The development of technology certainly has an impact on the development of a country’s economic sector, so that human resources will increase in various fields. In addition, the development of globalization encourages the movement of capital and investment flows to various parts of the world, resulting in population migration or movement of labor from one country to another.
Indonesia is no exception, which is still the target of foreign investors to invest in Indonesia. Automated resource services and labor migration occur because investments made in other countries generally require direct supervision by the owner/investor.
However, to anticipate things that are not desirable in the future, Indonesia has implemented strict regulations regarding the arrival of foreign workers to Indonesia.
What is meant by Foreign workers?
Basically, what is meant by TKA are foreign citizens. However, in principle, all resource service companies and employers in Indonesia must prioritize Indonesian Workers in all types of positions available at the company.
Based on human resource service data, sometimes certain positions or positions require foreign workers who have special skills that are not owned by local workers, for example, those related to the application of new technology. So employers can use foreign workers.
According to human resource services and in accordance with Indonesian government regulations, what is meant by foreign workers are those who meet the following requirements:
- Foreign Citizens (not Indonesian citizens)
- Holding a certain type of visa with the intention of working in the territory of Indonesia, in this case, the visa used is a type of limited stay visa for work.
Who can employ foreign workers?
Resource Service for foreign Workers are all Foreign Citizens who have a Limited Stay Visa to work and based on Presidential Regulation No. 20/2018, those who are entitled to employ foreign workers are :
- Government agencies
- International bodies
- Representatives of foreign countries
- International organization
- Foreign trade representative offices, representative offices of foreign companies, representative offices of foreign news.
- Foreign private companies, foreign business entities registered with the competent authority.
- Legal entities established under Indonesian law in the form of Limited Liability Companies or Foundations.
- Social, religious, educational, and cultural institutions.
- Impresariat service business.
- And business entities as long as they are not prohibited by law
What are the requirements to become a foreign worker?
Resource Service for the requirements for foreign workers in the Minister of Manpower Regulation No.10 of 2018 stipulates that foreign workers working in Indonesia must meet the following requirements:
- Human resource services, especially foreign workers, will be given training in accordance with the qualifications of the position to be occupied by foreign workers;
- Has a competency certificate or has had work experience of at least 5 (five) years in accordance with the qualifications of the position to be occupied by foreign workers;
- Transferring their expertise to Associate Workers;
- Have a Taxpayer Identification Number (NPWP) for foreign workers who have worked for more than 6 (six) months; and
- Has a Limited Stay Permit (ITAS) for work issued by the competent authority.
Certain positions that are prohibited from being held by foreign workers
Even though foreign workers have met the requirements to work in Indonesia according to the Minister of Manpower Regulation No.10 of 2018, the positions or positions below cannot be filled by foreign workers. The positions that may not be held by the TKA include:
- Personnel Director;
- Industrial Relations Manager (Industrial Relations Manager);
- Personnel Manager (Human Resource Manager);
- Personnel Development Supervisor;
- Personnel Recruitment Supervisor;
- Personnel Placement Supervisor;
- Employee Career Development Supervisor;
- Personnel Administration (Personnel Declare Administrator);
- Chief Executive Officer;
- Personnel and Careers Specialist;
- Personnel Specialist;
- Career Advisors;
- Labor Advisors (Job Advisor);
- Job Advisor and Counseling;
- Employee Mediator;
- Employee Training Administration (Job Training Administrator);
- Employee Interviewer (Job Interviewer);
- Job Analysis;
- Occupational Safety Specialist
Licensing procedures for resource services, especially foreign workers in Indonesia
Foreign Workers Special Resource Service licensing is given by the Director of Procurement and Manpower of the Ministry of Manpower and Transmigration to foreign workers, by first submitting an application to obtain a visa recommendation (TA-01) by attaching:
- Copy of Decree of Ratification of RPTKA;
- Copy of the foreign workers’ passports to be employed;
- Curriculum vitae of the TKA to be employed;
- Copy of diploma and/or description of work experience of the TKA who will be employed;
- Copy of appointment letter for companion labor; and
- 1 (one) sheet of 4 x 6 cm color photographs.
Human resource services at the Directorate General of Immigration have provided visa applications to be able to work on behalf of the foreign workers concerned and issued a notification letter regarding the approval of visa granting, the TKA employer applies for IMTA by attaching :
- a copy of the draft work agreement;
- Proof of payment of compensation funds for the use of foreign workers through a Bank appointed by the Minister;
- copy of insurance policy;
- copy of notification letter regarding approval for granting visas; and
- 2 (two) pieces of 4×6 size color photographs
Requirements for the Extension of IMTA
Resource services provide an extension of the Permit to Employ Foreign Workers (IMTA) which can be extended for a maximum of 1 (one) year if the IMTA validity period has not ended. Applications for an extension of the IMTA are carried out by filling in the IMTA extension form by attaching :
- Copy of a valid IMTA;
- Proof of payment of compensation funds for the use of foreign workers through a bank appointed by the Minister;
- Copy of insurance policy;
- Training for companion TKI;
- Copy of valid RPTKA decision; and
- 2 (two) pieces of 4 x 6 cm color photograph.
Mechanism of using foreign workers
Resource service mechanisms for the use of foreign workers are carried out carefully and transparently with very strict procedures. By requiring companies or corporations that use foreign workers to work in Indonesia by making plans for the use of foreign workers (RPTKA), namely:
Application for Ratification of RPTKA
According to the resource service, To get RPTKA approval, the TKA employer must submit a written application with the reasons for using the TKA by attaching:
- A completed RPTKA form;
- business license from the competent agency;
- deed of establishment as a legal entity legalized by the competent official;
- statement of the company’s domicile from the local regional government;
- company organizational structure chart;
- a letter of appointment of a TKI as a companion to the employed TKA;
- a copy of proof of mandatory employment report that is still valid based on Law Number 7 of 1981 concerning Obligatory Labor Reporting in companies; and
- recommendation of positions to be occupied by foreign workers from certain agencies if needed.
The RPTKA form must attach:
- The identity of the employer of the TKA;
- Position and/or position of foreign workers in the organizational chart of the company concerned;
- The number of foreign workers’ wages to be paid;
- Number of TKA;
- TKA work location;
- The period of time for using TKA;
- Appointment of Indonesian citizens to accompany the employed TKA; and
- Resource services provide a planned education and training program for Indonesian workers.
Resource services and procedures for reporting foreign workers
Employer resource services for foreign workers are required to report the use of foreign workers and their assistantsTKA in the company every 6 (six) months to the Director or Governor or Regent / Mayor with a copy to the Director-General. The Director or Governor or Regent / Mayor reports the IMTA issued periodically every 3 (three) months to the Minister with a copy to the Director-General.
Supervision of employers who employ foreign workers is carried out by resource services or labor inspection employees according to laws and regulations.
Resource services in the event that an employer employs foreign workers, not by IMTA, then the Director or Governor or Regent / Mayor has the authority to revoke the IMTA.
We always provide solutions for you!
Sponsors in Indonesia, whether in the form of legal entities or individuals, need to collaborate with resource services in the process of managing Formalities Expatriate Legal Document Procedures for Foreign Workers who will enter Indonesian territory under the purpose of their arrival both for business visits and staying in Indonesia for a certain period.
This regulation has been enforced by the Indonesian government through the Ministry of Manpower. The licensing process for foreign workers who wish to work and live in Indonesia is indeed not easy, this is where the role of BINKA Consulting as a human resource service will ease your burden. Currently, permits to use foreign workers can be done online or come directly to our branch offices throughout Indonesia.
Formalities Expatriate Legal Document Procedures
The term Formalities Expatriate Legal Document Procedures according to human resource services, is often used for fields related to the legality process of work permits and residence permits for foreigners / foreign workers who will enter Indonesian territory and plan to live or work in Indonesia for a period of time. certain.
Human resource services from BINKA Consulting are very much needed to facilitate and speed up the process of procuring expatriate legal documents for the foreigners concerned in accordance with the relevant regulations in force in Indonesia.
You are advised to contact BINKA Consulting as a resource service for more details. For information regarding the recruitment, due diligence, taxation, or work permits in Indonesia, BINKA Consulting as a service for human resources services for labor permit documents, Visa, and managing the establishment of PT PMA, is ready to serve you. Contact us now and get the latest information along with a free quote for your business and a free consultation.
We will help you decide whether hiring foreign workers or local talent is the best requirement for your business.
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