SECURING EXPATRIATE WORK PERMIT

An Overview Guide in Indonesia

“Foreign citizen which obtain Indonesian working visa with the intention to work in

Indonesia”

WHAT IS EXPATRIATE?

EXPATRIATE IN INDONESIA (Data from Ministry of Manpower

2014)

RRC22%

Japan15%

South Korea11%India

7%

Malaysia5%

Other Country39%

Expatriate Origin

RRCJapanSouth KoreaIndiaMalaysiaOther Country

TOTAL : 68.742

WORK PERMIT • RPTKA AND IMTA

EXPATRIATE WORKING PERMIT

VISA & STAY PERMIT• (WORKING VISA 312 &

KITAS)

WHO IS ELIGIBLE TO HIRE AN EXPATRIATE?

• Representative Office

• Local or International Foundation

• Non Governmental Organization (NGO)

• Limited Liability Company with paid up capital minimum of IDR 1 Billion (Local Company)

• Limited Liability Company either PMA or Local Company

• For Specific Business Sector Such As Oil & Gas or Education, required recommendation and approval first from the related Authorities

EXPATRIATE CANDIDATE?

• Have a Personal Insurance Before Entering Indonesia

• Stated in the Article of Association (For Director and Board of Commissioner Position)

• Only candidate with Bachelor Degree could apply for 1 (one) Year Period Working Permit Application

• Minimum 5 (five) Years Experience in a related field

Overview• RPTKA (Expatriate Utilization Plan, applied by Sponsor Company)• IMTA (Expatriate Working Permit, applied by Sponsor Company)• KITAS (Limited Stay Permit in Indonesia)

EXPATRIATE WORKING PERMIT

New Issues• BPJS and Tax ID (NPWP) Requirement for Working Permit (IMTA)

Extension• Local Company are forbidden to hired expatriate as Board of

Commissioner• Director and Commissioner who didn’t permanently lived in

Indonesia are not obliged to apply for IMTA • Other Permits to Secure after Stay Permit (KITAS)

Changes in Regulations• 1 Foreigner : 10 Local Ratio no longer Required• Transfer of Knowledge no longer Required (only for Board of Director

& Commissioner Position) • No requirement to be able to communicate in Bahasa Indonesia

EXPATRIATE WORKING PERMIT

Other Mandatory Permits after Securing IMTA and KITAS

• Police Report Letter (Surat Tanda Melapor)• Temporary Residence Letter (Surat Keterangan Tempat Tinggal

Sementara)• Arrival Report (Laporan Keberadaan)

• Plan Recruitment since Beginning :

• Job Position for expatriate employee• Educational and Experience Back Ground• Time Frame (Temporary Workers / Subsidiary Employees)• Determine who stays in Indonesia to run the business and

obtained KITAS• Secure Working Permit As Soon As Possible (2-3 Months before

effective date)

• Acquire all mandatory expatriate working permit

• Know the Obligation Post-issuance of working Permits, such as BPJS Registration and Tax Obligation (NPWP)

STRATEGY TO SECURE WORKING PERMITS

EXPATRIATE WORKING PERMIT

Expatriate

Utilization Plan (RPTKA)

Expatriate

Working

Permit Card

(IMTA)

Telex Vitas / Working Visa

Limited Stay

Permit (KITAS)

Police Report Letter (STM)

Temporary

Residence

Letter (SKTTS)

Arrival Report

(LK)

SMART LEGAL NETWORK

www.bplawyers.co.idwww.smartcolaw.co.id Puri Imperium Office Plaza Unit G-9

Jl. Kuningan Madya Kav.5-6

Kuningan, Jakarta Selatan, 12980

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