The New Indonesian Short Term Work Permit and Other Notable Changes
May 31, 2014
By: Ferris Leong and Eileen Chen
With the introduction of new Procedures for Employing Foreign Manpower (Ministry of Manpower and Transmigration (MoMT) Regulation No. 12 of 2013, issued on 30 December 2013), Indonesia has made a number of changes to its employment immigration framework, most notable of which is the introduction of a new temporary work permit category, the Short Term Work Permit. The Regulations replace the 2008 MoMT Regulation on the same subject.
This article will look into the new Short Term Work Permit and a few other highlights of the new Regulations, to help acquaint employers with these recent rule changes.
New Short Term Work Permit category
The Regulations introduce a Short Term Work Permit which allows foreign nationals to enter Indonesia for project-based work for a non-extendable period of up to six months. The Regulations also provide some examples of project-based work including, but not limited to, installation or maintenance of machinery or software, manufacturing of products on a trial phase, and after-sales support.
By way of background, Indonesia already has an Emergency Work Permit category which was introduced under the 2008 regulations. The permit is valid for up to one month only with no extensions allowed. “Emergency work” involves work which, if not carried out immediately, could cause fatal losses and serious impact to the Indonesian public and/or the sponsoring business. The new Regulations retain the Emergency Work Permit category, and add a new requirement for the sponsor to submit a statement letter explaining the emergency conditions which necessitate the application for this work permit. The Regulations also ease the Emergency Work Permit application process – by eliminating previous requirements to provide a recommendation from the relevant government institution in charge of the related business sector, proof of insurance coverage, and evidence of a valid immigration permit – which should reduce overall processing times.
As with applications for standard long term work permits, applications for short term and emergency work permits also require the submission of an application for a Foreign Personnel Utilization Plan (RPTKA) and a Work Visa Recommendation (TA-01). An application for a Limited Stay Visa pre-approval (Telex-VITAS) is also required (filed with the immigration authorities) and once issued, the applicant must obtain his Limited Stay Visa (VITAS) from an Indonesian embassy or consulate.
The Short Term Work Permit and Emergency Work Permit should in theory provide more flexibility for employers deploying temporary workers who qualify under the requirements. However, it still remains to be seen how flexible they will be in implementation. (As noted above, the Emergency Work Permit was introduced in 2008, yet there are no signs that it is widely used or granted.) Furthermore, in our recent experience, we do not see any indication in the reduction of processing times for the Short Term Work Permit category. It should also be noted that Work Permit applications are processed by the MoMT, while re-entry and temporary residence requirements (namely, Multiple/Single Exit Re-entry Permits (MERP or SERP) and Limited Stay Permits (KITAS)) are processed by the Immigration Office. Under current practice, the Immigration Office does not issue an MERP or SERP for short term and emergency work permit holders, which could then curtail these individuals’ mobility while on assignment (and may also necessitate a fresh work permit application each time an individual leaves Indonesia and re-enters).
Exemption from eligibility requirements
The Regulations extend exemptions regarding certain work permit eligibility requirements for Short Term Work Permit applicants. In particular, they may be exempt from the usual criteria for educational requirements, work experience, and Indonesian language proficiency. In practice, this remains at the discretion of the MoMT and has also led to stricter scrutiny of long term work permit applications. The requirement to transfer knowledge to an Indonesian co-worker still remains for short term work permit applicants, but directors and commissioners continue to remain exempt from this requirement.
Tightening of RPTKA process
The MoMT is preparing a set of regulations to lay down the criteria for evaluating the sufficiency of a company’s Foreign Manpower Utilization Plan (RPTKA). The RPTKA sets out the company’s requirements for certain proposed job titles to be offered to foreign nationals and is typically the first step in the Indonesian work permit application process. The MoMT has indicated that it intends to increase field inspections in cases where potential misuse of the RPTKA is suspected, such as where the company’s foreign manpower projections appear to be well beyond actual foreign manpower hiring or engagement. In the past, MoMT Regulation No.02 of 2008 on the Procedures to Deploy Foreign Manpower merely entitled the relevant official of the MoMT to call the employer and coordinate with the relevant government agencies in evaluating the appropriateness of the foreign manpower deployment. On the other hand, the recently issued MoMT Regulation No.12/2013 stipulates that, if considered necessary, an evaluation on the appropriateness of foreign manpower deployment can be done by way of a field inspection.
What this means for employers
It is important that employers assess the qualifications and work nature of their employees in order to determine the appropriate work permit to apply for. Employers should keep in mind the long processing times for an Indonesian work permit and should continue to plan ahead, even for a short term work permit application (which currently continues to take the same amount of time as a long term work permit application). While the introduction of the short term work permit is a positive step forward (given the lengthy and bureaucratic process for the standard work permit), as is often the case in Indonesia, it remains to be seen how this will play out from a practical perspective (indeed, the regulations came out in December 2013 and the introduction of the short term work permit has still not proven to be overly beneficial).
In the long run, the introduction of the short-term work permit may begin to pave the way for shorter processing times and increased flexibility for both employers and Indonesian authorities alike. In the short run, however, this is yet to be seen.
