Ministry of Manpower of the Republic of Indonesia

Directorate General Development of Employment Placement and Employment Expansion

Directorate Controlling of Foreign Worker Utilization

Ministry of Manpower of Republic of Indonesia Directorate General Development of Employment Placement and Employment Expansion

Controlling of Foreign Worker Utilization

PRESIDENTIAL REGULATION

20 OF 2018On Foreign Worker Utilization

PRESIDENTIAL REGULATION 20/2018

AT GLANCE1. Improving Competitiveness

• Indonesian competitiveness level is still below the average than ASEAN

countries as follows:

Singapore

Malaysia

Thailand

Brunei Darussalam

Vietnam

• Improving competitiveness through:

Deregulation and debureaucracy

Simplifying the Procedures

Simplifying the scheme using integrated online system

Implementing “ease of doing business”

FOREIGN WORKER UTILIZATION

IN PRINCIPE

1. Foreign worker utilization must

prioritize local workers in all

occupational level

2. The scope of Foreign Worker Utilization

• Sponsorship

• Certain position

• Certain time

• Domestic labour market consideration

MINISTERIAL REGULATION

10 OF 2018

MINISTER OF MANPOWER

on Procedure of Foreign Worker Utilization

Ministry of Manpower of Republic of Indonesia Director General Development of Employment Placement and Employment Expansion

Directorate Controlling of Foreign Worker Utilization

SIMPLIFICATION PROCEDURE

OF FOREIGN WORKER UTILIZATION (FWU)No. Comparison Item Ministerial Regulation

16 jo. 35 of 2015Ministerial Regulation

10 of 2018

1 FWU Permit Work Permit issued as IMTA (Izin

Mempekerjakan Tenaga Kerja

Asing)

Work Permit issued as RPTKA

(Rencana Penggunaan Tenaga

Kerja Asing)

2 FWU Approval RPTKA and IMTA RPTKA and Notification

3 Duration of Service 6 Days

• RPTKA : 3 days

• IMTA : 3 days

4 days

• RPTKA : 2 days

• Notification : 2 days

4 Other Institution

Recommendation

Recommendation is needed None

• Requirement and prohibition to

be established by ministerial

decree

5 Form of Services • Semi Online

• Partially integrated system

• Online

• Fully integrated system

6 RPTKA Validity 1 year, extendable As per contract/ work agreement

No. Comparison Item Ministerial Regulation 16 jo. 35 of 2015

Ministerial Regulation 10 of 2018

7 Director/commissioner :

a. Shareholder Work Permit Required

Work Permit NOT Required

• For investor

• Not in working relationship

b. Non Shareholder Work Permit Required Work Permit Required

8 Course of Bahasa No Obligation to facilitate Employer is obligated to facilitate

9 Dual Occupation Restricted to Director/Commissioner 1. Director or Commissioner

2. Certain sectoral position as

follows:

• Education and Vocational

Training

• Oil and Gas (KKKS)

• FinTech

10 RPTKA in case of Emergency RPTKA issued at the time as arrival RPTKA issued 2 days at the latest

post-arrival

EMPLOYER’S OBLIGATIONS

EMPLOYER’S

OBLIGATIONS

Obtained Foreign

Worker Utilization

Plan (RPTKA)

Contribute the

Compensation

Fund (DKP-TKA)

Ensure the

foreign worker

registered on

health insurance

program

Ensure the foreign

worker registered on

National Social

Security program

Appoint

Indonesian worker

as counterpart.

Implement the

education and

training

programs

Facilitate the

course of Bahasa

Indonesia for the

foreign worker.

Employer must

report the utilization

program to Minister

or appointed official

annually.

1

2

3

4 8

7

5

6

THE FOREIGN WORKERS

UTILIZATION

Foreign Workers Utilization is acertain-time-and-certain-positionworking relationship;

Personnel affairs (and certainpositions) are prohibited forexpatriate in accordance withprevailing laws and regulations.

Prohibition (negative list) andCertain Positions which are allowed(positive list) for expatriate shall beestablished by the Minister

TYPE OF RPTKA

(EXPATRIATE EMPLOYMENT PLANNING)

SUBMISSION OF THE RPTKA

1

Employer’s detail identity

Number of Indonesian workers

employed;

Annual plan of Indonesian labor

absorption;

Annual foreign workers utilization plan

according to the work agreement or

employment agreement;

Counterpart’s detail;

and reasons of utilize expatriate

purposes.

Fill in :

2

Work Agreement or Employment

Agreement Plan;

Organizational Structure Chart;

Statement letter of Counterparts

Appointment;

Statement letter of implementation of

education and training for Indonesian

worker;

Statement letter for Emergency and

Urgent situation.

Upload :

APPROVAL OF RPTKA

a. Director: for less than 50 (fifty) expatriate(s)

b. Director General: for more than 50 (fifty) expatriate(s);

a. Number and date of approval;

b. Name and address of the company/employer;

c. RPTKA included:

1) type of position and number of expatriate employed;

2) work location and length of utilization;

3) number of counterpart;

4) expatriate’s amount of salary.

d. Annual plan of Indonesian labor absorption;

e. Validity period of the RPTKA.

1. RPTKA approval :

2. Approval of RPTKA consist of:

EXCEPTIONAL (RPTKA)

1.Goverment agencies/institutions,

2.Representatives offices of foreign countries,

3.International organisations;

4.Board of director, board of commissioner, and

members as shareholders in accordance with

prevailing laws and regulations.

EMERGENCY RPTKA

Arrangement: at the latest 2 (two) days during the expatriate employed, should apply for RPTKA to the Director General

or Director using online system.

Once completed, Director General or Director shall issued

the RPTKA within 1 (one) working day.

RPTKA in terms of emergency and urgent situation issued for a

maximum period of 1 (one) month and non-extendable.

SHORT-TERM RPTKA

“RPTKA approval for short-term issued for

maximum period of 6 (six) months and non-extendable”

RPTKA is granted for :

Commercial film making which has received permission from the

authorized institution;

Conducting Audit, product quality controlling , or inspection on

branch-companies in Indonesia for a period of more than 1 (one)

month;

Work related to the installation of machinery,

electrical, after sales service, or products during the business assessment;

Impresario or entertainment business.

AMENDMENT OF RPTKA

NOTIFICATION

Approval of the foreign workers utilization issued by the Director General

Development of Employment Placement and Employment Expansion as

the legal basis of ITAS (Limited Stay Permit) issuance

Period time of Notification based on Work Agreement

Employer required to pay the compensation fund up to 1 (one) day

Director General of Immigration using Notification as the legal

basis of VITAS (Limited Stay Visa) issuance

Application for the Notification accessible at: tka-online.kemnaker.go.id

NOTIFICATION REQUIREMENTS

Upload document(s):1. Expatriate document:

• education certificate;

• working experience certificate or competence;

• photograph;

• proof of polis insurance;

• draft of contract/work agreement;

• affidavit of appointed Indonesian worker as

counterpart;

• expatriate passport;

• accounts / savings of expatriate or employer;

2. Employer document:

• application letter to Director General or Director;

• application letter to Director General of

Immigration for the submission of Vitas (Limited

Stay Visa);

• guarantee statement from employer of

expatriate;

• employer’s identity number;

• approval letter Rp0,00 (zero rupiah).

Fill up a form:1. Referral code and location of the

Representative offices of the Republic of

Indonesia;

2. Expatriate detail:

• name;

• date and birth place;

• sex;

• marital status (married/widow/single);

• nationality;

• passport;

• education background;

• address and postal code;

• e-mail;

• mobile number;

• phone number;

3. Expatriate occupation:

• occupation and Indonesian standard

classification code;

• occupational levels;

• working period.

EXCEPTIONAL FOR NOTIFICATION

Notification is exceptional to those who are:

Shareholders who serve as members ofBoard of Directors / Board of Commissionerin accordance with prevailing laws andregulations.

Diplomatic official

Consular

COMPENSATION FUND OF FOREIGN WORKER

UTILIZATION (LEVY)

3

• The Employers of Foreign Workers are required to pay compensation fund (Levy) US$100 / per occupation/month/person as Non-State Tax Revenue (PNBP / Penerimaan Negara Bukan Pajak) or Provincial Revenue

• Payment scheme / method as follows:

Year 1 (new)

Inter-Provincial

Inter-

Regency/City in

single Province

One

Regency/City

Type of Payment

PNBP Bank Persepsi

(Bank BNI,

Bank BRI,

Bank Mandiri )

None

Payment alertsPlace of PaymentWork locationYear of Payment Remarks

Year 2

and so forth..

Inter-Provincial 1 month

prior to the

expiration date of

notification

1 542 6

Inter-

Regency/City

Local

District/City

Bank Persepsi

(Bank BNI, Bank

BRI, Bank

Mandiri )

Appointed Local

Bank

According to

Regional

Regulation

Local Revenue

PNBP

IMPLEMENTATION OF EDUCATION AND

TRAINING

1

23

4

PROGRESS REPORT

1

2

Employer must report the implementation of

Foreign Worker utilization in annual basis to

Director General.

Report as referred to in point 1 consists of:

a. Implementation of Foreign Worker

Utilization;

b. Implementation of education and

training for Indonesian workers;

c. Report of employment agreement past

due.

DEVELOPMENT

1. Development scheme :

a. socialization of laws and regulation on foreign workers utilization;

b. counseling about rights and restrictions on foreign workers utilization

2. Development of Employer on expatriate utilization and implementation

of education and training for Indonesian worker conducted by :

a. Ministry of Manpower;

b. Provincial government;

c. Regency/city level government whose duties and responsibilities

are concerned with manpower sector in accordance with its authority.

Temporary termination of licensing process;

SANCTIONS

The following

Administrative

sanctions are:Notification revoke; and/or

Delay of licensing process;

Other sanctions in accordance with

prevailing laws and regulations

DELAY OF SERVICES SANCTION

1

TEMPORARY SUSPENSION

OF FOREIGN WORKER UTILIZATION PROCESS

SANCTION

Administrative sanction such “temporary suspension of foreign worker utilization process” granted to employer who commit violation:

a. Does not have legal RPTKA authorized by Minister orappointed official

b. Fail to appoint Indonesian worker/counterpart in order totransfer knowledge and technology

c. Disobey to implement the education and training for Indonesianworker/counterpart, and/or

d. Fail to facilitate the education and training of Bahasa Indonesiacourse to foreign worker employed

1

NOTIFICATION REVOKED

SANCTION

Administrative sanction such “Notification Revoked” is granted toemployer who commit violation :

• Employs foreign worker applying prohibited positions; and/or

• Unable to contribute the compensation fund or levy.

SANCTION REMOVAL

FOREIGN WORKER UTILIZATION

FLOW CHART

EMPLOYER

SIPPTKAAPPLICATION

VISA-

ONLINEAPPLICATION

VERIFICATION

APPROVED

DECLINED

NOTIFICATION

APPROVAL

LEVY

PAYMENT

TRANSMITTING

THE NOTIFICATION CLEARANCE HOUSE

EXPATRIATE

IMMIGRATIONAL STATUS

BILLING CODE TRIGGERING

THE IMIGRATION FEE PAYMENT

VISA APPROVED (TELEX),

STICKER VISA, ITAS, IMK& USAGE OF TI

EXPATRIATE

BACKGROUND

WORK VISA

APPROVED

12

3

45

6

7

8

9

1011

VISA

ISSUED

INDONESIAN

REPRESENTATIVE

ABROAD

12

LIMITED STAY PERMIT (ITAS) GRANTED

(QR CODE)

ENTRY STAMP

EXPATRIATE ENTERS

INDONESIAN TERRITORY

THROUGHIMMIGRATION CHECKPOINT

13

LIMITED STAY PERMIT (ITAS)

ONLINE APLICATION

LIMITED STAY PERMIT

EXTENDABLE

14

EXIT PERMIT ONLY

& EMBARCATION

END OF

CONTRACT/WORK AGREEMENT

OR TERMINATION

: At this point, rejection possibly occurred note :

ONLINE SINGLE SUBMISSION

Integrating system TKA Online-Immigration

VERIFICATOR 2

INFORMATION