Work Permit and Stay Permit for Foreign Workers in Indonesia Simplified
On March 29, 2018, The President of the Republic of Indonesia (Joko Widodo) issued Presidential Regulation Number 20 of 2018 Concerning the Use of Foreign Workers in Indonesia (“Regulation 20/2018”). Earlier this year the President already stated that he would simplify the procedures for foreign workers’ work permit and stay permit in Indonesia. The Regulation 20/2018 is the actual implementation of the President’s earlier statement. In this column we will discuss the main changes in the Regulation 20/2018.
Expatriate Placement Plan (RPTKA) and Work Permit (IMTA)
The main changes in relation to the Expatriate Placement Plan (RPTKA) and Working Permit (IMTA) are:
- A foreign worker can work for more than 1 employer in the certain sectors of industry with the same job title. The type of job titles, sectors and the procedures for double employers will be regulated in a specific regulation. For now, no specific regulation has been issued yet and it is unclear to which sectors of industry this rule will apply.
- The processing time of the Expatriate Placement Plan (RPTKA) and the Work Permit (IMTA) will each not take longer than 2 working days.
- The Expatriate Placement Plan (RPTKA) is no longer required for foreigners fulfilling the following requirements:
- Shareholders who are working as Director or Commissioner in the same company of which they are shareholder;
- Diplomatic and consular officers; or
- Foreign workers who are working on jobs which are vital to the Indonesian Government. At the moment it is unclear which jobs considered vital to the Indonesian Government, and we will need to wait for further implementation from the Minister of Manpower
Above foreign workers can immediately apply for a Work Permit (IMTA) at the Ministry of Manpower.
- For the urgent and emergency works for a maximum period of 1 month, the employer can now apply for the Expatriate Placement Plan (RPTKA), no later than 2 working days after the foreign worker has started working in Indonesia. The Expatriate Placement Plan (RPTKA) will be issued within 1 day after the submission and after issuance the employer can apply for the work permit (IMTA).
It is at the moment unclear what the consequences are for Foreign Workers who have started working, but whose Expatriate Placement Plan (RPTKA) application is rejected. Moreover, this provision seems to violate article 42 of the Manpower Law, which requires all employers of foreign workers to have a work permit (IMTA) for each of their foreign workers.
- The employers which have no obligation to arrange RPTKA and pay the Skill and Development Fund (DPKK) are:
- Government agencies;
- Representatives of foreign countries, such as Embassies or Consulates;
- International agencies;
- Social institutions;
- Religion institutions;
- Certain job titles in the Education institution, which job titles will be regulated by the Minister of Education.
Limited Stay Visas (VITAS) and Limited Stay Permits (ITAS)
- The Regulation 20/2018 confirms that the Limited Stay Visa (VITAS) can be issued by the Indonesian Embassies in foreign countries. The new regulation restricts however the processing time of Indonesia Embassies, and they are now required to issue the Limited Stay Visas (VITAS) within 2 working days as of receipt of the complete application.
- The Limited Stay Permit (ITAS) can be applied for at the Indonesian Embassies in foreign countries. In such case, the Limited Stay Permit (ITAS) will be issued at the immigration checkpoint (airport, seaport, cross-border post). The Regulation 20/2018 does not clarify for which type of Limited Stay Permit (ITAS) this rule applies, however our assumption is that this only applies to urgent / emergency Limited Stay Permits (ITAS) for a maximum period of 1 month.
- The Limited Stay Permit (ITAS) can be issued for 2 years and is extendable. The Regulation 20/2018 does not regulate whether this applies to all types of stay permits, or whether this only applies to certain types of stay permits. This will need to be further clarified by an implementing regulation.
- Every employer is mandatory to register in the Manpower Social Secutiry (BPJS ketenagakerjaan) for the foreign workers who are working in Indonesia for more than 6 months and/or for a similar insurance in an insurance company which operates in Indonesia. The Regulation 20/2018 seems to regulate Manpower Social Secutiry (BPJS ketenagakerjaan) is no longer required, as long the foreign worker is insured by a similar private insurance. This will however need to be confirmed with the Indonesian Government.
- The company is required to issue a certificate of training / competence for the Indonesian counterpart worker of the foreign worker as proof of transfer of knowledge from the foreign worker to the Indonesian counterpart worker.
This regulation will come in force 3 months after the issuance date, i.e. June 29, 2018. The technical implementation of this regulation will be performed by the Ministry of Manpower and the Ministry of Law and Human Rights (immigration), which will lead to more clarity on the actual implementation of this regulation. We will keep a close eye on any updates for this regulation.