the Indonesian Ministry of Manpower has recently caused panic and demoralization among companies hiring expatriates. All this was a result of the drastic change of the rules set out in the Ministerial Regulation, No. PP. 16 2015 from June 29, 2015.
A new regulation of the mark applied immediately and without appropriate pre-announcements. The most widely felt the result was "ten to one" rule, indicating that companies must hire ten Indonesian counterparts for each expatriate employee. Also distressing was the new situation that every single visitor to the company, in addition to normal business visa, necessary to have a work permit. Very disturbing was that all directors and non-residents Commissioners needed a work permit, even if they were not planning to come to Indonesia.
The expatriate community was stunned and could not accept this new decision, which was quite the opposite of the policy of the Government chaired by Joko Widodo, to make it more attractive for Indonesia foreign investors. As befits an expatriate in a foreign country, complaints were made quietly and without any rumor. Remarkably fast, the Indonesian government has listened to the sounds of silence and came with a quick review of PP not. 16 of 2015.
Latest news
In accordance with the Ministerial Regulation No. PP. 35 of 2015 issued by the Indonesian Ministry of labor on October 23, 2015 , the following main changes were adopted:
- For foreign visitors business travelers, the company does not need to process a work permit anymore, so no not RPTKA and IMTA. The business visa is back in power
- Non-Resident Commissioners (BOC) and Directors (BOD) of the company does not need a work permit, so no RPTKA and no IMTA
- Only a Indonesian counterpart is required per employee expatriates. This means canceling the 1:10 from abroad to local employees;
- The conversion of Dollar Rupee has been removed for payment DPKK, so that payment can still be made in USD currency
- The foreign workers do not need to speak Indonesian, despite recent articles in many newspapers saying differently
However, a temporary IMTA and RPTKA are necessary for certain types of temporary work as conducting audits, producing a commercial film that has received an authorization of agencies and relevant work related to the installation of machinery, electrical, aftermarket services, or products that are in the exploration stage of the business.
To be complete and in an attempt to remove the fear of many companies, following an overview of the documents necessary for normal business and the requirements of the expatriate to be sure that he / she can legally work in Indonesia.
The company needs a Job Plan of foreign workers (RPTKA)
These are the common requirements or documents necessary for normal RPTKA for a workstation that is open for expats:
- a letter stating the reasons to hire expatriates and for which specific position
- application form RPTKA of
- companies deed of establishment, ministerial approval and adjustments
- Company (released) the capital must be at least Rp.1,000,000,000
- the standard business documents: LOD, NPWP, TDP and SIUP (IUT or for a PMA PT)
- Organisation chart company
- a letter of recommendation from a technical ministry (eg education, transport, oil 7 Gas, Mining) (not required for a commercial company or normal board)
- one employee Indonesian counterpart (not necessary for directors and commissioners)
- an education and training program for Indonesian counterpart
- the WLK, an annual report indicating the number of expatriates and local employees
be advised that
- positions as HR managers, farm workers, fabric workers, bus drivers, tour guides and similar jobs are not permits for expatriates. More technical, financial, commercial and research and development positions are usually granted
- Positions for directors and commissioners are almost always accepted
- A service company will get only six months where construction company or an international organization, the school will receive a valid RPTKA a year or two
eXPAT the needs of work permit or IMTA
for an IMTA, the expatriate must present the requirements and the following documents:
- relevant education for the job he / she wants to maintain
- a certificate or work experience of at least five years in relation to the position
- a statement to transfer his / her knowledge to Indonesian counterpart
- a copy of the employment contract of the Indonesian colleague
- a tax identification card (NPWP) (if working more than six months)
- an insurance policy issued by an insurance company incorporated in Indonesia
- a national social security policy (if working more than six months )
- the receipt of payment DKP-TKA (a sort of tax of $ 1200 per year)
- the approval of RPTKA (see above)
- a copy of passport, showing that he / she is 25 years or more and not more than 55 (for oil and gas) and 60 (for teachers)
- Two color photographs 4 × 6 size
- a letter of recommendation from a technical ministry (if applicable)
- directors and commissioners do not need to meet the requirements 1-4
be advised that
- only if the documents are complete and submitted, the application will IMTA (almost automatically) be approved
that can be said or concluded is that indeed a large number of documents are required, but the process is clear and transparent.
If the company and the expatriate have all the right documents, they can try to make the whole process for RPTKA and IMTA is following all the steps mentioned on the department website of Manpower of http://naker.go.id work
If this does not work, go to a formalities officer.
Given the evolving requirements because of different policies, this article means any guarantee for the near future.