Clarifying Regulations Issued for April Decree

The situation

The Ministry of Manpower (MOM) has released a regulation clarifying the changes set out in the April 2018 Presidential Decree.

A closer look

The MOM has clarified information on the following topics:

• Foreign Manpower Utilization Plan (RPTKA) changes.
  • Clarified details. The regulation sets out new processing times, new exemptions and new rules for multiple employers.
  • Documentary requirements remain unclear. The regulation does not confirm how the new system will be implemented or provide much detail on the documentary requirements, as was anticipated.  Further clarifications from the MOM are expected in the future.
     
• Work Permit (IMTA) changes.
  • New name. The work authorization issued by the MOM to a foreign worker is referred to as the Notifikasi in the new regulation, instead of the IMTA (as it was previously known).
  • Shorter processing time. The MOM regulation stipulates that it will process the Notifikasi within two business days, but actual processing times remain to be seen.
     
• Other changes.
  • Language requirement. It is mandatory for companies to facilitate Indonesian Language proficiency classes for long-term work permit holders. This can be facilitated by the company itself or through an external education provider. The MOM has not confirmed the course specifications or the method of assessment of language proficiency.
  • Online systems. The MOM, Ministry of Law and Human Rights (MOLHR) and the Ministry of Finance will integrate their online portals to streamline the work and stay permit application process.  However, until the new online portal is live, applications are still being coursed through the current process.
  • Co-laborer training. Training for co-laborers must be facilitated by an accredited board recognized by the government and/or a licensed professional certification body.
  • Alternative proof of insurance. Employers may enroll the foreign worker in a private insurance policy instead of the BPJS Kesehatan program (Indonesia’s healthcare and health insurance program).
  • Urgent and emergency work permit. The MOM has confirmed that an employer may apply for an RPTKA for a foreign worker for urgent and emergency work within two days of the foreign worker’s arrival. However, it is unclear what the consequences are for a foreign worker who has started working on the basis of this new rule whose RPTKA application is subsequently rejected.
  • Limited Stay Visas (VITAS) and Limited Stay Permits (ITAS). VITAS and ITAS applications fall under the authority of the MOLHR, not the MOM. The MOLHR is therefore likely to issue further regulations to further delineate the process of obtaining the VITAS and ITAS.

 

Transitional measures

All existing RPTKA and work permits will remain valid up to their expiry dates. 

Looking ahead

The MOM regulations are stipulated to be effective July 11, 2018. However, practically, current work permit and immigration regulations and rules continue to apply until the new MOM and MOLHR implementing regulations are in effect and when the new online portal is functional, which is expected to occur in the next few months.

Fragomen will continue to monitor the situation and provide further updates as new information is released.

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].