Frequently Asked Questions: #skills-development-fund-levy-cost

The Skills & Development Fund levy — officially the DKPTKA (Dana Kompensasi Penggunaan Tenaga Kerja Asing, or Foreign Worker Compensation Fund, formerly known as the DPKK) — is a mandatory contribution required for companies employing foreign workers in Indonesia. Key points about the DKPTKA levy include:

• Purpose: It is designed to support the development of local workforce skills and competencies.

• Applicability: The levy applies to companies employing foreign workers on KITAS (temporary stay permit) visas.

• Payment frequency: The DKPTKA levy is calculated monthly for each foreign worker employed, and is normally paid in advance for the period of the RPTKA ratification.

• Cost: The current rate is USD 100 per month per foreign worker.

• Payment method: The levy is paid as non-tax state revenue (PNBP) to the state treasury, via a billing code generated in the Ministry of Manpower’s TKA Online system.

• Legal basis: The DKPTKA levy is mandated by Government Regulation No. 34 of 2021 on the Use of Foreign Workers, as part of the country’s efforts to promote skills transfer and local workforce development.

• Non-compliance consequences: Failure to pay the DKPTKA levy can result in difficulties renewing work permits and potential fines or sanctions.

• Exemptions: Some categories of foreign workers may be exempt from the DKPTKA levy, such as diplomatic personnel or those working on specific government-to-government projects.

Companies employing foreign workers should factor this ongoing cost into their budgeting and ensure timely payments to maintain compliance with Indonesian labor regulations.

#skillsDevelopmentFund   #KITAS   #foreignEmployee   #laborLawCompliance