Working and making an income in Indonesia requires a KITAS, the normal annual cost for a KITAS is USD 1200 (actual fee) + around USD 500 (agent fees, this amount depends on the agent) + a trip out of Indonesia (typically to Singapore or Malaysia) the first year – these trips are often referred to as “VISA runs”.
Not using agents is almost impossible and requires so much local knowledge and time that it is not worth it.
In order to apply for a KITAS you need to be sponsored by a legal company entity. This can either be own company or the company you might be working for. Normal processing time is around 30 days.
Once you got your KITAS you still need to apply for a multi entry/exit permit, which is not a part of the KITAS. This permit is needed when you travel in and out of Indonesia and forgetting to acquire this permit will bring you a world of trouble in the airport. The cost for an entry/exit permit is around USD 200 for 6 months.
You might already now have noticed that legally staying and working in Indonesia is complicated and a little expensive. Adding the numbers up sets you back USD 1900 + the trip out of the country the first year (USD 400).
There are a number of other VISA types (tourist, social VISA), but usually they require that you leave the country every 30 or 60 days. On top of that the officials change the rules for these VISA types constantly, which make it very hard to figure out your legal status.
Immigration rules in Indonesia are not made to make it easy to enter the country for working – they are made to squeeze the most money out of people.

Comments
KITAS
OMG it's an very long procedure, one should undergone for many procedures to work in Indonesia. So be prepare mentally and financially if you are interested in working in Indonesia. Since it require lot of patience and and money to get work permit.
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