Illegal Foreign Workers Cost Company Rp360 Million in Bintan

Illegal foreign workers highlighted in a close-up image of the word ilegal in a dictionary, symbolizing labor violations and compliance issues in Indonesia.

Illegal foreign workers have once again drawn regulatory attention in Indonesia, after authorities fined a company Rp360 million or approximately USD 23,000 for labor violations in Bintan, Riau Islands. The case highlights strict enforcement against illegal foreign workers operating without proper permits in strategic industrial areas.

In early January 2026, the Riau Islands Provincial Manpower and Transmigration Office, officially known as Dinas Tenaga Kerja dan Transmigrasi Provinsi Kepulauan Riau (Disnakertrans Kepri), uncovered multiple compliance breaches during a labor inspection in the Galang Batang SEZ (Special Economic Zone).

The enforcement action reflects Indonesia’s broader effort to ensure that foreign employment follows manpower and immigration regulations. Authorities continue to remind companies that administrative approval, immigration permits, and employment authorization must align before any foreign worker begins work.

 

Illegal Foreign Workers Found in Galang Batang SEZ

During an inspection conducted on January 7, 2026, Disnakertrans Kepri reviewed employment practices across eight companies operating inside Galang Batang SEZ, located in Bintan Regency. Inspectors identified a total of 52 foreign workers. However, officials confirmed that only 21 of them complied with employment regulations.

Disnakertrans Kepri Head Diky Wijaya explained the findings. “Twenty-one foreign workers have complied with the regulations because they possess RPTKA (Foreign Manpower Utilization Plan), while the remaining 30 were working without valid documents,” he said.

The violations primarily occurred at PT Huaqiang Konstruksi Indonesia, which employed 30 foreign workers without proper authorization. Another company also violated the rules by hiring one foreign worker without complete documentation. Meanwhile, six other companies operating in the zone met all regulatory requirements.

 

Foreign Worker Violations Trigger Rp360 Million Fine

Foreign worker violations in this case resulted in significant financial penalties. Disnakertrans Kepri determined that employing foreign workers without an RPTKA breached Article 42 paragraph (1) of Law No. 13 of 2003 on Manpower, as amended by Law No. 6 of 2023. The violations also contravened Government Regulation No. 34 of 2021.

Following the inspection, Disnakertrans Kepri issued an official Inspection Memorandum and ordered companies to temporarily stop using unauthorized foreign workers. Authorities then imposed administrative sanctions in the form of fines.

“The fine stipulated by regulation is Rp6 million per person per month. Since the foreign workers have only been working for two months, the fine is calculated as two months multiplied by Rp6 million per person, resulting in a total fine of Rp360 million,” Diky explained.

The violating company confirmed its willingness to pay the fine. After settlement, Disnakertrans Kepri will transfer the case to the Immigration authorities for further handling.

 

RPTKA and Working KITAS Are Mandatory for Foreign Employment

Indonesian regulations require companies to secure an approved RPTKA before hiring any foreign worker. However, RPTKA approval alone does not grant the right to work. Foreign workers must also hold a valid Working KITAS, which is a Limited Stay Permit specifically issued for employment purposes.

A Working KITAS differs from a visit visa or general stay permit. While a visa allows entry into Indonesia, only a Working KITAS legally authorizes employment activities. Companies that ignore this requirement risk administrative sanctions, fines, and immigration enforcement.

Diky emphasized the non-negotiable nature of these obligations. “RPTKA is mandatory. Without this document, foreign workers are not allowed to work in Indonesia,” he stressed.

 

Immigration Follow-Up and Status of Foreign Workers

Despite the sanctions, authorities confirmed that the foreign workers involved will not face immediate deportation if their immigration status remains valid. Disnakertrans Kepri clarified that Immigration will assess the case based on stay permits and visa validity.

“As long as their visas are valid, they may remain in Indonesia. However, once their permits expire, they must return to their home country,” Diky said.

Immigration will take further action after the administrative process concludes. This step ensures coordination between manpower enforcement and immigration oversight.

 

Stronger Oversight of Foreign Workers in Bintan

The Bintan case serves as a clear warning to companies operating in special economic zones across Indonesia. Authorities continue to expand inspections and respond to reported violations involving foreign workers. Disnakertrans Kepri confirmed that it has received around 10 additional reports related to foreign worker compliance.

“Currently, we have received around 10 reports of alleged foreign worker violations. One has been handled, and the rest will be followed up on gradually,” Diky said.

Ultimately, businesses must ensure full compliance by securing RPTKA approval and a valid Working KITAS before employing foreign nationals. Failure to do so exposes companies to heavy fines, operational disruptions, and increased regulatory scrutiny.

 

 

Source: letsmoveindonesia.com

Image: Mark Poprocki Creative via Canva

Latest Article
Illegal Foreign Workers Cost Company Rp360 Million in Bintan
Illegal foreign workers have once again drawn regulatory attention in Indonesia, after authorities fined...
KBLI 2025 Changes Will Not Cancel Existing Business Licenses
Indonesia’s business community has closely watched the transition from KBLI (Indonesian Standard...
5 Corporate ‘Environmental Sins’ That End in Permit Loss
Corporate environmental violations are at the center of Indonesia’s latest enforcement wave. The government...
Indonesia Investment Outlook Strengthens at WEF Davos 2026
Indonesia’s investment outlook continues to strengthen as the Indonesia Pavilion drew strong global investor...
Indonesia Secures 6.7 Billion USD in Mineral Investments
Indonesia reached USD 6.7 billion in mineral investments in 2025, reflecting the aggressive push to upgrade...

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Contact Our Consultants

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.