Ministry of Manpower Regulation 35/2015
1. General purpose of controlling foreign workers:
- To protect the Indonesian labor market, to ensure that Indonesians can work in their field and also get proper compensation/salary
- To protect Indonesian workers from globalization, including from the ASEAN Community. It is implied that any foreign workers working in Indonesia should have proper competency based on the positions allowed by regulation to be filled by foreign workers.
- To prevent professional Indonesian workers from seeking jobs outside Indonesia, to give them appreciation and a salary based on their profession and expertise
- To save foreign exchange being used by companies to pay foreign workers.
- The new regulation mentioned that Associations (UB-Usaha Bersama) and Cooperatives are no longer allowed to hire foreign workers, unless permitted under prevailing laws and regulations
2. Significant changes in requirements to hire foreign workers:
|Old Regulation (MoM 12/2013)||New Regulation (MoM 16/2015)|
|Foreign workers need to have a similar education background with their appointed position||No Changes|
|Diploma/resume/certificate of competence relevant to their appointed position, at least five years’ experience needed||Certificate of competence, Have at least five years’ experience relevant to the position|
|Obligation to transfer knowledge to Indonesian workers (TKI Pendamping)||No changes|
|Bahasa Indonesia competency requirement||No longer required|
|Evidence of an insurance from Indonesian entity provider|
|Enrolled in National Social Security Program (SJSN) (if stay more than 6 months)|
|Taxpayer Registration Number (NPWP) (if stay for more than 6 months)|
The new regulation states that employers of foreign manpower must employ at least 10 Indonesian workers for every one foreign worker.
Update October 2015: this ratio requirement was removed from the 35/2015 regulation update.
4. Temporary RPTKA and Temporary IMTA is now required for:
Providing guidance, counselling, training in implementation and development of innovative industrial technology to improve product quality and design and cooperation in offshore marketing of Indonesian goods and services
- Making commercial films with a permit from the authorized institution
Giving seminars/lectures Participating in meetings with the central or representative office in Indonesia Conducting audits, quality, control and inspections of Indonesia branches
- Foreign manpower on probation
Temporary work permit no longer required for attending meetings and giving trainings
Previous work permit regulation (16/2015) stated that for the purpose of attending meetings, giving speeches, giving training for the purpose of increasing industrial quality, for one time job assignments a foreigner is required to have temporary work permit.
This confused foreign investors as those activities previously could be held under a business visa. Ministry of Manpower responded and from the updated regulation (35/2015) this article has been removed.
IMTA – Foreign Workers Employment Permit is now required for foreign-domiciled Board of , Directors, Board of Commissioners, Patrons, Executives and Supervisors
Update October 2015: this article was removed from the regulation and non-resident commissioners and directors are no longer required to have work permit.
6. Appointed Indonesian understudy worker should have relevant education background with foreign worker’s appointed position. Exception applied for: foreign workers under Temporary RPTKA and Urgent RPTKA, Board of Directors, Board of Commissioners, Patrons, Executives and Supervisors.
7. The new regulation introduces an online system for the application process. Ekspos/Interview (Penilaian Kelayakan) by Ministry of Manpower can now be done via Skype, one company only allowed to have one account. The online application can be submitted to www.tka-online.depnakertrans.go.id,
9. RPTKA document requirements Download form here
|General RPTKA||Temporary RPTKA|
|Process||Maximum 3 days||Maximum 3 days|
|Max. duration||Max 5 years, extendable||Max 1 month, not extendable|
10. Statement letter to give education and training to Indonesian workers related to assigned position to foreign workers
11. Compulsory company manpower report
10. IMTA document requirements Download form here
|General IMTA||Temporary IMTA|
|Process||Maximum 3 days||Maximum 2 days|
|Max. duration||Max 1 years, extendable||Max 1 month, not extendable|
Extending work permit
In order to extend work permit (IMTA), following documents need to be prepared:
- Proof of payment of DPKK (US$1200/year)
- Copy of proof of payment to the foreign worker
- Copy of foreign worker tax card (NPWP)
- Copy of insurance policy from an Indonesian-based insurance company
- Copy of joining national security program
- Copy of appointment of Indonesian co-worker (only for Non Director and Non Commissioner)
- Realization report of transfer of knowledge and Indonesian co-worker training
The changes in the regulations make it absolutely crucial that foreign nationals extend their limited stay permits and work permits on time. Otherwise they’ll permits lose validity and the process needs to be started from beginning again and this time following the new regulations.
Start the extension process at least 2 months before the KITAS and IMTA expire.