Foreign Worker Permit

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Representative Office in Indonesia
February 9, 2015
SMART Legal Consulting
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Before discussing foreign worker permit, it is better to find out who is foreign worker. Based on Article 1 number 13 of Law No. 13 of 2003 on Manpower (“Law 13/2003”) it is stipulated that a Foreign Worker is a foreign citizen who holds a visa with an intention to work in Indonesia’s territory.

An employer who wants to employ a foreign worker must previously acquire a written permit from the Minister or an official who is appointed to issue the foreign worker permit. An employer who will use a foreign worker can be:

  1. Government institutions, international bodies, foreign state’s representatives;
  2. Representative office of foreign chambers, representative office of foreign companies, representative office of foreign news;
  3. Foreign private companies;
  4. Legal entities which are established based on Indonesia’s laws or foreign business entities which are registered in authorized institution in Indonesia;
  5. Social, religious, educational, and cultural Institutions;
  6. Entertainment organizer (impresariat) business services.

For an employer of foreign worker that are not mentioned above, an employer of foreign worker which is in a form of civil association, firm, limited partnership, and business partnership is prohibited to employ a foreign worker unless stipulated otherwise by the Laws and Regulations.

An employer who is going to use a foreign worker must carefully look at the position of the foreign worker, because there are certain positions which are prohibited to be filled by a foreign worker and competency standard applies. For this reason the employer of a foreign worker must:

  1. Appoint an Indonesian citizen worker as a foreign worker companion who is hired for the purpose of technology transfer and skill transfer from the foreign worker;
  2. Implement job education and training for Indonesian worker as mentioned in letter a which is suitable with qualification of the position which is filled by the foreign worker.

The foreign worker who will be recruited by an employer must fulfill requirements which are determined by the prevailing laws. A foreign worker who is about to work in Indonesia must fulfill the following criteria:

  1. Has an education background that is suitable with requirements of the position which will be filled by the foreign worker;
  2. Has a competency which is proven by a competency certificate or at least 5 years of working experiences which are suitable with the position that will be filled by the foreign worker;
  3. Willing to make a statement to transfer his/her knowledge to his/her Indonesian worker companion (education background of the companion is suitable with the position which will be filled by the foreign worker); and
  4. Able to communicate in Indonesian language.

The above mentioned requirements can be excluded for a foreign worker who is hired for a job with a position of Commissioner, Director, Entertainment Organizer Business Services, and work which is temporary in nature.

An employer who will hire a foreign worker must own a foreign worker permit. A foreign worker permit is a permit which must be owned by a foreigner who is about to work in Indonesia in accordance with the prevailing laws. To acquire the foreign worker permit there are several processes which must be passed previously and documents which must be prepared. The following are the steps that must be taken for the arrangement and documents which must be prepared in order to acquire a foreign worker permit, which are as follows:

A. Foreign Worker Utilization Plan (RPTKA)

RPTKA is a plan to use foreign worker in a certain position which is created by employer of the foreign worker for a certain period which is approved by the Minister or an appointed official. For an employer who is planning to use the services of a foreign worker, the RPTKA became a ground for the issuance of Foreign Worker Work Permit (IMTA).

In general RPTKA can be given to an employer for 5 (five) years at the longest and can be extended for the same period taking into consideration of domestic employment market conditions. In certain conditions RPTKA can be given in a short period and cannot be extended depending on the characteristic and type of work which is required by the employer.

RPTKA can be given RPTKA for work which is temporary in nature, in another words for work which its characteristic is can be finished at once or type of work such as installation of engine, electricity or type of work which can be finished at once, this RPTKA can be given for a period of 6 months.

RPTKA for work which is emergency in nature can be given for a period of 1 (one) month and cannot be extended.
To acquire a RPTKA approval, an employer must submit a written application to the Director General of Manpower Development and Placement of the Ministry of Manpower and Transmigration. This RPTKA application at least consists:

  1. Reason to use foreign worker;
  2. Position and/or function of the foreign worker in the company’s organization structure;
  3. Usage period of the foreign worker;
  4. Appointment of Indonesian citizen worker as a companion of the foreign worker which is hired.

Documents which must be attached in the application are as follows:

  1. Reason to use a foreign worker;
  2. RPTKA form which has been filled;
  3. Business Permit Letter from an authorized institution;
  4. Deed of Establishment as a legal entity which has been ratified by an authorized institution;
  5. Company’s Certificate of Domicile from the local government;
  6. A chart of the Company’s Organization Structure;
  7. Letter of appointment of Indonesian citizen worker as a companion of the foreign worker and plan of companionship program;
  8. A statement letter on ability to implement job education and training for the Indonesian worker in accordance with the qualification of position which is filled by the foreign worker;
  9. A copy of proof of mandatory manpower report which is still valid in accordance with Law No. 7 of 1981; and
  10. Position recommendation which will be filled by the foreign worker from technical institution if necessary.

If the documents are complete in the RPTKA application, the RPTKA arrangement period can be conducted within 7 business days.

B. Foreign Worker Work Permit (IMTA)

Summited to the Director General of Manpower Development and Placement of the Ministry of Manpower and Transmigration

After the RPTKA is acquired, the employer who hires the foreign worker must acquire a Foreign Worker Work Permit (IMTA). IMTA is a written permit to hire a foreign worker from the Minister or an official who has been assigned to issue the permit for an employer of foreign worker.

An employer submits IMTA application to the Director General of Manpower Development and Placement of the Ministry of Manpower and Transmigration. However prior acquiring IMTA the employer must submit the following application:

a. Visa Wire Approval Recommendation (TA.01)

After the RPTKA is acquired, an employer is ready for arranging Visa Wire Approval Recommendation (TA.01). TA.01 Visa is a wire recommendation for visa approval for a foreign worker who is about to work in Indonesia to work.

The TA-01 application is submitted to the Director to acquire (TA-01) visa recommendation.

  1. A copy of decree letter on RPTKA approval;
  2. A copy of passport of the foreign worker who is about to be hired;
  3. A Curriculum Vitae of the foreign worker who is about to be hired;
  4. A copy of diploma and/or declaration on working experience of the foreign worker who is about to be hired;
  5. A copy of appointment letter of the companion worker;
  6. One sheet of color passport photo size 4×6 cm.

If the application has fulfilled these requirements, the related institution must issue the (TA-01) recommendation and deliver it to the Director of Immigration Traffic (Lantaskrim), Directorate General of Immigration at the latest on the following day by sending a copy to the employer. The TA.01 recommendation which has been approved become a ground for the issuance of Limited Resident Visa (VITAS).

The Arrangement Period

If the documents for the TA.01 application are complete, the arrangement can be conducted within 7 business days.

b. Limited Resident Permit (VITAS)

After the TA.01 application is approved, the employer can submit an application for a Limited Resident Permit (VITAS) for the foreign worker who is hired. VITAS is a permit which must be owned by a foreign worker who is about to stay in Indonesia.

VITAS application is submitted to the Director General of Immigration of the Ministry of Law and Human Rights by attaching:

  1. A letter of guarantee from a Guarantor/Sponsor;
  2. A copy of nationality passport;
  3. Proof of having living expenses for himself/herself and/or his/her family as long as she/he is located in Indonesia’s territory;
  4. Letter of recommendation from government body or institution related with activities that are going to be conducted by the foreign worker; and
  5. Information about the Guarantor/Sponsor.

In the event that VITAS for a foreign worker to work in Indonesia is approved by the Directorate General of Immigration than the Directorate General of Immigration issues a notification letter about the granting of visa approval.

The Arrangement Period

If the required documents are complete, arrangement of VITAS can be conducted within 7 business days.

After TA.01 recommendation and VITAS for a foreign worker are acquired, the employer of a foreign worker can submit an IMTA application. This application must be submitted by attaching at least.

  1. A copy of employment contract;
  2. Proof of payment of compensation fund for foreign worker usage through a government’s bank which is appointed by the Minister;
  3. A copy of insurance policy;
  4. A copy of notification letter regarding approval to grant a visa;
  5. Two sheets of color passport photo size 4×6 cm.

In the event that these requirements have been fulfilled, the Director of Foreign Worker Utilization Control issues IMTA. Validity period of IMTA is given at the longest 1 (one) year and can be extended. After IMTA is acquired, the employer may use the services of the foreign worker.

The Arrangement Period

If the required documents are complete, the arrangement of IMTA can be conducted within 7 business days.

Legal Ground:

∞ Law No. 13 of 2003 on Manpower (“Law 13/2003”)
∞ Minister of Manpower and Transmigration Regulation No. 12 of 2013 on Procedures for Using Foreign Worker (Permenakertrans 12/2013)
∞ Minister of Law and Human Rights Regulation No. 27 of 2014 (“Permenkumham 27/2014”)
∞ Minister of Manpower and Transmigration Decree No. 40 of 2012 (“Kepmenakertrans 40/2012”)

HOW CAN SMART LEGAL CONSULTING HELP YOU?

SMART Legal Consulting has extensive experience in helping employers to ensure that their hired expatriates acquire work permits in order to work in Indonesia, and to maintain such permits to be updated so that they do not lose their validity.

If you need immediate assistance, please contact the SMART Help Desk at:

E:  info@smartcolaw.com

H: +62821-1234-1235

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