Hiring Foreign Talent Under Japan’s Specified Skilled Worker Program Part 2: A Guide for Employees and Job-Seekers

Part 1 in this blog series explored how Japan’s aging population and declining workforce, in contrast with Indonesia’s relatively large proportion of unemployed youths, may position the two nations to uniquely dovetail and leverage one another for sustainable mutual growth.

This second instalment considers further details of Japan’s Specified Skilled Worker (SSW) Visa from the foreign national’s perspective and why Indonesia (and Indonesians) may be uniquely situated.

The Japan Ministry of Health, Labour and Welfare (MHLW) reported a birth rate of 758,631 in 2023, a 5.1% decrease from the previous year. This decline prompted Chief Cabinet Secretary Yoshimasa Hayashi to emphasize the urgency, stating, “The next six years or so until 2030, when the number of young people will rapidly decline, will be the last chance to reverse the trend.”

In contrast, Indonesia has by far the largest population among ASEAN countries and is poised to cross the 280 million mark in 2024 or 2025. According to Immigration Services Agency (ISA) statistics released in April 2024, Indonesians made up 16.4% of total number of SSWs in Japan (at 34,255), the second largest behind Vietnam. At a Human Resource forum held in Jakarta on 28 November 2023, a manpower official announced Indonesia’s goal of sending 100,000 skilled workers to Japan throughout the next five years, with 70,000 using the SSW visa program.

Japan’s Specified Skilled Worker Visa: Everything Applicants Need to Know

SSW was initially designed as a system to address severe labour shortages by accepting foreign nationals with expertise who can start working immediately. Unlike traditional work visas, obtaining an SSW visa can be more challenging as it requires passing an industry-specific skills examination and demonstrating proficiency in the Japanese language.

Applicants for SSW(i) are expected to have a significant level of knowledge or experience, while those aiming for SSW(ii) status need expert skills in specified industries. Skills tests are tailored to each industry, such as the Construction Industry Specified Skilled Worker (i) test for construction roles and agricultural skill assessment for the Agriculture Industry. If tests for a specific industry are unavailable in the home country, applicants may need to travel to Japan as Temporary Visitors to undergo examination.

Japanese language proficiency requirements are standardised, typically requiring the Japan Foundation Test for Basic Japanese (JFT-Basic) or Japanese Language Proficiency Test (JLPT) at the N4 level or higher. (Note that individuals who completed Technical Intern Training (ii) may be exempt from this aforementioned requirement.)

Once a prospective applicant meets the substantive requirements for SSW status, their employer can proceed to enter an employment contract with them, ensuring it meets the criteria outlined by relevant Ministerial Ordinances. Following this, the employer supports the applicant in applying for a Certificate of Eligibility or Change of Status, depending on whether the individual resides overseas or is already in Japan.

In both cases, the employer, acting as an Accepting Organization, must provide a Support Plan to the immigration authorities, along with the application. This plan outlines specific support in 10 categories covering the applicant's work, daily life and social integration.

As a condition to hold SSW(i) status, the individual is required to satisfy the following conditions:

• • • Be 18 years of age or older;
    • Be in good health;
    • Hold a valid passport, and cooperate with the authorities in the event of deportation;
    • Not have furnished security deposit (to a malicious intermediary organisations/broker, etc.);
    • If paying costs to a foreign organisation, has agreed with a full understanding of the amount paid and breakdown thereof;
    • Have complied with relevant procedures in their sending country (such as the Philippine Overseas Labour Office, etc.);
    • If paying costs for food/living expenses, have entered into an agreement detailing the benefits accruing from these expenses (documentation/statements to be provided, confirming the actual amounts were properly incurred); and
    • Comply with industry-specific standards, to be notified by the competent Ministry from time to time.

Depending on whether the individual holds SSW(i) or SSW(ii) status, specific standards must be met (particularly Japanese language proficiency for SSW(i) holders).

It is noted that SSW(i) holders may only be granted a six-month or one-year period of stay in the first instance, extendible up to a cumulative maximum of five years. SSW(ii) holders may be granted an initial six-month, one-year or three-year period of stay, extendible consecutively with no cumulative maximum. They may also sponsor dependents in Japan and apply for Permanent Residence after having completed the required duration of stay.

Why Indonesia

While Japan is keen to make the SSW program a success in solving its labour woes, Indonesia’s enthusiasm for the program is also evident. On 3 May 2024, Indonesia’s Manpower Minister Ida Fauziyah met with Japanese Deputy Minister of State for Health, Labour, and Welfare Miyazaki Masahisa to discuss Japan’s new employment regulations for foreign workers (prepared by the Japanese government).

During those discussions, Minister Ida remarked, “With support from Minister Masahisa, cooperative relations between Indonesia and Japan, especially in the field of employment, will be improved and continue to develop.”

Beyond the macroeconomic benefits, perhaps on the “cultural exchange” side of things, Indonesians have shown a significant and growing interest in Japanese culture over the years.

This fascination is evident in various aspects of daily life and popular culture in Indonesia, from something as casual as enjoying anime and manga, fashion and Japanese cuisine and to more conventional settings such as exchange programs for schools and government agencies, martial arts practice, as well as the continuous increase in Indonesian tourists to Japan over the years (Indonesian tourists increased 9% between February 2019 to February 2023, exceeding pre-COVID-19 levels).

The positive image of Japan in its technology, innovation, discipline and work ethic is appealing to Indonesians, while the Japanese likewise appreciate Indonesia’s rich cultural diversity, culinary flavours and vast natural beauty.

The cooperative relationship between Indonesia and Japan has been going on for more than 65 years (since both nations established diplomatic relations in 1958). In the employment sector, this collaboration is reflected in the apprenticeship program through the Technical Intern Train Program (TITP) which has been running since 1993. The two island nations also share many similarities, particularly with a large part of their populations being engaged in labour-intensive industries like agriculture, fisheries, automotive and even culinary.

From the Indonesians’ perspective, apart from the economic opportunities and relatively higher standard of living in Japan, the ability to experience living in a different culture may give rise to a sense of achievement.

At 711,732 (as of 2021), Indonesia has the second largest number of Japanese language learners in the world (after China). Under the curriculum announced in 2013, Japanese is one of the six languages included in elective courses in Indonesia’s high schools.

As of 2021, Indonesia has 2,958 institutions (second after China) providing Japanese-language education. Furthermore, with the prevalence of social media in recent years, even more Indonesians are being exposed to the livelihood in Japan and the Japanese way of life, and the SSW program can now present them with the opportunity to make living and working in Japan a reality.

Need to Know More?

Fragomen has a proven track record of providing quality immigration services in Japan for more than 20 years. Our professionals have the technical know-how to support the existing categories of SSW and keep abreast with its expected expansion over the coming years in conjunction with Japanese governmental policy and strategy.

For further information on Japan’s recently expanded immigration strategies, please contact Senior Business Immigration Manager Alfred Chong at [email protected] or Senior Business Immigration Consultant Jonathan Ying at [email protected].

This blog was published on 11 June 2024, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.