Use of Foreign Labor

Background

Indonesia Government issued a new regulation namely President Regulation No. 20 of 2018 on Use of Foreign Manpower, This regulation will enter into force 3 months after 29 March 2018

President Regulation No. 20 of 2018 was issued with the following background:

  • To support Indonesia national economic and expansion of employment opportunity, the deregulation of foreign manpower use is needed;
  • Use of foreign manpower regulated under President Regulation No. 72 of 2014  on Foreign Manpower Use and Education Implementation and Do-worker Manpower Training, needs to be adjusted to increase the investment.

Foreign manpower is a person employed in Indonesia to which the person is not a citizen and holds visa with a purpose to work in Indonesia’s territory.

Terms for Foreign Manpower Use

The provisions of using foreign manpower are:

  1. Every foreign employer is obligated to give priority to domestic workers (Indonesian) for all kind of position that are available and foreign manpower is prohibited to fill the position related to human resources and/or any other specified position determined by the Minister;
  2. Every foreign manpower employers who employ foreigners is obligated to have Foreign Mampower Recruitment Plan (“RPTKA”) that has been legalized by appointed official. The RPTKA is grantedMinister or appointed official no later than 2 days since the application is fully accepted.
  3. Foreign manpower employer is not obligated to have RPTKA to employ foreigners where the foreigner is a shareholder who takes position as board of directors or board of commissioners, diplomatic workers, and consular at embassy and foreigners at certain kind of work that the Government needs.
  4. Obligate to update data if there is changes in RPTKA such as names, employer, position to be filled, work time period of foreign workers, to the Minister or authorized official.
  5. For work that is urgent, employer can employ foreign manpower by submitting RPTKA legalization to Minister or authorized official no later than 2 days after the foreigner works.
  6. Employer that will employ the foreign manpower, deliver foreigner’s data to Minister or authorized official, then a receipt of notification will be delivered and compensation of using the foreign manpower for each foreign manpower employed after receipt of notification.
  7. Every foreign manpower in Indonesia must have Visa on Temporary Stay (“Vitas”) to work, submitted by the employer or foreign manpower to Minister or authorized official (Vitas application may also be regarded as Temporary Stay Permit)
  8. Compensation fee payment foreign manpower usage will be charged every year as long as the foreigners work in Indonesia's terriory.

Training and Education

Every employer is obligated to appoint domestic Indonesian workers as a co-worker, conduct education and training for Indonesian worker with the qualification  of position filled by foreign manpower and providing education and training of Bahasa Indonesia to foreign manpower.

Report, Coaching and Supervising

Every employer is obligated to report the implementation of foreign worker employment to the Minister. Coaching on education and training for foreign manpower use is conducted by the ministry having its field on labor and instance having its field on labor as according to their authority.

Sanctions,  Funding and Other Terms

Employer that violates regulation of foreign manpower use, training and education program co-worker, and report will be penalized according to the laws and regulations on labor. This training and education is implemented through data by way of data sharing and online integration.


Kenny Purba

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