“Foreign Workers are employed with a specific time working agreement. It means, basically the working period of foreign workers depends on their employment agreement.”

Foreign Workers (“Tenaga Kerja Asing/ TKA”) are employed under the Working System of Specific Time Working Agreements (“Perjanjian Kerja Waktu Tertentu/ PKWT”) as defined in Article 42 paragraph (4) of Law Number 13 Year 2003 on Manpower (“Manpower Law”) explains that foreign employment may be employed in Indonesia only in the employment relationship for a particular position and time.

It is further stipulated in the Manpower Law that expired and non-renewable workforce may be replaced by other foreign workers. It means, basically the working period of a TKA depends on the particular employment agreement of the time.

Based on the Regulation of the Minister of Manpower No. 16 of 2015 on the Procedures for the Use of Foreign Workers as amended by Regulation of the Minister of Manpower No. 35 of 2015 on Amendment to Regulation of the Minister of Manpower No. 16 of 2015 on Procedures of the Use of Foreign Workers (Permenaker 35/2015) the foreign worker agreement is made for a certain period of time, then the working agreement is in the form of a PKT. Please note, PKWT is based on :

  1. Time period; or
  2. Completion of works.

PKWT may be extended or renewed, subject to the following conditions :

  1. PKWT based on a certain period of time may be held for a maximum of 2 (two) years and may only be extended 1 (one) time for a maximum period of 1 (one) year.
  2. PKWT renewal may only be held after the expiry of 30 (thirty) days after the expiration of the old PKWT, this PKWT renewal shall only be made 1 (one) time and no later than 2 (two) years.

For foreign citizens who obtain a residence permit also receive rights and obligations while in Indonesia :

  1. Obligation to obey and comply with laws and regulations;
  2. The right to receive protection of himself and his property;
  3. Has no right to choose and vote;
  4. Has no right and obligation to defend the state; and
  5. Has no right to get severance due to severance only for workers with permanent employment status.

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.

Contact us:
Email: elson@smartlegal.id
Phone: +62822 1000 9872
Office: +6221 8067 4920

Author: Belle Risca Junia/ ELSON