Expatriates working in Indonesia are referred to as foreign workers in Indonesian Law number 13 of 2003 regarding Manpower (Labor Law). A foreign worker is defined as a visa holder with foreign citizenship, who has the intention to perform work in Indonesia. Both expatriates working in Indonesia and the companies employing such expatriates are subject to permitting requirements and restrictions set by the Indonesian Government. In this column we provide an overview of the general licenses needed to employ foreign workers.
Ministry of Manpower Authorization: Foreign Manpower Utilization Plan (RPTKA)
According to article 5 and 6 of Minister Regulation 12 of 2013 regarding Procedures for the Use of Foreign Manpower (Minister Regulation), employers which hire foreign workers must obtain a Foreign Manpower Utilization Plan (RPTKA), which has been authorized by the Minister of Manpower.
There are several types of RPTKA:
1. A general RPTKA, which is provided for a period of maximum 5 years and may be extended;
2. A RPTKA for work with a temporary nature, which is provided for a period of maximum 6 months and cannot be extended. Work with a temporary nature includes work which is completed at certain point in time, and work associated with the installation of machinery, electrical sales, service, or trial products;
3. A RPTKA for emergency work, which is provided for a period of maximum 1 month and cannot be extended. Emergency work is urgent work which, if not treated immediately, can result in fatal losses to the company and/or to the general public;
4. A RPTKA for work in Special Economic Zones. For this RPTKA no specific time restriction is stated. A Special Economic Zone is the area which is set to hold special economic functions and certain facilities.
5. A RPTKA for impresario service businesses. For this RPTKA no specific time restriction is stated. Impresario service business is the management of the organization of amusement activities in Indonesia.
Minister of Manpower Authorization: Approval Recommendation Visa
After having obtained the RPTKA, companies need to arrange Approval Recommendation Visa (TA01). According to Article 30 (1) Minister Regulation, TA01 is used to arrange Work Permit (IMTA). TA01 is also needed to obtain a Working Visa for the expatriate in the Directorate General of Immigration of the Republic of Indonesia. TA01 is only used for a new work permit. For a renewal of the work permit, the company is not required to arrange TA01. The period of TA01 is two months. If within this period the expatriate does not enter Indonesia, the company is required to send a justification letter to the Minister of Manpower to request a new TA01 or to request cancellation of the RPTKA (in the event the expatriate’s plan to work in Indonesia is cancelled).
Ministry of Manpower Authorization: Work Permit (IMTA)
After having obtained the TA-01, companies need to apply for Work Permit (IMTA). The RPTKA is used as the basis for IMTA. According to article 42(1) Labor Law jo. article 28(1) of the Minister Regulation, every company who employs foreign workers (expatriates) is required to have a written permission from the Minister of Manpower (Minister). This requirement does not apply for diplomatic and consular foreign workers. The IMTA is provided for a maximum period of one year and may be extended in accordance with the validity period of the RPTKA each for periods of maximum one year. For directors and commissioner there is an exception, their IMTA may be extended for a maximum period of two years.
There are several types of IMTA:
1. A general IMTA, which is provided for a maximum period of one year, which can be extended;
2. An IMTA for work with a temporary nature, which is provided for a maximum period of six months;
3. An IMTA for emergency work, which is provided for a maximum period of one month, which cannot be extended;
4. An IMTA for work in Special Economic Zones, which is provided for a maximum period of one year, which can be extended;
5. An IMTA for work as singing host/karaoke, which is provided for a maximum period of six months, which cannot be extended;
6. An IMTP for a permanent residence permit (KITAP) holder, which is provided for a maximum period of one year, which can be extended;
Other Required Authorizations
In our next column we will explain the required Immigration and local permits which the foreign worker is required to obtain in order to work and stay in Indonesia.