INDONESIA – Upcoming Regulations for Hiring Foreign Workers
Effective 29 June 2018, the government of Indonesia has issued new regulations for hiring foreign workers.
The main changes are presented below:
Expatriate Placement Plan (RPTKA) and Work Permit (IMTA)
In certain sectors, a foreign worker will be able to work, with the same job title, for more than one employer. The sectors and job titles to which this “double employment” will apply have not yet been established. The processing time for the RPTKA and the IMTA will each take no more than two working days. 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, diplomatic and consular officers or foreign workers in jobs which are vital to the Indonesian government. It has not yet been established which jobs will qualify for this latter exemption. The RPTKA and payment of the Skill and Development Fund (DPKK) will no longer be required for government agencies, embassies and consulates, international agencies, social or religious institutions and educational institutions (for certain job titles). For urgent and emergency work (up to a maximum of one month), the employer will be able to apply for the RPTKA no more than two working days after the foreign national has started working in Indonesia, and the RPTKA will be issued within one day of submission.
Limited Stay Visa (VITAS) and Limited Stay Permit (ITAS)
Consulates will be required to issued VITAS within two working days of receipt of a complete application. Currently, this takes between three and ten working days. Consular applications for ITAS will be possible, probably only for urgent and emergency cases. This is currently not possible. ITAS will be initially issued for up to two years (currently only up to one year) and will continue to be extendable. This prolonged maximum validity may only apply in some cases. Employers will no longer be required to register foreign national employees working in Indonesia for more than six months with the Manpower Social Security (BPJS ketenagakerjaan), as long as the foreign worker holds similar insurance with a private insurance company registered in Indonesia. Employers will be required to issue a certificate of training or competence to the Indonesian counterpart worker of the foreign worker as proof of transfer of knowledge.
Stay tuned for further details of the implementation of these new regulations as they are released.