Client Newsflash

New Provisions on Expatriate Working Permits

On December 30, 2013, the Minister of Manpower and Transmigration of the Republic of Indonesia (“MOMT”) enacted MOMT Regulation No. 12 of 2013 on Procedure for Employing Expatriate Workers (“Regulation No. 12/2013”), which replaced the previous regulation on the same subject (“Regulation No. 02/2008”). Regulation No. 12/2013 does not make major amendments to the expatriate working permit requirements contained in Regulation No. 02/2008. However, there are some changes and additions to the types of work expatriates may perform and requirements to obtain working permits in Indonesia.

Under Regulation No. 12/2013, employers may now employ expatriates not only under limited term or emergency contracts, but also on a temporary basis, either for a one-time project, or related to machinery and electrical installation, after sales services, or market assessment of trial products. The maximum period for temporary work is 6 months, which cannot be extended.

One of the new requirements under Regulation No. 12/2013 is that expatriates must possess both relevant education and professional certification or five years relevant experience. Under Regulation No. 02/2008, the requirement was for education or professional certification/experience.

Similar to the previous expatriate working permit requirements stated in Regulation No. 02/2008, to employ an expatriate in Indonesia, the employer must obtain an approved expatriate recruitment plan (RPTKA), visa recommendation (TA-01) and expatriate recruitment permit (IMTA). To obtain RPTKA, TA-01 or IMTA, including extension periods, the employer may apply in writing or through an online system to the Director of Expatriate Worker Utilization Control (Direktur Pengendalian Penggunaan Tenaga Kerja Asing – “Director”). If the requirements are complete, the Director is supposed to issue the permits within four working days (for each permit). Extensions of RPTKA and IMTA can be processed by regional officials, depending on the geographic scope of the work.

For expatriates married to Indonesian citizens, the TA-01 for limited stay visa is no longer required.
The RPTKA can be granted for up to five years and may be extended for the same period. The IMTA is granted for one year, and extensions can be granted for one year at a time. For expatriate directors and commissioners of companies, IMTA may be extended for two years at a time.

Regulation No. 12/2013 also regulates what types of employers may employ expatriate workers. Employers in the form of government institution, international agency, foreign representative, foreign chamber of commerce, foreign representative office, foreign representative news office, foreign private company, legal entity, social, religious, educational and cultural institutions, and performing arts businesses may employ foreign workers, while employers in the form of civil partnership, firm, limited partnership (CV), and business enterprise (UD) are prohibited from employing expatriates, unless otherwise permitted by law.
Other requirements for employers and expatriates remain as under the prevailing manpower and immigration laws and regulations.

Please contact Johannes C. Sahetapy-Engel at jsahetapyengel@aksetlaw.com or Rizki H. Nugraha at rnugraha@aksetlaw.com if you need more information.


Disclaimer:
The foregoing material is the property of AKSET Law and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor should it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.


©2018 | AKSET. All rights reserved.