“Article 22A Regulation 24/2012 stipulated that every mining services company which intends to hiring expatriates is obliged to obtain permit from Ministry of Manpower or the appointed official. Prior to that, the company must obtain approval from the Minister of Energy and Mineral Resources, governor, or mayor/regent based on their authority.”
Globalization has changed the business world significantly. In term of human resources, nowadays, developing countries such as Indonesia cannot deny the wave of foreign workers or commonly called expatriates arrival in various sectors, including mining sector. The Government of Indonesia has set some regulations and policies regarding the use of expatriates in mining sectors.
The mechanism of foreign worker usage in mining sector is stipulated by Minister of Energy and Mineral Resources (MOEMR), Regulation Number 24 of 2012 (“Regulation 24/2012”) which is the amendment of previous version, Regulation Number 28 of 2009 regarding the Operation of Mineral and Coal Mining Business, and Minister of Manpower (MOM) Regulation Number 35 of 2015 regarding the Mechanism of Expatriate Usage (“Regulation 35/2015”).
To sum up here are 6 (six) steps that must be done by a mining services company in before they could hiring an expatriate:
First, Make sure that the mining services company has already obtain Mining Services License or Izin Usaha Jasa Pertambangan (IUJP) which is the very basic requirement for a mining services company to operate in Indonesia.
Second, Article 22A Regulation 24/2012 stipulated that every mining services company which intends to hiring expatriates is obliged to obtain permit from Ministry of Manpower or the appointed official. Prior to that, the company must obtain approval from the Minister of Energy and Mineral Resources, governor, or mayor/regent based on their authority.
Third, getting recommendation of the Expatriate Utilization Plan or Rencana Penggunaan Tenaga Kerja Asing (RPTKA) and Expatriate Working Permit Card or Izin Menggunakan Tenaga Kerja Asing (IMTA) recommendation from the Directorate General Oil and Gas as regulated on the Minister of Energy and Mineral Resources Regulation No. 31/2013.
Fourth, the company obliged to submit the above mentioned RPTKA which has to be approved by the Minister of Manpower. RPTKA is the basis to obtain the IMTA.
In order to obtain RPTKA, a mining services company submits a request to the Director General of Manpower Placement and Job Expansion through the Director of Control of Foreign Manpower Utilization. The submission process which can be done via online must include these documents as follows:
- completed form,
- reason in hiring expatriate,
- business license,
- article of association and related amendments,
- company structure,
- company domicile letter,
- recommendation letter from relevant technical institution regarding the designated position for the expatriates,
- taxpayer identification number,
- assignment letter for the Indonesian manpower who is assigned as the expatriate’s companion,
- statement letter regarding the training program that fits to expatriate’s expertise, and
- Mandatory manpower report as regulated in Law Number 7 of 1981.
The submitted documents will be reviewed by the Director of Control of Foreign Manpower Utilization. If necessary, as part of the reviewing process, there will be on the spot verification. The approved RPTKA can be valid for 5 (five) years and subject to be renewed.
The above requirement and procedure is applicable for normal RPTKA. There are 2 (two) other types of RPTKA with a slight different of requirement and procedure, which are RPTKA for emergency jobs and RPTKA for temporary jobs.
Fifth, after RPTKA, a mining services company must obtain IMTA. The procedure of IMTA is started by submitting an online request to the Director of Control of Foreign Manpower Utilization. Some documents that must be uploaded are as follows:
- Decree of RPTKA authorization;
- Passport of foreign manpower;
- Photo of foreign worker;
- Assignment letter for the Indonesian manpower who is assigned as the expatriate’s companion;
- Certificate of education of foreign manpower that matches up with the requirement for the position;
- Certificate of competence or having 5 years working experience that matches up with the position;
- Draft of employment agreement;
- Evidence of insurance policy;
- Recommendation letter from relevant institution.
Sixth, pay for Mandatory Skill and Development Fund or Dana Pengembangan Keahlian dan Keterampilan (DPKK), which is about US$100 monthly per position.
How can ELSON help you?
ELSON Indonesia is a company that focus on providing comprehensive legal solution for expatriates, foreigner, and mix marriage couple in Indonesia.
Phone: 0819 3274 1 333