“The Sponsor Company by law responsible for the presence and activities of the expatriate during their employment in the Indonesian Territory”
General Responsibility of Sponsor Company
Sponsor Company to Expatriate means the Guarantor as mentioned in article 1 Number 26 Law Number 6 Year 2011 Concerning Immigration (“Immigration Law”) as elaborated above.
As the Guarantor, Sponsor Company needs to comply the responsibility to its expatriate. This matter is generally set out in the Article 63 Immigration Law as summed up as follows:
- Responsible to guarantee the expatriate existence while in Indonesian territory;
- Has the obligation to report every change of the Immigration Status and the changes of address;and
- Pay all of the related cost to return the expatriate to the home country.
Those responsibilities of Sponsor Company are arranged through statement letter which mentions every single responsibility of the company to the expatriate to be signed by the Director (or any other higher position-employee) hereinafter.
Employment Responsibility of Sponsor Company
Sponsor Company as the employer of expatriate also needs to register their expatriate to the Ministry of Manpower in order to obtain Expatriate Manpower Utilization Plan (“RPTKA”) and Expatriate Manpower Utilization Permit (“IMTA”). Thus, it should submit the copy of company legal documents and sign all of the related forms to employ the expatriate. Other than RPTKA and IMTA, Sponsor Company should apply for the Expatriates Immigration Documents such as Telex Visa, Limited Stay Permit, Police Report Certificate, and Certificate of Registration for Temporary Resident, and Expatriate Residence Report to the related institutions.
There are penal provisions for Sponsor Company who employs the expatriate without permits as enacted on article 185 verse (1) Law Number 13 Year 2003 Concerning Manpower with Prison Penalty minimum for 1 (one) year to 4 (four) years as maximum length and/or financial penalty with the maximum amount of IDR400,000,000 (Four Hundred Thousand Rupiah).
Furthermore, on article 190, the Sponsor Company that does not comply the technical requirements for expatriates such as providing the assisting local employee (TKI), conduct the training and education by expatriate to TKI, paying the compensation fee to the institution, and return the expatriate to their home country will get the administrative penalty. Those might be the warning, non-compliance letter, business activity limitations, temporary dismissal of business activity, cancellation of approval and registration, temporary dismissal of production tool partially or wholly or permits revocation.
How Can Elson Help You?
ELSON Indonesia is a company that focus on providing comprehensive legal solution for expatriates, foreigner, and mixed marriage couple in Indonesia.
Author :Hanan Khalifah/Elson