Are you planning or already hire foreign workers?
Many expats employed in Indonesia, for its population size of more than 251 million, there is only a 6.1% rate of unemployment, which speaks for itself. Indonesia showing significant economic growth, a welcome indicator for those developing business in Indonesia.
Requirements to Hire a Foreign Worker
The Indonesian Minister of Manpower and Transmigration (“MOMT”) Reg 12 provides that a foreign candidate must meet several requirements: (i) possess educational qualifications suitable for the intended position; (ii) possess competency certificates or work experience of at least five years suitable for the intended position; (iii) sign an undertaking to transfer knowledge to the Indonesian counterpart; and (iv) be able to communicate in the Indonesian language.
Previously, the 2008 regulation merely required either point (i) or (ii), whereas the new regulation requires that both requirements be met. The language requirement is not new and there is no indication that there will be any change of policy in that regard.
Expatriate directors and commissioners, or those employed in entertainment business services (usaha jasa impresariat) or for work that is temporary in nature (see below), are exempt from the above four requirements. This exemption was not available under the 2008 regulation.
Foreign Worker Utilization Plan
The company is required to complete a foreign manpower utilization plan, or RPTKA (Rencana Penggunaan Tenaga Kerja Asing), to be approved by the MOMT. The supporting documents now include a written Indonesian Counterpart Mentoring Program Plan (Rencana Program Pendampingan) in addition to the appointment letter of the Indonesian counterpart trainee.
Hiring Foreign Workers for Temporary Work
MOMT Reg 12 provides a new mechanism to obtain a work permit for temporary work, which is described as (i) one-time work or pekerjaan sekali selesai (which we construe as work on a project basis), or (ii) work that is related to machinery installation, electricity, after-sales service, or products in a business trial stage.
The RPTKA for temporary work is valid for a maximum of six months and cannot be extended. Similarly, the work permit (Izin Mempekerjakan Tenaga Kerja Asing or IMTA) for temporary work is valid for a maximum of six months. This new work permit for short projects and the installation of new equipment, etc. should be quite useful in practice. Previously, expatriates would perform such activities using business visit visas, which was arguably beyond the scope of permitted activities for business visitors.
Long Term Working Visa
As part of the process of hiring foreign workers, the employer must still process the work permit (IMTA) but first has to obtain a visa (TA-01) recommendation letter from the MOMT.
The work permit (Ijin Mempekerjakan Tenaga Kerja Asing – IMTA) is vital since is become indicator that the foreign workers are working legally in Indonesia. Also foreign employees can apply for a KITAS card as stay permit and work legally until there is a requirement for re-application.
Where We Are?
Becoming your partner, we will handle the process and procurement from the beginning of the process, until all permissions are completed. we connected with many Government agencies, The Ministries, Immigration, Constabulary, Municipality, and the local Government. We listen! We react! We also provides support and counseling during the course of governmental permits and visas inspection routines.
Simply send email to our representative or call us during office hour, we will assist you soon.
