The Untapped Potential of the Spouse of a Foreign Worker

May 3, 2025 Leigh McKiernon

As global mobility increases and skilled professionals take on international assignments, governments are becoming more intentional about attracting top talent. Immigration pathways are being modernized, with work visas, tax breaks, startup accelerators, and digital nomad schemes all designed to appeal to high-value workers. But in the race to compete for global talent, most countries are overlooking one of the most capable and underutilized contributors already living within their borders: the spouse of a foreign worker.

These individuals are far from passive. Many are senior professionals in their own right—architects, doctors, lawyers, and executives—who have put their own careers on hold to support a partner’s relocation. They are credentialed, globally minded, and often multilingual. Yet in countries like Indonesia, they are effectively locked out of the labor market due to restrictive visa structures that frame them only as dependents.

This is a significant policy blind spot. At a time when nations are hungry for innovation and diverse thinking, excluding such a rich source of human capital is counterproductive. Spouses of foreign workers represent not just personal potential, but strategic value. Enabling them to contribute is not charity; it is sound economic policy. Talent doesn’t travel alone, and neither should opportunity.

"The spouse of a foreign worker is not a dependent. They are untapped talent, ready to contribute to the economy if only policy would allow it."

Leigh McKiernon

A High-Caliber Talent Pool, Hiding in Plain Sight

The spouse of a foreign worker is not a supporting character in the story of global mobility. Often, they are seasoned professionals in their own right, bringing deep sector expertise, advanced education, and the kind of cultural fluency that comes only from working across borders. Many hold postgraduate qualifications and have led teams, negotiated across jurisdictions, and driven innovation in some of the world’s most competitive markets. Their profiles would stand out in any domestic hiring pool.

Yet in countries like Indonesia, this talent remains largely invisible in formal economic planning. The existing framework issues dependent stay permits (KITAS) that prohibit these individuals from entering the labor force unless they secure their own separate work visa—a process that is complex, restrictive, and rarely employer-initiated. As a result, many spouses of foreign workers, despite their credentials, are legally blocked from contributing to the very economy they now live in.

The contradiction is striking. Indonesia is pushing to advance digital infrastructure, grow its health systems, and position itself as a regional innovation hub. And yet, it overlooks a ready pool of qualified professionals already living in the country. This is not just a missed opportunity—it is an avoidable constraint on progress.

Across expat communities, the stories are common and compelling: a city planner with a decade of urban revitalization experience now confined to domestic duties; a health economist volunteering informally at a local NGO because she cannot be paid; a senior legal adviser informally mentoring junior staff in a co-working space, unable to work officially. These are not isolated cases. They reflect a systemic underutilization of highly skilled individuals.

Unlocking the professional potential of these foreign spouses would require little policy effort, but the payoff—both economically and socially—would be substantial.

Structural Blind Spots in Spousal Employment Policy

Indonesia is not alone in overlooking the economic value of the spouse of a foreign worker, but it is emblematic of a wider problem in global labor mobility. Across many jurisdictions, immigration systems remain structured around the notion of a single primary worker, with spouses assigned a dependent status that often denies them the right to work. This framework fails to reflect the increasingly common reality of dual-career families, where both partners are highly qualified and seeking professional fulfillment.

By focusing exclusively on the individual foreign worker, policymakers inadvertently sideline the partner of a foreign worker, ignoring their potential contributions to both economic growth and social integration. When spouses are allowed to work, families are more stable, more financially resilient, and more inclined to stay longer in the host country. When they are not, frustration builds, satisfaction declines, and the likelihood of premature departure increases. In this context, spousal employment is not merely a personal issue—it becomes a talent retention issue.

Several countries have moved to address this. Canada, Australia, the UK, and much of Western Europe have implemented policies that allow the foreign spouse of a skilled worker to access the labor market, often through open or unrestricted work permits. These reforms recognize that modern talent does not travel alone. A skilled migrant is often accompanied by an equally accomplished spouse.

Indonesia, however, continues to rely on a rigid framework that prioritizes local job protection without considering how foreign spouses might complement, rather than compete with, local talent. Many bring niche skills or international expertise that are not readily available in the local labor pool. The system, in trying to safeguard employment, ends up excluding professionals who could add real value.

Addressing this blind spot would not undermine local labor markets. It would enhance them.

The Economic and Business Case for Spousal Employment Reform

Facilitating labor market access for the spouse of a foreign worker is not an act of generosity. It is a pragmatic economic decision grounded in the principles of productivity, retention, and competitiveness. Around the world, governments are investing heavily in strategies to attract highly skilled professionals, yet many fail to recognize that enabling their spouses to work is a low-cost, high-impact complement to these efforts.

At the macroeconomic level, the benefits are clear. Each additional professional participating in the workforce contributes to tax revenue, consumption, and innovation. Dual-income households bring greater financial stability, which translates into higher spending, better education choices, and stronger local engagement. When foreign spouses are integrated into the workforce, social cohesion improves, professional development accelerates, and knowledge transfer becomes a natural outcome of cross-cultural collaboration.

The business case is equally compelling. When a company recruits a foreign employee, the salary package often has to account for the fact that the accompanying partner may not be able to work. If that barrier is removed, total compensation expectations decrease, making international hires more cost-effective. In addition, spouses of foreign workers represent a ready, qualified, and often underutilized talent pool—available without the relocation expenses or onboarding complexities typical of overseas recruitment.

This presents a unique opportunity for small and mid-sized companies, NGOs, and startups that may lack the infrastructure to sponsor foreign workers directly. With policy support, they could gain access to specialized expertise already within the country.

In the broader context of global talent competition, ignoring this issue places countries at a disadvantage. When families must choose between professional sacrifice and full participation, they will often opt for destinations where both partners can thrive. Supporting spousal employment is no longer optional. It is a core element of staying competitive in a global labor market.

A Targeted Policy Shift with High Returns

Addressing the employment restrictions placed on the spouse of a foreign worker does not require a sweeping overhaul of Indonesia’s immigration system. The solution is achievable through targeted, well-structured reform—one that acknowledges the presence of highly qualified foreign spouses already in-country and allows them to participate meaningfully in the workforce. Other countries have done this effectively, offering models that Indonesia could adapt to fit its economic and regulatory context.

A straightforward approach would be the creation of a Spousal Work Permit, issued as an optional extension of the dependent KITAS. This would allow the partner of a foreign worker to apply for employment in approved sectors, including areas where skills shortages exist or where international expertise adds value. The system could also accommodate freelancing, consulting, and remote work, with minimal regulatory barriers. Oversight mechanisms, such as tax registration or light-touch employer declarations, would ensure transparency without creating unnecessary red tape.

Importantly, such a reform would not undercut local employment opportunities. Rather, it would unlock a new tier of contributors—foreign spouses with international training, deep professional networks, and specialized knowledge. These individuals are already invested in the country. What they lack is legal access to contribute.

Introducing a dedicated spousal employment pathway would not only improve the lives of foreign families but also send a broader message: that Indonesia is serious about becoming a destination for global talent. By aligning immigration policy with workforce development goals, the country can position itself as both competitive and inclusive. In doing so, it transitions from simply hosting skilled migrants to fully harnessing their collective potential—including that of their spouses.

The global economy is increasingly shaped by the mobility of skilled professionals and the families who accompany them. As countries compete to attract top talent, those that succeed will be the ones that understand talent migration as a family-driven decision, not just an individual one. The spouse of a foreign worker is an integral part of this equation, yet too often, policy frameworks continue to treat them as passive dependents rather than active contributors.

Indonesia has an opportunity to shift this narrative. By reforming its approach to spousal employment, the country can activate a pool of highly skilled individuals already present, already vetted, and already integrated into communities. These foreign spouses are not waiting for handouts. They are seeking the legal ability to work, to contribute, and to build meaningful professional lives.

The infrastructure to support this change exists. What is needed now is policy vision—an understanding that enabling the partner of a foreign worker to participate in the economy is not a concession, but a strategic advantage. As Indonesia looks to position itself as a competitive, modern economy, recognising and unlocking this hidden workforce could be one of its most impactful steps forward.

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