New Procedure for Foreign Worker Work Permit and Stay Permit Further Explained
On July 11 and 12, 2018, the Ministry of Manpower (MOM) and the Directorate General of Immigration (DGI), organized a seminar to further explain the implementation of the Presidential Regulation Number 20 of 2018 Concerning the Use of Foreign Workers in Indonesia (Regulation 20/2018), which was issued on March 29, 2018 (please read also our previous column, which is explaining the contents of Regulation 20/2018). In this article we will discuss the major changes discussed at the seminar. It is important to note, that none of the below changes are fixed, as there is not yet a regulation in place and MOM and/or DGI may decide to amend certain changes after discussions with stakeholders.
Foreign Worker Placement Plan (RPTKA) and Work Permit (IMTA)
Under the current situation, companies that intent to hire foreign workers (Sponsor Companies) must obtain a foreign worker placement plan (RPTKA) and work permit (IMTA). Under the proposed new situation, the Sponsor Companies will need to apply for an RPTKA and Notification (which is the replacement of the IMTA). MOM explained that the processing time will be reduced. Based on our experience however, the actual processing time can vary greatly from the regulation.
Validity of Foreign Worker Placement Plan (RPTKA)
Currently, an RPTKA is valid for a maximum period of 1 year, which means that each year a Sponsor Company is required to apply for a new RPTKA. Under the new situation, the RPTKA will be valid based on the period of the Employment Agreement or Project Contract. We estimate that the maximum validity of the RPTKA will be not more that 2 years, in line with the Manpower Law.
Emergency RPTKA Foreign Worker Placement Plan (RPTKA)
An emergency RPTKA only applies to force majeure / urgent situations which result in a risk to the Indonesian society, such as natural disasters. Under the current situation, the RPTKA must be submitted before the foreigner can start working in Indonesia. Under the new situation, foreigners can immediately enter Indonesia and start working. Their RPTKA must be submitted not later than 2 days after the foreigner starts working in Indonesia.
Stay Permit (ITAS) and Multiple Re-Entry Permit (MERP)
Under the current situation, the VTT is collected by the foreigner at the Indonesian Embassy abroad and the ITAS and MERP can be collected at the local Immigration Office, after arrival into Indonesia. Under the new situation, the telex visa (to obtain a stay visa VTT abroad), Stay Permit (ITAS) and Multiple Re-Entry Permit are applied for at the time of applying the Notification. Foreign workers applying for a new work and stay permit, can collect their ITAS and MERP either at the embassy abroad or at the airport upon entry into Indonesia. Not all embassies and not all airports will provide the facility of collection of ITAS and MERP, therefore it is important that foreigners seek prior advise from their immigration consultant.
Indonesian Language Requirement
The Indonesian language requirement has been a sensitive issue over the past few years. Currently, there is no language requirement for foreigners working in Indonesia. Under the new proposed situation, it will become mandatory for foreigners who work in Indonesia on a long term work permit (more than 6 months) to learn the Indonesian language. Foreigners on a short term work permit (6 months or less), directors and commissioners are exempted from the Indonesian language requirement.
Double Job Title in Certain Business Fields
Currently only directors and commissioners are allowed to hold another director or commissioners position in another company. Under the new proposed situation, foreign workers active in vocational education & training, oil and gas (K3S) and Digital Economy can hold similar job titles at multiple companies.