New Regulation Issued on Streamlined Work Visa Process

The situation

Indonesia’s Ministry of Law and Human Rights (MOLHR) recently released a regulation clarifying the changes to Limited Stay Visa (VITAS) and Limited Stay Permit (KITAS) application and issuance rules. The changes are expected to be implemented within the next two months.

A closer look

Key changes to the VITAS and KITAS will include the following, and are also discussed in further detail here:

• Changes to VITAS process. Most notably, Work Permit applicants will need to personally appear at an Indonesian consular post for an interview. Other changes include full implementation of an online application system announced by the government in July, a more coordinated VITAS pre-approval process and faster standard processing times.
  • Main impacts.
    • Though the personal appearance requirement would add an administrative burden on the Work Permit applicant, a third-party representative may still be able to prepare and submit the Work Permit application with the applicant merely appearing for an interview at the consulate. However, this would depend on each consulate’s practices, which can vary depending on location.
       

• Changes to KITAS process. Most notably, a KITAS-on-arrival service is expected to become available at designated immigration entry points in Indonesia, which may significantly reduce the administrative burden on eligible travelers. Other changes may include on-arrival VITAS and KITAS for urgent and emergency work, a longer KITAS validity, and faster KITAS standard processing, among other improvements.
  • Main impacts. 
    • Once the KITAS-on arrival program is implemented, foreign nationals can start working as soon as they enter Indonesia, instead of waiting seven to ten business days to complete the biometric registration and obtain a KITAS at a local immigration office after arrival.
    • If the KITAS validity period is increased up to two years, foreign nationals may experience a reduced administrative burden as they would not need to file an extension application every year, as is currently required.

Background

Foreign nationals seeking to work in Indonesia must obtain a Work Permit, VITAS and KITAS. The new regulation complements the regulation issued by the Ministry of Manpower (MOM) in July that clarifies the Work Permit rules relating to the Presidential Regulation published in April. This corresponding regulation clarifies the work visa (VITAS and KITAS) rules.

For more background, access Fragomen’s blog on this topic here.

Looking ahead

• Timeframe of changes. Due to the multiple government agencies involved in the immigration process in Indonesia, it is likely that the changes mentioned above will take effect only after the government has established the infrastructure necessary for the changes. Therefore, companies and foreign nationals should work with their Fragomen professional to ensure compliance with current rules, which will apply until the new rules are implemented in practice.
• Non-implementation possible. It is possible that not all the rules mentioned here will be implemented, as there have been instances in the past where government authorities in Indonesia have issued regulations that were eventually set aside.
• Regional differences. Inconsistencies in implementation are also expected as the local and regional authorities adapt the regulations to their existing processes – a common issue in the APAC region and globally. For example, China's unified work authorization system still results in regional differences in the way work authorization categories are applied, and in Vietnam, regional differences are common despite national rule changes by the labor department. Globally, Kazakhstan and Belgium are examples of countries that also haves regional differences in national rule interpretation.
• Move to streamline immigration process. Though the changes are likely to take a long time to be implemented and there may be delays and inconsistencies in their application, they display Indonesia’s intent to attract foreign talent by streamlining and coordinating immigration processes among the various agencies. Fragomen projects that since 2019 is an election year in Indonesia, it is possible that many policies may be reversed or amended in the future. Companies are advised to stay up to date with immigration policy changes. Fragomen will report on relevant changes as they occur.

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].