A new flying school in Indonesia are using C172 with Lycomings that have STCs to run on Mogas, due to the Avgas problem is this part of the world.
As for what's required to work in Indonesia, you must be sponsored by a company who then submits their Foreign Man Power Utilization Plan (known as RPTKA) to the Ministry of Manpower to show why they need to employ foreigners. Approval is usually granted if there is no-one in Indonesia who can perform the role that the company is trying to fill. This usually limits the type of jobs available to those in a training capacity with the aim to benefit the local workforce in the future. The sponsoring company also has to pay a Special Skills Development Fund (DPKK) to the Ministry of Manpower which is USD $100 a month, or $1200 a year and only after this fee is paid will you get your approval. This fee is used to help develop the skills of local workers so that in future, the country will be able to be self-sufficient with their own local workforce.
Once the RPTKA has been approved, the company then applies for Work Recommendation Application to the Ministry of Manpower (known as the TA-01). Once this is approved, you will then get your VITAS which is the visa that will allow you to enter the country. Once you're in the country, you then have the a week to convert the VITAS to the KITAS which is your work permit.
This is just the paper work required to get you in to Indonesia and working legally. You then have to deal with the DGCA for license conversion separately which is a different kettle of ikan altogether.
Rumour has it that there is a company in Indonesia who doesn't bother with all this for whatever reason.Those without a valid work permit can of course be deported out of the country.