INDONESIA: Further Details of Upcoming Regulations for Hiring Foreign Workers

July 13, 2018

Further details are now available of the proposed new regulations for hiring foreign workers (see our previous alert here). Note that there is still no implementation date for the new system.

The main changes are presented below:

Expatriate Placement Plan (RPTKA) and Work Permit (IMTA)

  • The individual work permit (IMTA) is likely to be replaced by a “notification” of the details of individual foreign workers, after which the foreign worker can start work.
  • In certain sectors (vocational education and training; oil and gas and digital economy), a foreign Director or Commissioner will be able to work, with the same job title, for more than one employer.
  • The target processing time for the RPTKA will be no more than 2 working days after the “expose” meeting and for the “Notification” will be no more than two working days after payment of the Billing Code. The Billing Code will include the DPKK (Skill and Development Fund) and other applicable fees and must be paid within 24 hours of issuance. Currently, each of these applications is processed in one to three weeks.
  • The RPTKA will no longer be required for shareholders working as Director or Commissioner in the same company in which they hold shares.
  • Mandatory Indonesian language training will be introduced for long-term work permits (duration of 7+ months), but not for Directors or Commissioners.The company should provide Indonesian Language training to the foreign worker by way of cooperation with an Indonesian language institute. The Ministry of Manpower (MOM) has not provided a list of authorized authorities and it seems to be allowed that employees can act as language teacher of the foreign worker. MOM officers may visit workplaces to check the language ability of foreign workers.
  • A recommendation letter for certain business activities from the related government body will no longer be required. However, certain ministries (e.g. oil and gas, education, mining, electricity, etc) are allowed to request additional requirements (e.g. job qualification, experience, job title, etc).
  • The validity of the RPTKA, currently a maximum of one year, will be based on the employment agreement between the employer and the foreign worker. Under Indonesian law, a fixed-term employment agreement is valid for a maximum of two years, can be extended for one year and can be renewed for a maximum two years. Based on the above, the maximum validity of an RPTKA seems to become two years.
  • Moreover, it seems that an Indonesian employment agreement will become necessary for Directors and Commissioners, and foreign workers applying for a short-term work permit.

Limited Stay Permit (ITAS)

A combined application for “Telex Visa” (VITAS (limited-stay visa) with telex approval) , ITAS (limited stay permit) and MERP (multiple-exit re-entry permit) will be submitted together with the “notification”.

  • Either all three issued documents can be collected, and biometrics provided, at the consulate (if available); or the Telex Visa can be collected at the consulate and ITAS and MERP can be collected, and biometrics provided, at the airport or seaport on arrival in Indonesia.
  • It is likely that the preparation of biometric facilities at consulates and airports may take significant time to implement, and that biometric sessions at airports may lead to extended waiting times on arrival.

Our Advice

Stay tuned for further details of the implementation of these new regulations as they are released.

For general advice and information on business travel and immigration to Indonesia, please email us at [email protected]