BRIEF SUMMARY: NEW REGULATION ON UTILIZATION OF FOREIGN WORKERS IN INDONESIA

Indonesian Government issued newly Presidential Regulation Number 20 Year 2018 concerning Utilization of Foreign Worker (“PR 20/2018”) on March 29, 2018. This latest  Presidential Regulation bring fresh air to foreign workers in Indonesia, because stipulate some items  which is not regulate in Presidential Regulation Number 72 Year 2014 on Foreign Worker Utilization and Implementation of Education and Training of Indonesia Workers (“PR 72/2014”). This newly issued PR 20/2018 revokes PR 72/2014.

This regulation issued as an effort to support the national economy, through expand the work opportunities and increase of investment in Indonesia.

                                                          imagesource: https://www.nd.gov/omb/state-employee

Furthermore, here below I set out important provisions from PR 20/2018.

1. Foreign Employer (“Employer”) should recognize the domestic labor market before utilize Foreign Worker (“Worker”) in working relation for specific position and temporary period.

2.  Employer is required to prioritize Indonesian Worker in all available position, except Indonesian Worker did not have the ability for that position yet.

3.  Foreign Workers are prohibited to work in the human resources department and/or specific job that have been determined by the Minister of Manpower.

4.  Other Employers on specific sector can utilize Workers who already hold the same position in other company until the end of the working period based on contract from the first Employer in this regard will further stipulated in a Ministerial Regulation.

5.  Every Employer who utilize foreign worker is required The Approval of Foreign Manpower Utilization Plan (Rencana Penggunaan Tenaga Kerja Asing-“RPTKA”) issued by the Minister or other designated official, RPTKA should mention utilization reason, position and/ or Worker position in company organization, worker working period, and designation Indonesian employees as the associates for foreign worker.

6.    RPTKA validation which is permit for utilize Workers issued at the longest 2 (two) days by Minister of Manpower or other designated official since the receipt of the complete application.

7.    An RPTKA is required, except for the government institutions, representative offices of foreign countries and international organizations. The exemption from obtaining an RPTKA is also given for worker in the following cases:

a.    For shareholders appointed directors or commissioners in a company

b.    For diplomats and consular working for representative office of foreign countries, or

c.    For foreign workers who working in certain positions required by the government.

8.    RPTKA, which validated, will be valid in accordance with Worker working period.

9.    For an emergency and urgent jobs, Employer may employ the foreign worker first then apply for the validation of RPTKA to the Ministry or other designated official at the latest 2 (two) days after the Worker work.

10. After receive the notification, Employer should pay compensation fee for utilize Worker.

11. Every Foreign Worker in Indonesia is required to obtain a limited stay visa (Visa Tinggal Terbatas-“VITAS”). The application of a VITAS applied by Employer to the Minister of Law and Human Rights and relevant immigration official.

12. VITAS application and Limited Stay Permit (Izin Tinggal Terbatas-“ITAS”) have been turned into one process to the representative of the Republic of Indonesia abroad (i.e., the Indonesian Embassy or the Indonesian Consulate) as being the “long arm” of the Directorate General of Immigration. The VITAS will need to issue by the Embassy within two working days after receipt of the complete application.

13. Every Employer is required to register the Worker in the Manpower Social Security (Badan Penyelenggara Jaminan Sosial Ketenagakerjaan-BPJS Ketenagakerjaan) in case they work for more than six months and/or register to similar insurance from an Indonesian based insurance company.

14. Employer is required to report the utilization of foreign workers every one year to the Minister of Manpower.

Here above the important provisions need to know by the Employer or Worker.

April 25^th 2018

Copyright © 2018.Arif Sharon Simanjuntak. All rights reserved.