Indonesia – New Regulations for Foreign Workers

What has changed

Effective June 29, 2015, the Ministry of Manpower has made changes to procedures and requirements for hiring expatriates in Indonesia. In addition, changes have also been made to the allowable activities conducted as a business visitor. A Temporary/Short Term Work Permit may now be required for activities that previously required a Business Visa only.

Who is affected?
What to expect

  • Companies looking to hire expats to Indonesia and all business travelers to Indonesia

Recent changes to procedures for hiring expats in Indonesia include:

  • Expatriate Employment Plan (RPTKA) and Work Permit for Emergency and Urgent Work will now be issued with a validity of one (1) month while RPTKA for “temporary/ short term assignments” may be granted for up to six (6) months.
  • Expats will be expected to hold at least a graduate degree and five (5) years relevant work experience to be eligible for a Long Term Work Permit. If this criteria is not met, a Short Term Work Permit may be issued without the provision for further in-country extension.
  • The ratio of an expat to a local hire is now 1:10 apposed to the previously required 1:5 ratio.This will be strictly implemented with exceptions for board members, directors, commissioners; expatriates availing emergency or short term work permits.

Additionally, some activities that previously only required a traveler to obtain a Business Visa will now require a Temporary/ Short Term Work Permit. Some of these activities include:

  • Conducting audits
  • Training
  • Giving lectures
  • Attending business meetings organized by the head office or representative
  • Installation of machinery, electrical, or after sale service

In the past foreign directors and commissioners could enter Indonesia on a Business Visa, they will also now be required to obtain a work permit.

New regulations will be strictly implemented and regular inspections may be conducted by the MOM officials. Companies will be required to provide regular reports to the authorities on the number of Indonesian workers employed, employment opportunities created, and education and training program plan implemented.

What you need to do
Planning ahead

  • Foreign nationals looking to travel to Indonesia must evaluate the activities to be undertaken and obtain a relevant Business Visa or an RPTKA and Temporary/Short Term Work Permit to ensure compliance with the new regulations.
  • It is recommended that the activities to be undertaken for each prospective applicant are reviewed before an application is made.
  • For Emergency and Urgent Work Permit, the company must be able to provide relevant justification for the urgent RPTKA and IMTA request.
  • Relevant processing times for each application must be taken into account and travel dates must be planned bearing this in mind.
  • Contact your Emigra Worldwide attorney or representative for further details on how these updates may impact you or your client.

The information above was provided by Emigra Worldwide, our global network partners, and relevant government authorities. The information herein is for general purposes only and not intended as advice for a particular matter. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work.

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