indicate that the Directorate General of Immigration is paying closer attention to compliance. Dormant or inactive companies are increasingly flagged, and their sponsored KITAS may be canceled. This makes it essential for businesses to not only obtain sponsorship approval but also maintain active compliance with manpower reporting and tax obligations throughout the employee’s stay.

Essential Conditions to Be a Valid Sponsor

Not every company can act as a Sponsor for KITAS. Indonesian law requires that the sponsoring company meet several legal, administrative, and financial conditions before being approved to sponsor foreign workers.

First, the company must be in good legal standing. This means having a valid NIB (Nomor Induk Berusaha) from OSS, up-to-date business licenses, a registered NPWP (tax number), and all required incorporation documents (deed of establishment, approval from the Ministry of Law and Human Rights). If the company is dormant or inactive, it risks losing its ability to act as a Sponsor for KITAS, which can lead to the cancellation of the employee’s permit.

Second, the company must comply with sectoral regulations. Certain industries (such as retail, cooperatives, or specific professional services) may have restrictions on hiring foreign workers. Before applying, employers should ensure that their sector is open to foreign manpower under the latest RPTKA regulations.

Third, financial capacity is crucial. Acting as a Sponsor for KITAS means being responsible for paying the DKP-TKA levy (USD 100 per month per foreign employee), ensuring BPJS (social security) contributions are paid when applicable, and fulfilling tax obligations on behalf of the employee.

Finally, the company must maintain proper manpower reporting and keep its records clean with no major violations. Regular reporting to the Ministry of Manpower, maintaining up-to-date employee data, and timely tax filings ensure the company remains a reliable sponsor and avoids compliance issues.

Step-by-Step Process: Acting as a Sponsor for KITAS

Acting as a Sponsor for KITAS involves a structured process that integrates manpower approvals and immigration formalities. Each step must be carefully followed to avoid rejection, penalties, or delays.

Step 1: Plan & Prepare RPTKA (Foreign Manpower Plan)

The first step is submitting an RPTKA application to the Ministry of Manpower. This document details why the foreign worker is needed, their position, duration of employment, and training plans for local employees. As the Sponsor for KITAS, the company must submit supporting documents such as its deed of establishment, NIB, tax number (NPWP), organizational structure, and proof of business operations.

Step 2: Obtain Notification / Work Permit (IMTA Equivalent)

Once the RPTKA is approved, the company applies for a Notification, which serves as the work permit (previously called IMTA). At this stage, the sponsor must pay the DKP-TKA levy—USD 100 per month for each foreign employee. Payment proof must be submitted to proceed.

Step 3: Apply for VITAS (Limited Stay Visa)

For offshore applicants, the next step is to apply for the VITAS through the Indonesian Immigration system. The Sponsor for KITAS receives an electronic visa approval (telex visa) that the foreign employee will use at the Indonesian Embassy or Consulate before entering Indonesia.

Step 4: Convert to ITAS / KITAS Upon Arrival

Once the foreign employee arrives, the visa must be converted into an ITAS (Limited Stay Permit) and KITAS (Limited Stay Permit Card). The sponsor submits biometrics appointments, photos, and fingerprints for processing.

Step 5: Final Registration (SKPPS) & Reporting

After issuance, the company must ensure that the foreign employee is registered with the local Civil Registry (SKPPS) and report their employment status to the Ministry of Manpower.

Step 6: Ongoing Compliance & Renewals

A reliable Sponsor for KITAS is responsible for renewals before expiration, reporting address or position changes, and maintaining clean manpower and tax records to prevent revocation.

This step-by-step process ensures that the foreign employee remains legally employed and avoids costly immigration penalties. Employers who fulfill their sponsorship obligations protect both the company and the employee from compliance risks.

Employer Obligations & Risks of Sponsor Role

Acting as a Sponsor for KITAS comes with significant legal and financial responsibilities that must be fulfilled consistently to keep the foreign employee’s status valid.

1. Payment of DPKK (Foreign Worker Levy) and Processing Costs

Every sponsor must pay the DKP-TKA levy of USD 100 per month per foreign worker, along with all associated processing fees for RPTKA, Notification, and KITAS issuance. Failure to pay on time will halt the application process or block renewals.

2. Compliance with Job and Location Restrictions

As a Sponsor for KITAS, the company must ensure that the foreign employee only works in the role, industry, and location approved in the RPTKA and Notification. Assigning them to unauthorized projects or moving them to a different location without updating immigration may result in sanctions, including KITAS revocation.

3. Timely Renewals and Reporting

Sponsors are obligated to submit renewal applications before the KITAS expiry date and report any changes, such as job title, office address, or early termination of employment. Neglecting these obligations can cause the employee to overstay, triggering fines or deportation.

4. Penalties for Non-Compliance

If a Sponsor for KITAS fails to fulfill these duties, the consequences can include administrative fines, blacklisting of the company, and even immigration bans for the foreign worker. In serious cases, the government may revoke the KITAS, forcing the employee to leave Indonesia.

Employers must recognize that their sponsorship obligations are not a one-time task but an ongoing compliance responsibility. Failing to uphold these obligations jeopardizes both the company’s credibility and the employee’s legal right to stay and work in Indonesia.

What Happens If Sponsor Becomes Dormant, Bankrupt, or Ceases Operations

The validity of a foreign worker’s KITAS is directly tied to the status of their sponsoring company. If a sponsor company becomes dormant, is declared bankrupt, or formally ceases operations, the sponsorship relationship is effectively terminated. This creates an immediate legal risk for the foreign employee, as the permit is no longer supported by a valid legal entity.

In such cases, immigration authorities may take several actions. They may revoke the foreign worker’s KITAS and issue a mandatory Exit Permit Only (EPO), requiring the employee to leave Indonesia within a specified period. Alternatively, they may provide an opportunity for the employee to transfer their sponsorship to a new employer, provided the process is initiated quickly and in compliance with manpower and immigration regulations.

For the employee, acting swiftly is critical. The first step is to assess whether the company’s legal status can be reinstated or if a replacement sponsor must be found. If a new sponsor is available, the employer must process a sponsor transfer, which may include applying for a new RPTKA, Notification (IMTA), and KITAS. This process can be time-sensitive, as delays risk overstaying violations and potential blacklisting.

Emergency solutions can sometimes be arranged, such as temporary bridging arrangements through an authorized manpower agency or nominee company while the employee secures long-term employment. However, these options must still meet immigration and manpower approvals to remain lawful.

In practice, companies should have contingency plans in place to protect foreign employees in case of financial distress or closure. Likewise, employees should maintain open communication with their HR or legal team to monitor their sponsor’s status and be prepared to take prompt action. This proactive approach helps avoid sudden legal issues, forced departures, or reputational consequences that may arise from a sponsor’s operational failure.

Sponsor Transfer & Contingency Strategies

When a foreign employee’s sponsor can no longer support their KITAS—whether due to company closure, dormancy, or mutual termination of employment—a legal sponsor transfer becomes critical to maintain immigration compliance. The process involves multiple steps, requires careful timing, and must strictly follow Indonesian immigration and manpower regulations.

Sponsor Transfer Process & Timeline

The transfer process generally begins with the termination of the existing KITAS through the issuance of an Exit Permit Only (EPO). Once the EPO is granted, the foreign worker must apply for a new RPTKA and Notification (IMTA) under the new sponsoring entity. This is followed by a new VITAS application (if the worker is offshore) or an in-country conversion to a new KITAS if the worker remains in Indonesia during the transition. Timelines are tight—delays can result in overstay penalties—so early preparation is essential.

Alternative Structures: Co-Sponsors & Umbrella Entities

To minimize disruption, some companies use co-sponsorship arrangements, joint ventures, or umbrella entities. These structures allow a smoother transfer by keeping the foreign worker legally sponsored during the transition period. For example, an umbrella entity may act as a manpower service provider that temporarily hires the foreign worker while the new company finalizes its licensing and compliance obligations.

Interim Measures & Risk Mitigation

If immediate transfer is not possible, foreign employees may apply for an EPO and temporarily exit Indonesia, then reapply for a fresh KITAS once the new sponsor is ready. Although this approach involves additional travel and costs, it ensures compliance and avoids potential blacklisting or deportation risks.

Best Practices to Avoid Disruptions

Employers and employees should proactively monitor company compliance status to anticipate problems early. Keeping documentation current (RPTKA, IMTA, tax, and BPJS records) allows for a smoother transfer process. Employers should also include provisions in employment agreements outlining contingency measures for sponsorship failures. Employees should maintain copies of their immigration documents and have a legal advisor or service provider on standby to handle urgent transfers.

By planning ahead and understanding available strategies, both employers and foreign workers can avoid disruptions, maintain lawful status, and ensure business continuity even when sponsorship challenges arise.

Checklist & Template Tips

Proper preparation is key to avoiding delays and compliance issues when acting as a Sponsor for KITAS or transferring sponsorship. A structured checklist and clear documentation can save time, minimize mistakes, and keep both employer and employee compliant with immigration and manpower regulations.

Sponsor Readiness Checklist‍

Before applying as a Sponsor for KITAS, a company should ensure:

• Legal Documentation: Valid business license (NIB/OSS), deed of establishment, NPWP (tax number), and updated corporate documents.
• Operational Status: Company must be active (not dormant) and in good legal standing, with no ongoing violations.
• Financial Readiness: Ability to pay DPKK (USD 100/month levy), KITAS processing fees, and other related costs.
• Compliance Records: Up-to-date BPJS registration, manpower reports (RPTKA), and tax filings.
• HR & Admin Preparedness: HR team familiar with KITAS procedures and able to submit required documents promptly.

Key Documents for Sponsor Transfer‍

When a foreign employee changes sponsors, employers should collect and prepare:

• Copy of employee’s current KITAS, passport, and IMTA/Notification.
• EPO (Exit Permit Only) from the previous sponsor.
• Updated RPTKA and Notification approved under the new sponsor.
• Letter of sponsorship and guarantee from the new company.
• Proof of company compliance (business license, tax registration, NIB).

Template Headings for Key Letters‍

To streamline the process, companies can prepare templates for:

• Sponsorship Letter: Outlining employer’s role, position offered, and guarantee of responsibility.
• Termination Letter: Confirming the end of sponsorship and requesting EPO.
• Transfer Request Letter: Addressed to immigration and manpower authorities, requesting approval for sponsorship transfer.

Having these checklists and templates in place ensures a smooth process, avoids missing critical steps, and helps both parties remain compliant under Indonesian law.

Conclusion & Call to Action

Being a reliable Sponsor for KITAS is more than just an administrative task — it is the legal backbone of hiring and retaining foreign talent in Indonesia. Companies in Bali, Lombok, and Sumbawa that take their sponsorship role seriously gain a competitive edge by ensuring their expatriate employees can work and stay legally, without the fear of sudden immigration issues.

When a sponsor fails — whether through dormancy, bankruptcy, or compliance lapses — the consequences can be severe. Employees risk losing their KITAS, being forced to leave Indonesia, or facing unnecessary legal and financial hurdles. These disruptions can cost businesses valuable time, money, and reputation.

The best way forward is proactive preparation. Audit your company’s sponsorship readiness, verify compliance with manpower and immigration regulations, and ensure timely renewals of RPTKA, IMTA, and KITAS. If your business is facing sponsor-related challenges, consult experienced legal and immigration experts immediately to explore solutions such as sponsor transfer or restructuring before problems escalate.

Take action today — secure your Sponsor for KITAS capacity and protect both your business continuity and your foreign employees’ legal standing in Indonesia.