In Indonesia, cancelling a foreign employee’s work permit and visa is a legal obligation for every employer. Ending the contract alone is not enough; without proper cancellation, the company remains liable for the employee’s immigration status and risks fines, overstays under its name, and restrictions on hiring future foreign staff.
For foreign investors, following a structured exit procedure is essential to maintain full compliance with Indonesian manpower and immigration regulations.
Understanding Work Permits and Visas in Indonesia
Foreign employees typically hold two linked documents: the IMTA (work permit) issued by the Ministry of Manpower and the KITAS or KITAP (stay permit) issued by the Immigration Office.
These are tied directly to the employment relationship and must be cancelled when that relationship ends.
Properly revoking them ensures the company is no longer responsible for the employee’s legal work and residency status and avoids liability for overstays.
When To Initiate the Exit Process For Foreign Employees
The exit procedure should begin immediately after termination is confirmed, whether due to resignation, contract expiration, or dismissal. Starting early provides time to prepare documentation and coordinate with the employee to meet deadlines under Indonesian immigration law.
Example scenario: A Jakarta-based PT PMA (foreign-owned limited liability company) terminates a foreign marketing manager whose KITAS is due to expire in two months. By notifying authorities and starting the IMTA and KITAS cancellation process immediately, the company avoids an overstay penalty and secures smooth issuance of the Exit Permit Only (EPO).
Step-By-Step Guide to Cancelling Work Permits and Visas
Step 1: Notify the authorities (1–2 days)
Submit written notifications to the Ministry of Manpower and the Immigration Office to formally record the end of employment and start the cancellation process. Provide the employer’s notification letter, the termination letter, and copies of the employee’s passport and KITAS or KITAP.
Step 2: Revoke the work permit (IMTA) (3–5 days)
File the IMTA revocation with the Ministry of Manpower to end the employee’s right to work. Include the employer’s revocation letter, the original IMTA, the termination letter, and the employee’s passport bio-data page.
Step 3: Cancel the stay permit (KITAS or KITAP) (3–7 days)
After the IMTA is revoked, apply at the Immigration Office to cancel the KITAS or KITAP and terminate the employee’s residency status. Submit the cancelled IMTA, the employer’s cancellation request, the original KITAS or KITAP, and the employee’s passport.
Step 4: Apply for an Exit Permit Only (EPO) (1–3 days)
Request an EPO to allow the employee to legally leave Indonesia and close their immigration record.
MAP Resources Indonesia assists foreign investors with work permit and visa cancellations, ensuring smooth employee exits and full compliance. Contact us for end-to-end support with IMTA, KITAS, and EPO processing.
Provide the EPO application form, the cancelled IMTA, the KITAS or KITAP, the employee’s passport, and the employer’s request letter.
Step 5: Settle tax and BPJS obligations (timeline varies)
Before the EPO is finalized, ensure all tax filings and BPJS contributions are cleared. Submit proof of final salary payment, tax clearance forms if required, and BPJS contribution records to prevent delays.
Handling Special Cases For Visa and Permit Cancellations
If the employee is outside Indonesia during termination or has dependents holding linked visas, coordinate early with immigration to arrange remote cancellations or dependent permit transfers. Companies undergoing restructuring or liquidation may need additional approvals to complete cancellations.
Risks Of Non-Compliance with Work Permit and Visa Cancellation
Failure to cancel work permits and visas can result in overstays under the company’s name, immigration fines, and restrictions on hiring foreign employees in the future. Completing every step in order safeguards the company’s compliance record and avoids penalties.
How We Can Help
At MAP Resources Indonesia, we manage the entire exit process for foreign employees, including work permit revocation, visa cancellation, and EPO processing. Contact us today at info@mapresourcesindonesia.com to safeguard your business during every transition.
