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The government has issued Presidential Regulation No. 20 of 2018 concerning the Use of Foreign Workers (“ PR 20/2018 “). Following this regulation, Presidential Regulation No. 72 of 2014 concerning the Use of Foreign Workers and Implementation of Education and Training for Companionary Workers is declared invalid. PR 20/2018 has two implementing regulations, namely the Minister of Manpower Regulation No. 10 of 2018 concerning Procedures for the Utilization of Foreign Workers (“ MMR 10/2018 “) and the Minister of Law and Human Rights Regulation No. 16 of 2018 concerning Procedures for Giving Visas and Residence Permits to Foreign Workers (“ MoLHR 16/2018 “). Through these three regulations, the process for obtaining Foreign Worker Utilization Permit becomes integrated in which the application can be submitted quickly, even without face to face process.

The changes contained in the regulations are as follows:

    1. Recommendations from technical agencies are no longer needed to obtain Foreign Worker Utilization Permit.
    2. Requirements such as the Trading Business License (“ SIUP “) and similar licenses are abolished and sufficiently replaced by the Business Registration Number (“ NIB “).
    3. Foreign Worker Utilization Permit is legalized by the Ministry of Manpower through the ratification of the Foreign Worker Utilization Plan (“ RPTKA “) and the issuance of Notifications from the Ministry of Manpower.
    4. RPTKA has no expiry date.
    5. RPTKA is sufficiently validated once and changes in RPTKA are permitted. RPTKA changes must be made in the event of a change in:
      1. address of Foreign Workers (“ TKA ”) Employers;
      2. name of TKA Employer;
      3. positions that will be occupied by foreign workers;
      4. the need to utilize foreign workers;
      5. the period of utilization of foreign workers;
      6. the number of foreign workers in which it exceeds the number of foreign workers in the initial RPTKA; and
      7. appointment of Indonesian workers as companions of foreign workers.
    6. TKA employer could employ TKA who are employed by other TKA employer in the positions:
      1. Director or commissioners who are not shareholders; or
      2. Certain sectors included the vocational education and training sector, the digital economy sector, and oil and gas sector for contractors of cooperation contracts.
    7. There is no more issuance and extension of foreign worker utilization permit because the approval for this permit is simply through notification in the Ministry of Manpower system.

In addition to the changes previously explained, a significant change occurs in the process of applying for Foreign Workers Utilization Permit because in this process the systems of both the Ministry of Law and Human Rights and the Ministry of Manpower are integrated. The followings are the process of applying for Foreign Worker Utilization Permit:

No.

Steps

Descriptions

1.

The Employer submits an RPTKA application

Employers must upload all documents needed for RPTKA approval

2.

RPTKA legalization

·     If documents are complete, RPTKA is legalized; and

·     RPTKA legalization is carried out no later than 2 working days after application.

3.

Application for the use of foreign workers

·     The employers submit applications for the utilization of foreign workers (“ Notification ”).

4.

Issuance of Notifications

·     Notifications are issued no later than 2 days after the notification request is submitted.

·     This notification is the basis for application of Vitas and Itas at the Directorate General of Immigration, Ministry of Law and Human Rights.

5.

Payment of the Compensation Fund for the Utilization of Foreign Workers (“ DKP-TKA “)

·     1 day after the notification is issued, the DKP-TKA must be paid to the receiving bank

·     Every month, employers must pay 100 USD for each TKA employed.

The entire process is carried out through the TKA Online website (www.tka-online.kemnaker.go.id) or through OSS System (www.oss.go.id). For employers who do not have an NIB, they can do the process through TKA Online. Whereas, for employers who already have an NIB, they can carry out the process through the OSS System.

 

ADCO Law earns the trust to represent clients from multinational companies to emerging entities across a wide range of industries to achieve their business objectives in Indonesia.

By combining commercial sensibilities and legal expertise, ADCO as a  Law Firm Jakarta  assists the clients to structure, organize and implement their business ventures and investments, including structuring, financing and securing investments as well as establishing new foreign companies in Indonesia. Should you have more queries regarding this matter, please do not hesitate to contact us.

Dendi Adisuryo
dendi.adisuryo@adcolaw.com

Liza Mashita
liza@adcolaw.com

@2020 ADCO Law. All rights reserved.
This publication has been prepared by Aditya Yudhistira for general informational purposes only to provide clients with information on recent legal developments and is not intended as legal advice or opinion.