III. Employing Foreign Worker First, Then Applying RPTKA

Article 13 of Perpres No.20/2018 provides permission for the employer to hire foreign workers in Indonesia first, and then it will apply for RPTKA later. It only applies exclusively to emergency and urgent work, and the application RPTKA should be submitted within maximum 2 (two) days after foreign worker works in Indonesia.

Unfortunately, Perpres No.20/2018 does not provide further explanation on the definition of emergency and urgent work.

IV. “Abolishing” IMTA

Perpres No. 20/2018 is no longer regulates explicitly IMTA (Izin Mempekerjakan Tenaga Kerja Asing/ Expatriate Working Permit Letter). Article 14 only mentions the existence of a notification for payment of compensation funds to be submitted by the Minister of Manpower after the employer provides personal data on foreign workers. Whereas, in the previous regulation, the compensation fund (known as DPKK, Mandatory Skill Development Fund) is paid at the time of submission of IMTA after obtaining the billing code from the Ministry of Manpower.

The obligation to pay compensation funds is also excluded for the government agency, the representative of the foreign country, and international bodies as well as institutions in conducting social and religious activities, and too certain occupations in the field of education.

V. The Shorter Timeframe

Similarly to previous regulation, the Perpres No. 20/2018 also describes clearly the period required by the employer in the arrangement of the Foreign Workers license. For example, for ratification of RPTKA and its amendment, the period requested is only 2 (two) days since the application file is received completely. In the previous regulation Ministry Regulation No. 16 of 2015 stated it takes 3 (three) working days in obtaining the RPTKA.

Meanwhile, for RPTKA which is emergency and urgent, RPTKA is valid for a maximum of 1 (one) working day since the application is received completely.

Furthermore, the notification of payment of compensation funds shall be issued within 2 (two) working days with a copy of the Directorate General of Immigration. Even so with the issuance of Vitas (Visa Izin Tinggal Terbatas/Limited Stay Visa), also conducted within a maximum of 2 (two) working days since the file received completely.

VI. More Flexible Reporting Period

Compare to the previous regulations, Employer’s obligation to report the implementation of the use of foreign worker to The Ministry of Manpower has been reduced from previously every 6 (six) months, become only once a year, that covering:

  1. The implementation of employing foreign workers;
  2. The implementation of education and training of co-worker.

In addition to arranging several provisions that are considered beneficial for the employer, the Perpres No. 20/2018 also provides several obligations for the employer that employs foreign workers includes the following:

  1. The obligation to facilitate education and training of Indonesian language education (Article 26 Paragraph (1) Letter c).
  2. The obligation to include foreign worker in the Employment Social Security (BPJS Employment) and / or Indonesian legal insurance policy for the foreign worker who has more than six months working period (Article 25).

It is the end of the article. Hopefully, it will keep yourself informed. Enjoy!

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.

Contact us:
info@elson.co.id
(+62) 21 8067 4920 (office)
(+62) 819 3274 1 333 (hotline)

Author:
Latifah Kusumawardani (latifah@elson.co.id)