12 May 2014
MANPOWER REGULATION ON UTILIZATION OF FOREIGN EMPLOYEES

The Minister of Manpower and Transmigration has issued a new regulation, Number 12 of 2013, on Procedure for Utilization of Foreign Employees (“PERMENAKER 12/2013”), which replaces the older Regulation Number PER.02/MEN/III/2008. The new regulation is set to provide clearer and more thorough information regarding employment of foreign nationals in Indonesia.

 

• Job training program is now a top priority. The employer is required to create a training program for the Indonesian-based employees. The employer is also obliged to submit a capability statement confirming its capability to conduct and implement the job training program, as well as submit a report on the training program implementation.  The report is a prerequisite for the RPTKA’s extension.

 

• Foreign employees hired by government institutions, international organizations and foreign embassies in Indonesia are now also subject to this PERMENAKER 12/2013. However, the regulation only requires the IMTA and KITAS from these institutions and exempts them from the RPTKA requirement.

 

• RPTKA for Temporary Works. This particular license is designated for jobs that are meant to be completed within a short period of time of no longer than 6 months, such as one-time service type of jobs, mechanical installation jobs, after-sales service or jobs related to marketing products. Unlike the regular RPTKA, this RPTKA does not obligate the employer to set up a training program for the job education and training of the Indonesian-based employees. However, the regulation still requires the employer to appoint an Indonesian-based employee to work in tandem with the foreign employee. A copy of the service/working contract is required to be submitted along with the application for the RPTKA for Temporary Works.

 

• A major change in the authorities involved in the extension of the RPTKA and the IMTA. PERMENAKER 12/2013 takes away the roles of the Governor, the Regent and the Mayor in this matter and assigns them to the Service Office (Dinas) of the Ministry of Manpower and Transmigration at the provincial and/or regency/city level.

 

The regulation does not contain expressly stipulated sanctions for employers’ failure to comply with their obligation to have the job training program or any other obligation under PERMENAKER 12/2013. However, an employer’s failure may be an obstacle in the processing of its application for the RPTKA, IMTA and KITAS. (by: Indra Setiawan & Jaime Angelique)