New Procedures for the Use of Foreign Workers in Indonesia issued by the Regulation of the Minister of Manpower of the Republic of Indonesia Number 10 of 2018
MOM Regulation 10/2018 revokes MOM Regulation Number 35/2015 and MOMR Number 16/2015 regarding the procedures for the use of foreign worker. MOM Regulation 10/2018 is an implementing regulation of the Presidential Regulation 20/2018.
Only the following Employers can employ foreign workers, there are limited lialibility companies, Foundations, foreign trade representative office, foreign business entities registered with the authorized institution in Indonesia, social, religious educational and cultural institutions, and other business entities as long as they are not prohibited under Indonesian laws from employing foreign workers.
Foreign Workers Placement Plan “RPTKA”, is the corporate licence that specifies the job titles of foreign worker, the number of foreign worker in company and the duration of their assignment in Indonesia and is valid for a maximum period of one year. Its no longer necessary to invoke the recommendation from related ministry or government institution to employ the foreign workers.
MOM Regulation 10/2018 states the general requirements for the Foreign Worker to get a work permit in Indonesia :
- A certificate of competence, or five years working experience related to the position;
- An education related to the position you are going to take up in Indonesia;
- An Indonesian Taxpayer registration number (NPWP) for expatriates who have worked in Indonesia for at least 6 months;
- A temporary stay permit issued by the relevant institution;
- Transfer their expertise to the Indonesian companion employee.
Only to foreign workers who are the members of a board of commissioners or board of director and own shares in the company domiciled abroad no longer require a work permit. Moreover, they are not required to make the payment to the Manpower Skill and Development Fund (DPKK/DKP-TKA) of USS100 per month.
Following the regulation of MOM Regulation 10/2018, every application of RPTKA and Notification will be fully integrated under an online service, that is jointly integrated among all the related ministry or government institution. After companies have received the RPTKA of the foreign worker, they must apply fo a Notification, which is essentially a replacement of the IMTA.
The employers who employ the foreign workers must input and upload all the legal document what is needed.
|Input data :
The identity of the employer, the identity of the foreign worker, the number of Indonesian workers, the identity of the Indonesian companion employee, the number of the Indonesian workers permentation plan every year concordant with the employee agreement and the excuse to employ the foreign workers.
|Upload data :
The legal document about the employee agreement layout,organization structure scheme, the allegation letter about appointment to the companion employee, the allegation letter for provide the work education and training to Indonesian companion employees , the allegation letter from the employers in case for an emergency work permit.
The expatriate work permit (IMTA) under the previous regulation is no longer required under MOM Regulation 10/2018. With employers no longer required to apply for an IMTA, the application process takes about four days now. Previously it took about six days to issue the RPTKA and IMTA.
The employers must facilitate Indonesian language training for the expatriate for the transfer of skills and technology for the Indonesian companion employees.
Employers that fail to submit with MOM Regulation 10/2018 will be subject to various administrative sanctions including revocation of the Notification, delay in government services, temporary suspension of the employer’s ability to process expatriate applications, and other sanctions under Indonesian regulations.
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