Taking Care of Foreign Workers Permit

The rise of foreign investment companies (PT PMA) is closely related to the use of foreign workers in Indonesia. Even though the law in Indonesia requires PT PMA to use Indonesian labor, it’s very common for PT PMA to use foreign workers.

What constitutes foreign workers
Presidential Regulation of the Republic of Indonesia Number 20 of 2018 concerning Use Foreign Workers (Perpres 20/2018) defines Foreign Workers as foreign citizens, equipped with a visa, with the intent of working in Indonesian territory.

 

Foreign workers are allowed to work in Indonesia in an employment relationship for certain positions and within a certain period.  The usage of foreign workers must abide by certain conditions. Article 5 of Presidential Decree 20/2018 states the following conditions:

(1) Foreign workers are prohibited from occupying certain positions;

(2) Certain positions as referred to in paragraph (1) shall be determined by the Minister of Manpower;

(3) In the event where certain ministries/institutions require certain qualifications and competencies or prohibit foreign workers for certain departments, ministers/heads of the said institutions shall submit such conditions to the Minister of Manpower to be approved ”

 

In employing foreign workers, some permits must be fulfilled, one of which is the Foreign Workforce Usage Plan (RPTKA).  

 

RPTKA is a plan for the use of foreign workers at certain positions made by the employer for a certain period legalized by the Minister of Manpower or an appointed official. It contains at least: the reason for the usage of foreign workforce, the position of the said foreign workforce inside the company, period of usage, and appointment of Indonesian workforce to supervise the usage of foreign workforce. RPTKA application is submitted to the Minister in the field of manpower or designated office. This RPTKA management process can be done online at tka-online.kemnaker.go.id.

The RPTKA application process is carried out in several stages. First, the applicant registers to get an online queue number. Second, the applicant fills in the RPTKA document form. Third, the applicant uploads the RPTKA document. Fourth,  The Ministry of Manpower shall carry out RPTKA verification and exposure schedule. Fifth, submission of RPTKA ratification (commonly done  2 days after the requirements are declared complete). Lastly, the employer becomes a legitimate RPTKA holder.

Based on Article 14 of Presidential Decree 20/2018, it is stated that:

 

“(1) Employers of the foreign workforce shall submit data on the prospective foreign workforce to the Minister of Manpower or appointed official;

(2) Data on prospective foreign workers shall include:

1. name, gender, place, and date of birth;
2. nationality, passport number, passport validity period, and the place where the passport was issued;
3. name of position and period of work;
4. statement of guarantee from the employer; and
5. educational diplomas and work experience certificates or competency certificates in accordance with the terms of the position to be occupied by foreign workers.

(3) The Minister of Manpower or the appointed official submits notification of data acceptance of the prospective foreign workers as referred to in paragraph (1) to the employer within 2 (two) working days, with a copy to the Directorate General of Immigration. “

Necessary documents

To get RPTKA, employers of foreign workers must submit an application to the Director-General of Manpower Placement and Employment Opportunity Development or the Director of Controlling the Use of Foreign Workers. To submit such an application, the applicant must fill in several pieces of information and upload supporting documents.

Several pieces of information must be filled in:

• The identity of the employers;
• Number of Indonesian workers employed;
• The plan for the absorption of Indonesian workers every year;
• Plans for the use of foreign workers every year according to work agreements or employment agreements;
• Associate Workforce Data; and
• Reasons for using foreign workers.

Necessary documents, inter alia:

• Draft work agreement or work agreement
• Organizational structure chart
• A statement letter for the appointment of a companion workforce
• A statement letter to implement education and job training for Indonesian workers under the qualifications of the position occupied by foreign workers
• A statement letter for an emergency and urgent condition from the employer in the event of an emergency.

The flow of registration for employers to get an account:

1. Apply for registration of foreign workforce online through the website tka-online.kemnaker.go.id by filling in the Taxpayer Identification Number (NPWP);
2. NPWP is automatically validated by the Online Information System for the Use of Foreign Workforce (SIPPTKA);
3. Complete data entry and document uploads;
4. The e-mail of employers is automatically validated by SIPPTKA;
5. The employer opens the verification link sent by SIPPTKA via e-mail;
6. The verifier checks the completeness of data entry and registration application documents for the foreign workforce;
7. Employers can use their account via the tka-online.kemnaker.go.id page.

Creating a new one

If you want to create a new RPTKA, you could abide by the following phases: 

1. Apply for a new RPTKA online using an account that has been registered in the way mentioned earlier;
2. RPTKA data verification and interview scheduling;
3. Online interview;
4. Printing RPTKA draft;
5. Assessment of the appropriateness of using foreign workers;
6. Assessment of the feasibility of using foreign workers;
7. Ratification of RPTKA;
8. Employers can print RPTKA through a company account.

RPTKA has been confirmed to occur per the period of use of foreign workers by TKA employers. This RPTKA must be modified if there is a change regarding:

• Address of the employer
• Name of the foreign employer
• Position to be held by foreign workers
• The need to use TKA for work that is temporary and not listed in the RPTKA
• The period for using TKA
• The number of foreign workers who exceeded the number of foreign workers in the initial RPTKA
• Appointment of Indonesian workers to assist the employed TKA.

The RPTKA changes are communicated to the Minister of Manpower.

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