Expatriate Manpower, Business and Residence Visas.
One of the primary needs of any foreign direct investment company is to ensure the safe and legal passage of its workforce in and out of the country. Ganesha has supplied over one thousand residence visas (or business visas) in Indonesia. We have a flawless track record of mobilizing and demobilizing expatriates in full compliance with the law.
In 2006 the Indonesian Minister of Manpower and Transmigration enacted Ministerial Decree No. 7/MEN/III/2006 that requires all Indonesian companies filing work permit applications (Work Recommendation Applications) on behalf of foreign professional workers to pay application fees up front in order to receive approval of a Work Recommendation Application.
The new regulation also requires that all Work Recommendation Applications filed with the Ministry must be approved prior to the foreign worker's entry into Indonesia. Failure to obtain approval beforehand can result in refusal of the worker's entry into Indonesia and invalidation of the Work Recommendation Application. The recommended steps are as follows:
- The Indonesian sponsoring company initiates the work permit application process by submitting a Foreign Manpower Utilization Plan (RPTKA) to the Department of Manpower. The Department of Manpower generally processes the RPTKA within ten business days.
- Once the RPTKA application process is complete, the Indonesian sponsoring company must submit a TA-01 Work Recommendation Application to the Department of Manpower in Jakarta. The Department of Manpower usually issues an approved Worker Recommendation in four business days.
- With the approval of the TA-01, the foreign worker will obtain his or her VITAS (the entry visa required for work authorization purposes) at the Indonesian Embassy or Consulate in his or her country of legal residence or citizenship. If the foreign worker intends to begin working immediately upon entering Indonesia, he or she should not enter Indonesia until the work permit process has been finalized, as noted below. (Under the old regulation, foreign workers possessing their VITAS were allowed to enter Indonesia to continue the work permit application process in-country).
- According to the new regulation, the Indonesian sponsoring company, or the company's authorized representative, is required to pay a Special Skills Development Fund (DPKK) fee of US$1,200 (twelve months at US$100.-/month fee) at the time the Department of Manpower issues the approval of the Worker Recommendation (TA-01). The DPKK is paid to the Department of Manpower.
- Once the DPKK fee has been paid, the Department of Manpower will take an additional seven to ten business days to finalize the work permit application.
- Once the work permit application has been approved, the foreign worker may enter Indonesia with his or her VITAS to begin employment. (Under the old regulation, foreign nationals were allowed to enter Indonesia under a VITAS status, but were prohibited from working for up to 30 days until the work permit application process was completed.)
- Upon admission to Indonesia with his or her VITAS, the sponsoring company or immigration supplier in Indonesia should assist the worker in applying for his or her Long-Stay Visa (KITAS) and obtaining a Multiple Exit and Re-Entry Permit (MERP). This process can take approximately eight business days to conclude. Please note that the applicant must remain in Indonesia during this time and should not travel internationally until the process is completed.
- As the work permit application will have been approved prior to the foreign worker's arrival, the foreign worker may begin to work in Indonesia immediately upon arrival. Subsequent to his or her arrival, the foreign worker must submit an application with the Bureau of Immigration to obtain his or her KITAS (the long-stay visa) and MERP (multiple-exit and re-entry permit).
- A foreign worker is able to enter Indonesia on a business visa (e.g. "Single-Entry Visa No. 437" – attending meetings at Indonesian head office) while his or her work permit application is pending approval with the Department of Manpower. However, a foreign national cannot transition from a business visa to a long-stay status (KITAS & MERP) while remaining in Indonesia. Foreign nationals must depart Indonesia and apply for VITAS prior to re-entering the country to begin employment.
Companies and employees considering assignments to Indonesia are strongly advised to review the new procedural requirements with their Indonesian immigration suppliers prior to finalizing assignment start dates.
Aside from adhering to the appropriate processes, the availability of a complete set of documents is essential for a robust and compliant system. PTG also offers audit capability for your company. We will make sure that all documents are complete and correctly filed for any impromptu check by the authorities. This includes copies of passport, arrival dates, vitas, Kitas, Immigration Control Book, IMTA, STM, SKLD, Foreigner Information Data Form, SKSKP, SKTT, KIP, and Laporan Keberadaan (Report of Domicile).
Additionally, when urgent and specific skills are involved, Ganesha also offers assistance for the short-term expatriate deployment in Indonesia. We will contract hire the expatriate manpower as a subcontractor to you, pay the employee, pay all the employees’ expenses, and bill you in one package.
© PTG 2013