Virginia, US

Jul 27 2020

Work Permit Cancellation Process Announced

Indonesia

At a glance

  • The Indonesian Ministry of Manpower announced the process employers must undertake to cancel a work permit (Notifikasi), after this was unclear for more than a year following changes regarding the work permit and stay permit process in late 2018.
  • Employers should follow the new process for any future work permit cancellations. Employers that fail to follow the new process may expect to see delayed work permit application approvals, as the MOM may request for the work permit cancellation process to be completed first before assessing new applications.

The situation

The Ministry of Manpower (MOM) has announced how employers can cancel a foreign national’s work permit (Notifikasi), a process that is mandatory for every foreign employee who has ceased employment in Indonesia.

A closer look

  • When to cancel work permit. Companies must start the work permit cancellation process once the employee’s in-country cancellation (EPO) or out-of-country cancellation (ERP) process has been completed.
  • Cancellation process. Employers must submit their work permit cancellation process on the company's TKA Online account with all relevant supporting documents after the stay permit (ITAS) cancellation process is completed.

 

Background

  • History of related regulations. The stay permit and work permit must be cancelled separately at the end of a foreign worker’s assignment. Before the most-recently updated work and stay permit regulations issued in late 2018, employers had to manually submit the foreign national’s work permit cancellation application to the MOM. The MOM had not made a service available to cancel the work permit until now.
  • Government intentions with new process. This new process demonstrates the Indonesian government’s ongoing plan to streamline the work permit process.

 

Impact

Companies should cancel all uncancelled work permits at this time. Fragomen can assist with this process.

Uncancelled work permits can cause delays in future work permit applications, as the MOM may request for the work permit cancellation process to be completed before assessing new applications.

Looking ahead

Indonesia is expected to remove the option to cancel work permits manually and will likely move most immigration applications online, in line with global digitalization efforts in the immigration landscape.

Fragomen will report on related developments.

We worked closely with PNB Immigration Law Firm to prepare this alert. This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].