Ministry ry of Manpow power er of the the Republ blic of Indonesi nesia a Directorate General Development of Employment Placement and Employment Expansion Director orate ate Control olling ng of Foreign gn Worker er Utilizati ation on
PR PRES ESIDE DENT NTIA IAL L RE REGU GULA LATI TION ON 20 OF OF 20 2018 On Foreig ign n Worker er Utilizat izatio ion Minis nistry ry of Manpow npower er of Repub public lic of Indo done nesia ia Directorate General Development of Employment Placement and Employment Expansion Cont ntrolling olling of Fore reign ign Work rker Utiliz lizat ation ion
PR PRESIDENTIAL ESIDENTIAL REG EGULATIO ULATION N 20/2018 /2018 AT GL T GLANCE ANCE 1. 1. Impr provi oving ng Compet mpetitiv itiveness ness • Indonesi nesian n competitiveness petitiveness level vel is still below ow the avera rage ge than ASEA EAN count ntri ries es as follow ows: Singapore Malaysia Thailand Brunei Darussalam Vietnam • Improving competitiveness through: Deregulation and debureaucracy Simplifying the Procedures Simplifying the scheme using integrated online system I mplementing “ ease of doing business ”
FOREIGN WORKER UTILIZATION IN PRINCIPE 1. Foreign worker utilization must prioritize local workers in all occupational level 2. The scope of Foreign Worker Utilization • Sponsorship • Certain position • Certain time • Domestic labour market consideration
MINISTE INISTERIAL RIAL REG REGULA ULATIO TION N 10 OF 10 OF 2018 2018 MINIST MINISTER ER OF MAN OF MANPO POWER WER on n Pr Proc oced edur ure e of of F For oreig eign n Wor orker Util er Utiliz ization tion Ministry ry of Manpow power er of Republ blic of Indones onesia a Director General Development of Employment Placement and Employment Expansion Director orate ate Control olling ng of Foreign gn Worker er Utilizati ation on
SIMPLIFICATION PROCEDURE OF FOREIGN WORKER UTILIZATION (FWU) No. Comparison Item Ministerial Regulation Ministerial Regulation 16 jo. 35 of 2015 10 of 2018 1 FWU Permit Work Permit issued as IMTA ( Izin Work Permit issued as RPTKA Mempekerjakan Tenaga Kerja ( Rencana Penggunaan Tenaga Asing ) Kerja Asing ) 2 FWU Approval RPTKA and IMTA RPTKA and Notification Duration of Service 6 Days 4 days 3 RPTKA : 3 days RPTKA : 2 days • • IMTA : 3 days Notification : 2 days • • 4 Other Institution Recommendation is needed None Recommendation Requirement and prohibition to • be established by ministerial decree 5 Form of Services Semi Online Online • • Partially integrated system Fully integrated system • • 6 RPTKA Validity 1 year, extendable As per contract/ work agreement
No. Comparison Item Ministerial Regulation Ministerial Regulation 16 jo. 35 of 2015 10 of 2018 7 Director/commissioner : Work Permit NOT Required a. Shareholder Work Permit Required • For investor • Not in working relationship b. Non Shareholder Work Permit Required Work Permit Required No Obligation to facilitate Employer is obligated to facilitate 8 Course of Bahasa 9 Dual Occupation Restricted to Director/Commissioner 1. Director or Commissioner 2. Certain sectoral position as follows: • Education and Vocational Training • Oil and Gas (KKKS) • FinTech RPTKA issued at the time as arrival RPTKA issued 2 days at the latest 10 RPTKA in case of Emergency post-arrival
EMPLOYER ’ S OBLIGATIONS 1 5 Obtained Foreign Appoint Worker Utilization Indonesian worker Plan (RPTKA) as counterpart. 6 2 Implement the Contribute the education and Compensation training Fund (DKP-TKA) programs EMPLOYER ’S 3 Ensure the 7 Facilitate the OBLIGATIONS foreign worker course of Bahasa registered on Indonesia for the health insurance foreign worker. program 4 8 Employer must Ensure the foreign report the utilization worker registered on program to Minister National Social or appointed official Security program annually.
THE FOREIGN WORKERS UTILIZATION Foreign Workers Utilization is a certain-time-and-certain-position working relationship; Personnel affairs (and certain positions) are prohibited for expatriate in accordance with prevailing laws and regulations. Prohibition (negative list) and Certain Positions which are allowed (positive list) for expatriate shall be established by the Minister
TYPE OF RPTKA (EXPATRIATE EMPLOYMENT PLANNING)
SUBMISSION OF THE RPTKA 1 2 Fill in : Upload : Employer’s detail identity Work Agreement or Employment Number of Indonesian workers Agreement Plan; employed; Organizational Structure Chart; Annual plan of Indonesian labor Statement letter of Counterparts absorption; Appointment; Annual foreign workers utilization plan Statement letter of implementation of according to the work agreement or education and training for Indonesian employment agreement; worker; Counterpart’s detail; Statement letter for Emergency and and reasons of utilize expatriate Urgent situation . purposes.
APPROVAL OF RPTKA 1. RPTKA approval : a. Director: for less than 50 (fifty) expatriate(s) b. Director General: for more than 50 (fifty) expatriate(s); 2. Approval of RPTKA consist of : a. Number and date of approval; b. Name and address of the company/employer; c. RPTKA included: 1) type of position and number of expatriate employed; 2) work location and length of utilization; 3) number of counterpart; 4) expatriate’s amount of salary. d. Annual plan of Indonesian labor absorption; e. Validity period of the RPTKA.
EXCEPTIONAL (RPTKA) 1.Goverment agencies/institutions, 2.Representatives offices of foreign countries, 3.International organisations; 4.Board of director, board of commissioner, and members as shareholders in accordance with prevailing laws and regulations.
EMERGENCY RPTKA Arrangement: at the latest 2 (two) days during the expatriate employed, should apply for RPTKA to the Director General or Director using online system. Once completed, Director General or Director shall issued the RPTKA within 1 (one) working day. RPTKA in terms of emergency and urgent situation issued for a maximum period of 1 (one) month and non-extendable.
SHORT-TERM RPTKA RPTKA is granted for : Work related to the Conducting Audit, product quality installation of machinery, Commercial film making which has controlling , or inspection on Impresario or entertainment received permission from the branch-companies in Indonesia electrical, after sales service, business. authorized institution ; for a period of more than 1 (one) or products during the month ; business assessment; “RPTKA approval for short-term issued for maximum period of 6 (six) months and non-extendable ”
AMENDMENT OF RPTKA
NOTIFICATION Approval of the foreign workers utilization issued by the Director General Development of Employment Placement and Employment Expansion as the legal basis of ITAS (Limited Stay Permit) issuance Period time of Notification based on Work Agreement Employer required to pay the compensation fund up to 1 (one) day Director General of Immigration using Notification as the legal basis of VITAS (Limited Stay Visa) issuance Application for the Notification accessible at: tka-online.kemnaker.go.id
NOTIFICATION REQUIREMENTS Fill up a form: Upload document(s): 1. Referral code and location of the 1. Expatriate document: Representative offices of the Republic of • education certificate; Indonesia; • working experience certificate or competence; 2. Expatriate detail: • photograph; • name; • proof of polis insurance; • date and birth place; • draft of contract/work agreement; • sex; • affidavit of appointed Indonesian worker as • marital status (married/widow/single); counterpart; • nationality; • expatriate passport; • passport; • accounts / savings of expatriate or employer; • education background; 2. Employer document: • address and postal code; • application letter to Director General or Director; • e-mail; • application letter to Director General of • mobile number; Immigration for the submission of Vitas (Limited • phone number; Stay Visa); 3. Expatriate occupation: • guarantee statement from employer of • occupation and Indonesian standard expatriate; classification code; • employer’s identity number; • occupational levels; • approval letter Rp0,00 (zero rupiah). • working period.
EXCEPTIONAL FOR NOTIFICATION Notification is exceptional to those who are : Shareholders who serve as members of Board of Directors / Board of Commissioner in accordance with prevailing laws and regulations. Diplomatic official Consular
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