The Easier Steps in Hiring Expatriates

“A New regulations concerning the Use of Foreign Workers; Presidential Regulation of the Republic of Indonesia Number 20 of 2018 (“Perpres No. 20/2018”) and the Ministry Regulation No. 10 of 2018  (“Permenaker No. 10/2018”); giving at least three (3) advantages for Company who plan to hire a foreign workers, such as: 1. Getting RPTKA in two working days, 2. No more need IMTA, just a Notification for a DP-TKA payment, 3. The Director or Commissioner who also as a Shareholder of the Sponsor Company is not Mandatory having RPTKA.”

Whereas to support the national economy and expand employment opportunities through increased investment, it is necessary to re-regulate the licensing of the use of Foreign Workers so that the Indonesian Government issues Presidential Regulation of the Republic of Indonesia Number 20 of 2018 (“Perpres No. 20/2018”) and the Ministry Regulation No. 10 of 2018 (“Permenaker No. 10/2018”) concerning the Use of Foreign Workers.

Perpres No. 20 of 2018 also the Permenaker No. 10/2018 shows that the Government provides convenience in hiring Foreign Workers and accelerates the process of publishing documents. Here are three steps for hiring expatriates in Indonesia:

  • Getting RPTKA in Two [2] working days

Article 2 Perpres No. 20 of 2018 accelerates the process of publishing documents, namely for RPTKA (Expatriate Utilization Plan/Rencana Penggunaan Tenaga Kerja Asing) ratification and RPTKA changes issued by the Minister or appointed official no later than 2 (two) days after the complete application is received, this certainly makes the process of employing Foreign Workers faster. The same thing regulated on the article 11 paragraph (7).

Moreover, exclusively for the national priority project, the RPTKA could be issued by the Authorities within one working days since the required documents already completed.

  • No Need IMTA, just a Notification

After obtaining the RPTKA endorsement, do the notification and payment of the Compensation Fund for the Use of Foreign Workers (“DKP-TKA”) by the employer, then the employer/ foreign worker can apply for a Limited Stay Visa (“Vitas”) by attaching a notification and proof of DKP-TKA payment.

Perpres No. 20/2018 and Permenaker No. 10/2018 is no longer regulates explicitly IMTA (Izin Mempekerjakan Tenaga Kerja Asing/ Expatriate Working Permit Letter). The regulations only mentions the existence of a notification for payment of compensation funds to be submitted by the Minister of Manpower after the Sponsor Company provides personal data on foreign workers. Whereas, in the previous regulation, the compensation fund (known as DPKK, Mandatory Skill Development Fund) is paid at the time of submission of IMTA after obtaining the billing code from the Ministry of Manpower.

Moreover, Permenaker No. 10/ 2018  also mentioned the DPKK obligation is an exception for Director or Commissioner who also as a shareholder of the Company, the government agency, the representative of the foreign country, and international bodies as well as institutions in conducting social and religious activities, and too certain occupations in the field of education.

  • The Director or Commissioner who also as a Shareholder of the Sponsor Company is not Mandatory having RPTKA

According to Article 10 Perpres No.20/2018 and the article 10 Permenaker No. 10/2018, the shareholder who also holds position as a Director or Commissioner is not required to hold RPTKA. In addition, RPTKA is also not mandatory for the employer who employs diplomatic and consular employees as well as foreign worker in certain tyoe jobs that required by the Government. For example, the technical assistance, in a cooperation between the Country and the International Agency, national priority project, and handling a natural disasters.

Moreover, the government agency, the representative of the foreign country, and international bodies are also included that are not required to have RPTKA in employing the foreign worker. It is mentioned explicitly in Article 16 paragraph (1) of Perpres No.20/2018.

 

YLP CONSULTING

Your Legal Partner for formalities and corporate secretarial services. Focus on Company Establishment and Representative Office, Indonesian Mixed Marriage Assistance, and Expatriate Work Permit also the Business Visa’s.

We are committed legal expert providing you with a stress-free experience. Speak with us now to solve your legal matters.

For further information, contact us: +62 812 1111 8608 | info@ylpconsulting.com | www.ylpconsulting.com

 

 

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