Frequently Asked Questions: #imta

Foreign companies operating in Indonesia must adhere to specific regulations when hiring foreign workers. Here are the key points regarding employment regulations for foreign workers:

Work Permit Requirements

• The company must obtain approval for its Foreign Manpower Utilization Plan (RPTKA) from the Ministry of Manpower before a foreign worker starts employment.
• The RPTKA ratification (Pengesahan RPTKA) is issued for each foreign worker and itself functions as the work permit — it replaced the former IMTA in 2018.
• The company must pay the foreign worker utilization compensation fund (DKPTKA) of USD 100 per month for each foreign worker.

Position Restrictions

• Foreign workers can only be employed in positions that cannot be filled by Indonesian nationals.
• Certain positions, particularly in Human Resources, are restricted and cannot be held by foreigners.
• The company must demonstrate efforts to transfer knowledge and skills to Indonesian staff.

Ratio Requirements

• For every foreign worker employed, the company must employ at least 10 Indonesian workers.
• This ratio may vary depending on the specific industry and position.

Time Limitations

• Work permits are typically issued for a maximum of 12 months and can be extended.
• Some positions may have restrictions on the total duration a foreign worker can hold them.

Compensation and Benefits

• Foreign workers must be paid in Indonesian Rupiah (IDR).
• Salaries must meet or exceed the minimum wage requirements for the region.
• Companies must enroll foreign workers in the national social security program (BPJS).

Language Requirements

• Foreign workers are expected to have a basic understanding of Bahasa Indonesia.
• Companies may be required to provide language training for foreign employees.

Reporting Obligations

• Companies must submit regular reports on their foreign workers to the Ministry of Manpower.
• Any changes in employment status must be reported promptly.

Penalties for Non-Compliance

• Failure to comply with foreign worker regulations can result in fines, business license revocation, or legal action against the company and the foreign worker.

It’s important to note that regulations can change, and specific requirements may vary based on the industry and location. Companies should consult with legal experts or professional services firms like Okusi Associates to ensure full compliance with current Indonesian employment laws for foreign workers.

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The process for obtaining a Work Permit (KITAS) in Indonesia involves several steps:

1. Employer Preparation * The Indonesian company must be properly established and have the necessary licenses to employ foreign workers. * The company needs to prepare a Foreign Manpower Utilization Plan (RPTKA) for approval.

2. Work Permit Application * Once the RPTKA is approved, the Ministry of Manpower issues the RPTKA ratification (Pengesahan RPTKA), which serves as the official work permit for the foreign employee (it replaced the former IMTA in 2018). * At this stage the company pays the DKPTKA levy of USD 100 per month per foreign worker.

3. KITAS Application * After the RPTKA is ratified, the company initiates the KITAS (Kartu Izin Tinggal Terbatas) application process. * The KITAS is a temporary stay permit card that allows the foreign worker to reside in Indonesia.

4. Required Documents * Passport (with at least 18 months validity) * Educational certificates and work experience letters * Job description * Passport-sized photographs * Health certificate from an approved medical facility * Proof of insurance coverage

5. Visa Process * The foreign worker applies for a VITAS (Visa Tinggal Terbatas) at the Indonesian embassy in their home country. * Upon arrival in Indonesia, the VITAS is converted into a KITAS.

6. Registration and Reporting * The foreign worker must register with the local immigration office within 30 days of arrival. * Additional registrations may be required with the local police and for tax purposes.

7. Family Members * Dependents (spouse and children under 18) can apply for dependent KITAS.

8. Renewal * KITAS is typically valid for 1-2 years and can be renewed as needed.

Important Notes: * The process can be complex and time-consuming. Many companies use professional services to handle KITAS applications. * Regulations may change, so it’s advisable to consult with immigration experts for the most up-to-date information. * Some positions or industries may have additional requirements or restrictions for foreign workers.

For personalized assistance with obtaining work permits and KITAS in Indonesia, consider consulting with a professional service provider specializing in immigration matters.

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To apply for a Work Permit (KITAS) in Indonesia, the following documents are typically required:

• Passport with at least 18 months validity
• Recent color photograph (4x6 cm with red background)
• Copy of company’s deed of establishment and its amendments
• Tax ID number (NPWP) of the company
• Business license (NIB)
• Manpower Utilization Plan (RPTKA) approval
• RPTKA ratification (Pengesahan RPTKA), which functions as the work permit, plus proof of DKPTKA payment (USD 100 per month per foreign worker)
• Educational certificates and CV of the foreign worker
• Job description for the position
• Proof of work experience (usually minimum 5 years)
• Recommendation letter from relevant government ministry (if applicable)
• Sponsorship letter from the employing company
• Proof of health/life insurance coverage
• Police clearance certificate from home country
• Copy of local employee’s ID card (KTP) who will be understudy

Please note:

• Document requirements may vary slightly depending on the specific position and industry.
• All foreign language documents must be translated into Indonesian by a sworn translator.
• Some documents may need to be legalized or apostilled in the country of origin.
• The immigration office may request additional documents during the application process.

It’s advisable to work with an experienced agent or consultant to ensure all requirements are met and the application process goes smoothly.

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Okusi Associates can provide comprehensive assistance with visa and work permit applications for foreign employees of PMA companies in Indonesia. Here’s how they can help:

Visa and Work Permit Services:

• Guidance on the appropriate visa type based on the employee’s role and duration of stay
• Assistance with preparing and submitting all required documentation
• Liaison with relevant government departments, including the Ministry of Manpower and Immigration
• Support throughout the entire application process, from initial submission to final approval

Types of Visas and Permits:

• Work and Stay Permit (KITAS) for long-term foreign employees
• Business Visa for short-term business activities
• Dependent Visa for family members of KITAS holders
• Retirement Visa for eligible foreign retirees

Application Process Support:

• Preparation of the company’s Expatriate Placement Plan (RPTKA)
• Obtaining the RPTKA ratification (Pengesahan RPTKA) from the Ministry of Manpower, which functions as the work permit
• Arranging the e-visa approval via the Directorate General of Immigration (evisa.imigrasi.go.id)
• Assistance with in-country visa conversion and KITAS issuance
• Coordination of biometric data collection and other immigration requirements

Ongoing Compliance:

• Monitoring of visa and permit expiration dates
• Assistance with renewals and extensions
• Guidance on maintaining legal status throughout the employee’s stay in Indonesia

Additional Immigration Services:

• Support for multiple entry visa applications
• Assistance with police report registrations
• Guidance on obtaining stay permit books (KITAP) for long-term residents

Immigration Advocacy:

• Representation in case of immigration-related issues or disputes
• Advice on complex immigration matters and regulatory changes

By leveraging Okusi Associates’ expertise in Indonesian immigration law and procedures, PMA companies can ensure a smooth and compliant visa and work permit application process for their foreign employees, minimizing delays and potential legal issues.

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To obtain a Work Permit (KITAS) in Indonesia, applicants must meet the following eligibility requirements:

• Be employed by an Indonesian company that is authorized to hire foreign workers
• Have a position that cannot be filled by an Indonesian citizen
• Possess the required qualifications and experience for the job
• Be at least 25 years old
• Have a valid passport with at least 18 months validity remaining
• Provide a curriculum vitae detailing work experience
• Hold relevant educational qualifications or certificates for the position
• Have health and life insurance coverage valid in Indonesia
• Not have any criminal record
• Be in good health, as certified by a medical examination
• Agree to transfer knowledge and skills to Indonesian workers

Additional considerations:

• The sponsoring company must have a valid Expatriate Placement Plan (RPTKA) approved by the Ministry of Manpower
• The position must not be on the list of jobs closed to foreign workers
• There are typically ratio requirements limiting the number of foreign workers to Indonesian employees
• Directors and commissioners of PT PMA companies are generally eligible for work permits
• Work permits are usually issued for 6-12 months initially, with the possibility of extension

It’s important to note that regulations can change, and specific requirements may vary depending on the industry and position. Consulting with a professional service provider like Okusi Associates can help ensure compliance with the most up-to-date regulations and streamline the application process.

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The process for renewing a Work Permit (KITAS) in Indonesia typically involves the following steps:

• Timing: Begin the renewal process at least 2 months before the current KITAS expires.

• Document Preparation: Gather necessary documents, including:

  • Valid passport with at least 18 months validity remaining
  • Current KITAS card
  • Updated sponsorship letter from the employing company
  • Proof of payment for DKPTKA (Dana Kompensasi Penggunaan Tenaga Kerja Asing, formerly DPKK), USD 100 per month per foreign worker
  • Recent color photographs
  • Proof of local health insurance coverage

• Company Sponsorship: The sponsoring company must initiate the renewal process by submitting an application to the Ministry of Manpower.

• Work Permit Renewal: Once approved, the Ministry of Manpower issues a renewed RPTKA ratification (Pengesahan RPTKA), which serves as the work permit.

• KITAS Renewal: With the new work permit, apply for KITAS renewal at the local immigration office.

• Biometrics: Attend an appointment at the immigration office for biometric data collection (fingerprints and photograph).

• KITAS Collection: Collect the new KITAS card once it’s ready, usually within 3-5 working days after biometrics.

• SKTT (Residence Registration): Update your SKTT (Surat Keterangan Tempat Tinggal) at the local civil registry (Dukcapil) office with your new KITAS details.

• Re-entry Permit: A multiple re-entry permit is included in the renewed electronic KITAS (e-ITAS), so no separate MERP application is required for international travel during its validity period.

It’s important to note that the exact process and requirements may vary slightly depending on the specific immigration office and any recent regulatory changes. Working with an experienced immigration service provider can help ensure a smooth renewal process and compliance with all current regulations.

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