17 February 2020 (closed)
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Companies abroad often wish to use third parties which can act as sponsor company for their expatriates in Indonesia. The use of third party sponsor companies is allowed under certain conditions for both long term work permits and short term work permits. In this column we discuss the specific requirements set by the Ministry of Manpower for the use of third party sponsor companies for expatriates in Indonesia. The requirements are not set in regulations but are based on internal policies used by the Ministry of Manpower.
Requirements for Third Party Sponsor Companies of Expatriates
For a third party company to become a sponsor company of an expatriate must at lease fulfill the requirements set out below.
- The third party company which is sponsoring the work permit must be in the possession of a business license which is in line with the work activities of the expatriate
- The Expatriate will hold a job title as Adviser in the sponsor company; and
- There must be a cooperation agreement between the company hiring the expatriate and the sponsor company. Such agreement must regulates the cooperation between both parties for one specific project. We recommend that such agreement at least should contain the following provisions:
- Name of the parties in the Agreement;
- Scope of works of both parties;
- Responsibility of both parties, which includes:
- the obligation of the sponsor company to provide expatriates to the hiring company;
- the responsibility of the sponsor company toward the expatriates;
- There must be a cooperation agreement between the sponsor company and the customer for which the expatriate is working. This agreement has a similar contents as the contents of the agreement as mentioned in point 3 above.
The work permit which is issued based on the above construction can be either a short term work permit (6 months or shorter) or a long term work permit (7 – 12 months).
This column is provided by PNB Immigration Law Firm Indonesia