On 26th of March 2018, The President of the Republic of Indonesia, Joko Widodo, has signed the Presidential Regulation No. 20 of 2018 concerning the Utilization of Foreign Workers in Indonesia. The purpose of this regulation is to support the national economy and expand employment opportunities through investment in Indonesia. Until end of 2017, based on the data in the Ministry of Manpower of the Republic of Indonesia, the utilization of foreign workers in Indonesia has reached 85.974 in total. Although its only 0,3% from the entire population in Indonesia, it is possible that the number of foreign workers may continue to grow in the coming years.
For the company that employs foreign workers, there are several requirements for foreign workers to be employed legally in Indonesia, including:
- Possess education that suits the qualifications of the position to be held
- Having work experience of at least 5 (five) years or hold a certificate of competency that matches the position needed.
- Possess skills and competency at work, the foreign worker will not be approved if he/she does not possess such required skills and competencies.
Beside those above qualifications and competencies requirements, the following are the requirements that must be considered and fulfilled if the foreign workers would like to work legally in Indonesia pursuant to the Regulation of the Minister of Manpower No. 10 of 2018, which includes:
Manpower Utilization Plan or RPTKA can be applied online through www.tka-online.naker.go.id by filling and uploading required data of the respective foreign worker(s). After all required data and documents completed and submitted, then further feasibility assessment of the RPTKA will be carried out based on the applicable list of positions issued by the Ministry of Manpower. If based on the assessment result the positions of the foreign worker declared feasible, then the RPTKA will be approved by the Ministry of Manpower.
B. Notification and DKP-TKA Payment
The Ministry of Manpower will issue Notification as an approval for the utilization of foreign workers which will be issued by the Directorate General of the Development of Manpower Placement and Expansion of Employment Opportunity, of the Ministry of Manpower (“DG BINAPENTA”) as the basis for the issuance of Limited Stay Permit (ITAS).
The process to apply notification for the approval of the foreign worker utilization also done through online system by filling and uploading the foreign workers’ data and required documents. Upon receiving the Notification, the employer who apply for the utilization of foreign workers must pay the Compensation for the Use of Foreign Manpower (DKP-TKA). Once the payment has been made by the applicant, the DG BINAPENTA will issue the Notification and evidence of DKP-TKA payment to the Director General of Immigration, of the Ministry of Law and Human Rights through via online. The Notification will further used by the Director General of Immigration for the process of issuing the Limited Stay Visa (VITAS) for the respective foreign workers.
For companies that wish to employ foreign workers, they must duly observe the applicable positions that can held by foreign workers as well as positions which are restricted for foreign workers. The followings are positions which are restricted for foreign workers based on the Minister of Manpower Decree No. 40 of 2012 concerning Specific Positions Restricted For Foreign Workers, namely:
- Personnel Director
- Industrial Relations Manager
- Human Resources Manager
- Personnel Development Supervisor
- Personnel Recruitment Supervisor
- Personnel Placement Supervisor
- Employee Career Development Supervisor
- Human Resources Administrator
- Chief Executive Officer
- Personnel and Career Specialist
- Personnel Specialist
- Career Advisor
- Job Advisor
- Job Advisor and Counseling
- Employee Mediator
- Job Training Administrator
- Job Interviewer
- Job Analyst
- Occupational Safety Specialist
Author: Muhammad Rafiq Abdillah/Andry Yudistira/ Halimah Nur Pratiwi