Ministry of Manpower of the Republic of Indonesia Director General Development of Employment Placement and Employment Expansion Directorate

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1 Ministry of Manpower of the Republic of Indonesia Director General Development of Employment Placement and Employment Expansion Directorate Controlling of Foreign Worker Utilization

2 PRESIDENTIAL REGULATION NUMBER 20 OF 2018 on Foreign Worker Utilization Ministry of Manpower of Republic of Indonesia Director General Manpower Placement Development and Employment Expansion Directorate Controlling of Foreign Worker Utilization

3 PRESIDENTIAL REGULATION NO.20 OF Improving Competitiveness Indonesian competitiveness level is still below the average than ASEAN countries as follows: Singapore Malaysia Thailand Brunei Darussalam Vietnam Improving competitiveness through: Deregulation and debureaucracy Simplification of the procedures Simplification of the integrated online system Facilitation and ensure business continuity

4 PRINCIPLES OF FOREIGN WORKER UTILIZATION 1. Foreign worker utilization must prioritize local workers in all occupational level 2. The scope of foreign worker utilization Sponsorship Certain position Certain time National labour market consideration

5 MINISTERIAL REGULATION NUMBER 10 OF 2018 on Procedure of Foreign Worker Utilization Ministry of Manpower of Republic of Indonesia Director General Development of Employment Placement and Employment Expansion Directorate Controlling of Foreign Worker Utilization

6 SIMPLIFICATION PROCEDURE OF FOREIGN WORKER UTILIZATION (FWU) No. Comparison Items Ministerial Regulation 16 jo. 35 of FWU Permit Work Permit issued as Izin Mempekerjakan Tenaga Kerja Asing (IMTA) Ministerial Regulation 10 of 2018 Work Permit issued as Rencana Penggunaan Tenaga Kerja Asing (RPTKA)* 2 FWU Approval RPTKA and IMTA RPTKA and Notification 3 Duration of Service 6 Days RPTKA : 3 days IMTA : 3 days 4 days RPTKA : 2 days Notification : 2 days 4 Other Institution Recommendation Recommendation is needed None Requirement and prohibition to be established by ministerial decree 5 Form of Services Semi Online Partially integrated system Online Fully integrated system 6 RPTKA Validity 1 year, extendable As per contract/ work agreement *RPTKA (Foreign Worker Utilization Plan/FWUP)

7 No. Comparison Items Ministerial Regulation 16 jo. 35 of Director/commissioner : a. Shareholder Work Permit Required Ministerial Regulation 10 of 2018 Work Permit NOT Required For investor Not in working relationship b. Non Shareholder Work Permit Required Work Permit Required 8 Bahasa Indonesia Course No Obligation to facilitate Employer is obligated to facilitate 9 Dual Occupation Restricted to Director/Commissioner 1. Director or Commissioner 2. Certain sectoral positions as follows: Education and Vocational Training Oil and Gas (KKKS) FinTech 10 RPTKA in case of Emergency RPTKA issued at the time as arrival RPTKA issued 2 days at the latest post-arrival

8 EMPLOYER S OBLIGATIONS 1 Obtain Foreign Worker utilization Plan (RPTKA) Appoint Indonesian worker as associate for foreign worker 5 2 Contribute the Compensation Fund (DKP-TKA) Implement education training programs the and 6 3 Ensure foreign workers register on health insurance program EMPLOYER S OBLIGATIONS Facilitate Bahasa Indonesia course for foreign workers Ensure foreign workers register on National Social Security program Report the utilization program to Minister or appointed official annually

9 UTILIZATION OF FOREIGN WORKERS Foreign Workers Utilization is a certain-time-and-certainposition working relationship Personnel affairs (and certain positions) are prohibited for foreign workers in accordance with prevailing legislation Prohibition (negative list) and certain positions (positive list) which are allowed shall be established by the Minister

10 TYPE OF RPTKA (FOREIGN WORKER UTILIZATION PLAN)

11 SUBMISSION OF THE RPTKA 1 2 Fill in : Upload : Employer s detail identity Number of Indonesian workers employed; Annual plan of Indonesian labor absorption; Annual foreign workers utilization plan according to the work agreement or employment agreement; Associate s detail; and Reasons of foreign worker utilization. Working Agreement or Employment Agreement Plan; Organizational Structure Chart; Letter of Associates Appointment; Letter of implementation of education and training for Indonesian worker; Letter for Emergency and Urgent situation.

12 APPROVAL OF RPTKA 1. RPTKA approval : a. Director: for less than 50 (fifty) expatriate(s) b. Director General: for more than 50 (fifty) expatriate(s); 2. Approval of RPTKA consist of: a. Number and date of approval; b. Name and address of the company/employer; c. RPTKA includes: 1) type of position and number of foreign worker employed; 2) work location and length of utilization; 3) number of associate; 4) amount of foreign worker s salary. d. Annual plan of Indonesian labor absorption; e. Validity period of the RPTKA.

13 EXEMPTIONS (RPTKA) 1.Goverment agencies/institutions, 2.Representative offices of foreign countries, 3.International organizations; 4.Board of director, board of commissioner, and members as shareholders in accordance with prevailing legislation.

14 EMERGENCY RPTKA Arrangement: at the latest 2 (two) days during the foreign worker employed, should apply for RPTKA to the Director General or Director through online system. Once completed, Director General or Director shall issue the RPTKA within 1 (one) working day. RPTKA in terms of emergency and urgent situation is issued for a maximum period of 1 (one) month and non-extendable.

15 SHORT-TERM RPTKA RPTKA is granted for : Commercial film making which has received permission from the authorized institution; Conducting audit, product quality controlling, or inspection on branch-companies in Indonesia for a period of more than 1 (one) month; Work related to the installation of machinery, electrical, after sales service, or products during the business assessment; Impresario or entertainment business. RPTKA approval for short-term issued for maximum period of 6 (six) months and non-extendable

16 AMENDMENT OF RPTKA

17 NOTIFICATION Approval of the Foreign Workers Utilization Plan issued by the Director General Manpower Placement Development and Employment Expansion as the legal basis of ITAS (Limited Stay Permit) issuance Period time of notification based on working agreement Employer required to pay the compensation fund up to 1 (one) day Director General of Immigration using the Notification as the legal basis of VITAS (Limited Stay Visa) issuance Application for the notification is available at: tka-online.kemnaker.go.id

18 NOTIFICATION REQUIREMENTS

19 NOTIFICATION EXEMPTIONS The following are exempted from notifications : Shareholders who serve as members of Board of Directors / Board of Commissioner in accordance with prevailing laws and regulations. Diplomatic official Consular

20 COMPENSATION FUND OF FOREIGN WORKER UTILIZATION (DKP-TKA) The Employers of Foreign Workers are required to pay compensation fund (DKP-TKA) US$100 / per occupation/month/person as Non-State Tax Revenue (PNBP / Penerimaan Negara Bukan Pajak) or Provincial Revenue Payment scheme / method as follows: Year of Payment Work location Type of Payment Place of Payment Payment alerts Remarks Year 1 (new) Year 2 and so forth.. Inter-Provincial Inter- Regency/City in single Province One Regency/City PNBP Collecting Agents (Bank BNI, Bank BRI, Bank Mandiri ) None Inter-Provincial PNBP 1 month Inter- Regency/City Local District/City Local Revenue Collecting Agents (Bank BNI, Bank BRI, Bank Mandiri ) Appointed Local Bank prior to the expiry date of notification According to Regional Regulation

21 IMPLEMENTATION OF EDUCATION AND TRAINING

22 PROGRESS REPORT 1 Employer must report the implementation of foreign worker utilization annually to Director General. 2 Report as referred to in point 1 consists of: a. Implementation of Foreign Worker Utilization; b. Implementation of education and training for Indonesian workers; c. Report on expiration of foreign workers utilization.

23 DEVELOPMENT 1. Development scheme : a. socialization of legislation on foreign workers utilization; b. counseling on rights and restrictions of foreign workers utilization 2. Development of Employer on foreign worker utilization and implementation of education and training for Indonesian worker is conducted by : a. Ministry of Manpower; b. Provincial government; c. Regional/Municipal government whose duties and responsibilities are concerned with manpower sector in accordance with its authority.

24 PENALTIES Delay of licensing process; 1 Penalties to companies who do not adhere can be: Temporary suspension of the licensing process; Revoke of work permit notification; and/or Other sanctions in accordance with prevailing legislation

25 DELAY OF LICENSING PROCESS 1

26 TEMPORARY SUSPENSION OF LICENSING PROCESS 1 A temporary suspension of the licensing process will be applied to companies who: a. Do not possess legal RPTKA authorized by Minister or appointed official b. Fail to appoint Indonesian worker/associate in order to transfer knowledge and technology c. Do not implement the education and training for Indonesian worker/associate, and/or d. Fail to facilitate the education and training of Bahasa Indonesia course to foreign worker employed

27 REVOCATION OF WORK PERMIT NOTIFICATION 1 Revocation of work permit notifications will be applied to companies who: 3 a. Employs foreign worker on prohibited positions; and/or b. Unable to contribute the compensation fund or DKP-TKA. 2 4 The form of Director General decree is enclosed at Annex 8 which is an integral part of the Ministerial Regulation 10/2018.

28 REVOCATION OF SANCTIONS

29 FOREIGN WORKER UTILIZATION STREAM LINE EMPLOYER 1 DECLINED TRANSMITTING THE NOTIFICATION 2 VERIFICATION APPROVED 5 SIPPTKA APPLICATION 3 PAYMENT of DKP-TKA NOTIFICATION APPROVAL ONLINE SINGLE SUBMISSION Integrating system TKA Online-Immigration BILLING CODE TRIGGERING THE IMIGRATION FEE PAYMENT 4 6 VERIFICATOR 2 VISA APPROVED (TELEX), STICKER VISA, ITAS, IMK CLEARANCE HOUSE 7 VISA- ONLINE APPLICATION 8 FOREIGN WORKER S IMMIGRATIONAL STATUS FOREIGN WORKER S BACKGROUND 9 10 WORK VISA APPROVED INDONESIAN MISSION ABROAD 11 VISA ISSUED FOREIGN WORKER ENTERS INDONESIAN TERRITORY THROUGH IMMIGRATION CHECKPOINT 12 LIMITED STAY PERMIT EXTENDABLE 13 LIMITED STAY PERMIT (ITAS) ONLINE APLICATION LIMITED STAY PERMIT (ITAS) GRANTED (QR CODE) ENTRY STAMP EXPIRATION OF CONTRACT/WORKING AGREEMENT OR TERMINATION 14 EXIT PERMIT ONLY & EMBARCATION note : : At this point, a rejection is possibly occurred

30 Ministry of Manpower of the Republic of Indonesia Director General Development of Employment Placement and Employment Expansion Directorate Controlling of Foreign Worker Utilization