Indonesian Business Updates

 

Changes to manpower regulations allow for non-resident directors

By Gary Dean  

Changes to Manpower regulations have just been announced (See Peraturan Menteri Ketenagakerjaan No 35 Tahun 2015) amending former regulations (Peraturan Menteri Ketenagakerjaan Nomor 16 Tahun 2015) relating to foreign workers in Indonesia.

In companies with more than one director, the new rules do now not compel non-resident directors to obtain a KITAS/IMTA (residence visa/work permit). The same applies to commissioners (komisaris). However, where the foreigner is a sole director or komisaris, then a KITAS/IMTA is compulsory.

In other changes, permission can now be obtained for very short term work (less than 1 month) for certain areas, including commercial film making, auditing, quality control, "company inspection", after sales service, installation of machinery or electrical work. Note, however, that a RPTKA for the work has to be arranged beforehand, and payment of DKP-TKA still has to be made.

Payment of the DKP-TKA ("DPKK", or foreign workers levy) can now be paid in US dollars again, a reversal of the previous situation where this sum had to be converted twice from USD to IDR and back to USD, in order to satisfy Bank Indonesia rules regarding use of Rupiah.

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