The employment of Expatriates in Indonesia must comply with the requirements as stipulated in Minister of Manpower Regulation No. 16 of 2015. For the Oil and Gas Industry, some of these requirements have been updated in the new regulation, Minister of Energy and Natural Resources Regulation No. 31 of 2013 (“Minister Regulation on Employment in the Oil and Gas Industry”), which was issued in October 24, 2013 and has been effective ever since.
The procedure is as follows:
Prior to submitting the application to start the above procedure, here are 3 (three) key matters that are important for Companies in Oil and Gas Industry that want to hire Expatriates to work in Indonesia:
A. Technical Recommendation
Oil and Gas is one of the industry in Indonesia that requires companies to obtain technical recommendation in order to apply for RPTKA (Rencana Penggunaan Tenaga Kerja Asing) and IMTA (Izin Mempekerjakan Tenaga Kerja Asing) and employ Expatriates in Indonesia.
The application for technical recommendation is submitted to the Directorate General of Oil and Gas. The technical recommendation must be obtained before starting the procedure at the Ministry of Manpower.
Contractors, Business Entities conducting Downstream activities, and Supporting Companies that want to hire Expatriates to work in Indonesia must ensure that the Expatriates fulfill the following requirements:
- Expatriates must have prior education related to the qualifications of the position;
- Expatriates must have prior work experience for 5 (five) years minimum related to the position they are hired for;
- Expatriates must be 30 (thirty) years old at minimum, and at maximum 55 (fifty five) years old;
- Expatriates must agree to perform transfer of knowledge and skill to the local human resources, especially the local workers assigned to partner them;
- Expatriates must fulfill all standard working competence pursuant to the position they are hired for; and
- Expatriates must be able to communicate in Indonesian, to the extent of capably performing the transfer of knowledge and skill to the local workers.
C. Prohibited Positions
Expatriates are not allowed to hold the following positions in the Oil and Gas Industry:
- Human Resources Department/HRD or Personalia;
- Health and Safety Management/HSE;
- Supply Chain Management, including positions related to Procurement, Material, and Logistics;
- Quality Control, including Inspection; and/or
- Other structural positions at the exploration and exploitation process under the Superintendent level or other structural positions equal to such.
In accordance with the Minister Regulation, the above positions must be filled by local workers. It is important for Employers to take note of such positions so that they can assign the hired Expatriates pursuant to the governing regulation.
HOW CAN SMART LEGAL CONSULTING HELP YOU?
SMART Legal Consulting has extensive experience in assisting Investors in hiring Foreign Expatriates as experts and consultants in Indonesia. We can help you structure and schedule the application for the required permits, and all other matters related to the issue.
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