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Home INDONESIA IMMIGRATION NEWS

4 Important Things About An Expatriate Work Permit In Indonesia

by 198indonesianews_v2w0tn
August 26, 2021
in INDONESIA IMMIGRATION NEWS
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What You Want To Know About The Expatriate Working Allow In Indonesia?

Article 1 (13) of Legislation No. 13 of 2003 on Manpower (“Manpower Legislation”) defines International Staff (“Expatriates”) as visa holders of international citizenship who come to Indonesia with the intention to work inside Indonesia’s territory. Expatriates are international employees who dwell outdoors their native nation and settle overseas, e.g. in Indonesia. Employers trying to rent Expatriates to work with them in Indonesia should make sure that the Expatriates have acquired an entire set of Expatriate Work Allow as stipulated by the Ministry of Manpower in Indonesia.

On this article, we are going to elaborate on 4 (4) vital issues that each one Employers hiring and/or within the strategy of hiring Expatriates should know and perceive:

1. Who generally is a Sponsor for a Work Visa?

Solely the next entities are allowed to be a sponsor for the Expatriates in Indonesia:

• Authorities Establishments, Worldwide Our bodies, International State’s Representatives;
• Consultant Places of work of international chambers, international corporations, or international information;
• International Direct Funding Corporations (Penanaman Modal Asing or PMA);
• Authorized entities that are established based mostly on Indonesia’s legal guidelines or international enterprise entities that are registered in approved establishment in Indonesia (ie. International Consultant Workplace);
• Social, spiritual, academic, and cultural Establishments; and
• Leisure organizer (impresariat) enterprise providers.

Entities within the type of civil affiliation, agency, restricted partnership, enterprise partnerships, and particular person individuals are prohibited to make use of and/or act because the sponsor for Expatriates until stipulated in any other case by the Legal guidelines and Laws.

DKP-TKA Cost Obligation for Employers / Sponsors

Employers or sponsors are required to pay Experience and Ability Growth Fund (“DKP-TKA”) within the quantity of USD 100/month (USD 1200/yr) for every Expatriate employed to work in Indonesia. DKP-TKA are paid in full initially of the Working Allow utility process in Indonesia Rupiah (IDR), for the employment interval that has been accredited by the Minister of Manpower.

The next employers or sponsors are usually not required to pay DKP-TKA:

• Authorities Companies/Establishments;
• Worldwide Companies (e.g. WHO, ILO, UNICEF, and many others.);
• Representatives of International International locations;
• Social Establishments; and
• Spiritual Establishments.

2. Prohibited Positions for Expatriates

The next are the explanation why Expatriates work in Indonesia:

• Because the Proprietor of sponsor firm (Investor/Shareholders) and/or to behave as a member of the Board of Executives within the firm (ie.: President Director/ Director);
• As Consultants on sure expertise, for the switch of information to Indonesians.

Please be told that Indonesia Legislation regulates the Expatriates are usually not allowed to carry sure positions in Indonesia. These prohibited positions are principally within the subject of Human Assets Growth (HRD), similar to Personnel Director, Human Assets Supervisor, and HRD-related Supervisors. The complete listing of prohibited positions for expatriates is stipulated within the Minister of Manpower Decree No. 40 of 2012 (“Manpower Decree No. 40/2012”).

Aside from the prohibited positions listed on Manpower Decree No. 40/2012, there are different positions prohibited for Expatriates who work in sure fields, similar to within the Oil and Fuel Business.

Prohibition for Expatriates to carry A number of Positions

In response to article 41 of Minister of Manpower Decree No. 16 of 2015 (“Manpower Decree No. 16/2015”) Employers are usually not allowed to double submit Expatriates in a number of positions, similar to:

• Make use of Expatriates for twin positions, whether or not each positions are inside the similar firm, or in numerous corporations;
• Make use of Expatriates who’re at the moment employed by different Employers.

Exempted from the double posting prohibtion are Expatriates who work as members of the Board of Administrators, or the Board of Commisisoners.

3. The Procedures to Get hold of the Work Permits

Each employer that employs Expatriates is underneath an obligation to acquire written permission from the Ministry of Manpower (“Work Permits”). The next are the Procedures to acquire the Work Permits in Indonesia:

Permits to be held by the Sponsor Firm:

• International Staff Recruitment Plan (Rencana Penggunaan Tenaga Kerja Asing or “RPTKA”);
• Telex Vitas;
• International Employee Recruitment Allow (Izin Memperkerjakan Tenaga Kerja Asing or “IMTA”);

Permits to be held by the employed Expatriate:

• Restricted Keep Visa (Kartu Izin Tinggal Terbatas or “KITAS”);
• A number of Exit / Re-Entry Allow (“MERP”);
• Registration Letter (Surat Tanda Melapor or “STM”);
• Non permanent Keep Registration Letter (Surat Keterangan Pendaftaran Penduduk Sementara or “SKKPM”);
• Arrivals Allow Card (Kartu Ijin Pendatang or “KIJ”); and
• Arrival Reporting Proof Letter (Lapor Kedatangan or “LK”).

Knowledge required from the sponsor firm initially of the process consists of the deliberate: (1) title of sponsor firm; (2) enterprise domicile of the corporate; (3) title of head of the corporate; (4) job of Expatriates; (5) job description of Expatriates; (6) variety of Expatriates employed; (7) work location of employed Expatriates; (8) interval of Expatriates employment; (9) wage of Expatriates; (10) begin of employment; (11) variety of Indonesian employees employed within the sponsor firm; (12) the appointment of Indonesian employees as Expatriates companion; and (13) coaching program for the Indonesian employees.

4. Obligations to Get hold of Different Licenses for Expatriates

After a sure time period, Expatriates working in Indonesia are required to acquire different licenses with the intention to adjust to their obligations as stipulated within the Manpower Decree No. 16 of 2015. The obligations are as follows:

• Tax Compliance

Article 36 of Manpower Decree No. 16 of 2015 requires Expatriates who’ve labored for greater than 6 (six) months in Indonesia to acquire Taxpayer ID Quantity (Nomor Pokok Wajib Pajak or “NPWP”). NPWP capabilities as tax compliance for authorized topics in Indonesia.

• Native Insurance coverage Coverage

Article 36 of Manpower Decree No. 16 of 2015 requires Expatriates to have an insurance coverage coverage in an insurance coverage firm that’s at the moment established in Indonesia as an Indonesian authorized entity.

• BPJS or Social Safety Company Registration

Because the issuance of Legislation No. 24 of 2011 on Social Safety Company, Expatriates who’ve labored for at the least 6 (six) months in Indonesia are additionally required to take part within the Nationwide Safety System. Employers should register their worker on the Social Safety Company (Badan Penyelenggara Jaminan Sosial or “BPJS”) underneath 2 (two) safety packages: Employment and Well being.

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Source by Bimo Prasetio

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