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Work Permit and Stay Permit Procedure

In this article we will discuss the procedures, restrictions and requirements of foreign work permits in Indonesia.

Work Permits Indonesia IMTA Notification RPTKA
OVERVIEW PROCEDURE FOR WORK PERMITS AND STAY PERMITS (ITAS) IN INDONESIA

The Ministry of Manpower (MOM) regulation number 10 of 2018 (MOM Regulation 10/2018) regulates foreign work permits applications in Indonesia. MOM Regulation 10/2018 is an implementing regulation of the Presidential Regulation 20/2018. In this article we will discuss the procedures, restrictions and requirements of foreign work permits in Indonesia.

NOTIFICATION REPLACES IMTA

Under the new MOM Regulation 10/2018, the foreign worker work permit now consists out of two licenses:

  1. firstly, the expatriate placement plan (RPTKA), which states the job title of the foreign worker; and
  2. secondly, the Notification, which is issued specifically for a foreign worker and contains all personal details of the foreign worker.

There is no longer a separate work permit (IMTA). In practice however, not much has changed and the change from IMTA to Notification is merely a change of name. A foreign worker can only start working in Indonesia after the MOM issues both the RPTKA and the Notification.

RPTKA VALIDITY

Under the MOM Regulation 10/2018, the validity of the RPTKA can be up to 5 years. However, this is violating the Manpower Law, which states that a Fixed Term Employment Agreement is valid for up to 2 years. In practice, the MOM only approves work permits for a maximum period of two years. However, in the majority of applications, the MOM only approves work permits for one year only.

INVESTORS DO NOT REQUIRE A WORK PERMITS

In case foreign directors and commissioners also hold a substantial amount of shares in the same Indonesian Company (PT PMA), the do not require a work permit (Notification and RPTKA) from the MOM. The Indonesian government considers these foreigners investors and as such they can immediately apply for an Investor Stay Permit (ITAS). The main advantage of the Investor Stay Permit (ITAS) is that these investors a no longer under the obligation to pay the monthly USD 100.00 to the Manpower Development Fund (DPKK / DKP-TKA).

INDONESIAN LANGUAGE REQUIREMENT

Under the MOM Regulation 10/2018 it is mandatory for companies to facilitate Indonesian language education and training for foreigners who hold a long term work permit. The language training is not required for directors, commissioners and foreign workers who are using a short term or urgent/emergency work permit. The MOM has stated that the foreign workers require a language training certificate from an authorized institution. Until to date, the MOM has not implemented the Indonesian language requirement, and it is not clear when (or if) this will be implemented in the near future. Historically, the language requirement has always met great resistance from the international business community in Indonesia.

DOUBLE JOB TITLE EXEMPTION

Generally, foreign workers can only work under one job title in an Indonesian company. There are however a few exemptions to this rule. MOM Regulation 10/2018 allows foreigners who work in the vocational education & training sector, the oil and gas [K3S] sector and the digital economy sector to have multiple job titles under multiple companies. In addition, foreign directors and commissioners are allowed to have director or commissioner positions in other Indonesian companies. When foreigners are working under multiple companies, they must apply for a work permit for each company they are employed at.

URGENT WORK PERMITS

When foreign workers apply for an emergency work permit, they currently cannot enter Indonesia before the issuance of their RPTKA and Work Permit (IMTA). Under the MOM Regulation 10/2018, the foreign workers can immediately enter Indonesia using a Visa on Arrival, and start working. The RPTKA can be submitted at latest 2 days after the foreign workers are working.