Common Pitfalls of Short Term Work Permit
April 28, 2016
In an ideal world, one would think it would be sensible for people intending to work for as short as 1 week to benefit from an expedited work permit application. Unfortunately, that is not always the case in practice in Indonesia.
A least until the end of 2015, there was a little practical distinction (in terms of the requirements, steps, and processing times) between the long-term and short-term work permit (‘STWP’).
The recently implemented STWP option in Indonesia, at first glance, may appear to be the long-awaited godsend for mobility professionals. However, it would be wise to take a deeper look into this option, as subtle pitfalls await the uninitiated. Some observations include:
- Different name, similar processing time
Contrary to what is written in the regulations, in practice, the STWP is not processed significantly faster as compared to the long-term work permit.
- Clearance (‘rekom’) requirement
There is still a requirement to obtain a clearance (‘rekom’) from the appropriate regulatory government body prior to filing the work permit to the Department of Manpower (DOM). This applies to certain heavily regulated industries, such as Oil & Gas. The ‘rekom’ can easily add at least 1 month to the overall processing time. There may be an exemption on a case-to-case basis, but this is highly discretionary.
- A ‘Six months work permit’ does not necessarily allow for six months’ work in Indonesia
Contrary to popular belief, the validity of the STWP is neither counted from the date of the work permit approval nor the applicant’s date of entry into Indonesia. Confusion arises when applicants discover that their ‘6-months’ STWP actually allows them to work in Indonesia for a significantly shorter period. There are even some instances where the newly approved work permit expires prior to the applicant’s entry into Indonesia. The reason for this oddity is due to a policy (in most jurisdictions within Indonesia except Jakarta) restricting the individual’s stay permit (KITAS) validity to the validity of the company’s Foreign Manpower Utilization Plan (RPTKA). Regardless of when the applicant enters Indonesia for work, they can only work up until either the RPTKA or the KITAS expires (whichever is earlier). While some immigration offices in Jakarta and surrounding areas have recently begun to count the work permit validity from the date of entry, we still recommend applicants to not delay their date of entry to Indonesia whenever possible.
Taking into consideration the above, it is important to not underestimate the lead time required for any mobilization, no matter how short the assignment will be. We recommend you work closely with your immigration professionals to strategize your mobilization plan and to identify any potential pitfalls as early as possible.
On the other hand, there are some bright spots with regard to the STWP route. For example, as long as the ‘rekom’ requirement does not apply, it frees most companies from the co-laborer (‘TKI pendamping’) and ratio requirements. This certainly benefits small companies who may not have sufficient local Indonesian employees (as now they have additional options to sponsor foreign experts for short term projects in Indonesia).
Last but not least, Indonesian immigration regulations are very fluid and are rapidly changing. With the implementation of the STWP, the Indonesian government may be taking the well-meaning initial step towards streamlining bureaucracy. The recent hiccups and pitfalls show that there is still a long way to go, but we are crossing our fingers for more positive changes in the future.
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