Understanding the procedures to obtain work and stay permits (ITAS) in Indonesia is an important step for investors and entrepreneurs looking to operate in the country. Regulation Kemnaker 10/2018, derived from Presidential Regulation 20/2018, serves as the main guideline for managing work permit applications for foreign workers. In this process, the Foreign Manpower Utilization Plan (RPTKA) and the Notification of Employment of Foreign Workers (IMTA) are key in opening the door to success.
What are RPTKA and IMTA Notification?
RPTKA is a mandatory planning document required for companies that intend to employ foreign workers (TKA) in their business operations in Indonesia. Issued by the Ministry of Manpower, this document serves as a guideline for companies to utilize TKA responsibly and proportionally.
IMTA Notification, on the other hand, is an official permit granted to companies to employ specific TKA in accordance with the approved RPTKA. This permit serves as legal proof for TKA to work in Indonesia.
Who Needs RPTKA and IMTA Notification?
RPTKA and IMTA notifications are mandatory for various entities, including Foreign Investment Companies (PMA), Domestic Investment Companies (PMDN), and institutions/organizations employing foreign workers.
In the latest revision of Regulation Kemnaker 10/2018, work permits for foreign workers now adopt two new licenses: the Foreign Manpower Placement Plan (RPTKA) specifying the foreign worker's position, and the Announcement detailing their personal information. This replaces the separate IMTA system. Despite being a mere name change, the practice remains the same. A foreign worker can only commence work in Indonesia after obtaining both the RPTKA and Announcement from Kemnaker.
Investors Do Not Require A Work Permits
In case foreign directors and commissioners also hold a substantial amount of shares in the same Indonesian Company (PT PMA), the do not require a work permit (Notification and RPTKA) from the MOM. The Indonesian government considers these foreigners investors and as such they can immediately apply for an Investor Stay Permit (ITAS). The main advantage of the Investor Stay Permit (ITAS) is that these investors a no longer under the obligation to pay the monthly USD 100.00 to the Manpower Development Fund (DPKK / DKP-TKA).
Indonesian Language Requirement
Under the MOM Regulation 10/2018 it is mandatory for companies to facilitate Indonesian language education and training for foreigners who hold a long term work permit. The language training is not required for directors, commissioners and foreign workers who are using a short term or urgent/emergency work permit. The MOM has stated that the foreign workers require a language training certificate from an authorized institution. Until to date, the MOM has not implemented the Indonesian language requirement, and it is not clear when (or if) this will be implemented in the near future. Historically, the language requirement has always met great resistance from the international business community in Indonesia.
Double Job Title Exemption
Foreign workers in Indonesia are generally restricted to holding one position in one company. However, there are interesting exceptions in Regulation Kemnaker 10/2018. Certain sectors such as education, oil and gas, and the digital economy allow foreign workers to hold multiple positions across multiple companies. Additionally, foreign directors and commissioners are allowed to hold positions in more than one Indonesian company. However, each company they work for must have its own work permit for the respective foreign worker.
Urgent Work Permits
In emergency work permits, foreign workers currently cannot enter Indonesia without RPTKA and IMTA. According to Regulation Kemnaker 10/2018, they can enter directly with Visa on Arrival and start working, with RPTKA submitted within 2 days of starting the job.
RPTKA and IMTA Notification Validity Period
RPTKA:
The validity period of RPTKA can vary from one month, three months, one year, two years, up to a maximum of five years.
Can be extended considering labor market conditions
6 months for one-time projects
1 month for urgent projects
IMTA Notification:
Aligned with the RPTKA validity period
Requirements:
Expatriate
Scanned color copy of the expatriate's passport with a minimum of 4 blank pages still available and at least 18 months validity. And scanned copy of the identification page and cover of the expatriate's passport, with a minimum validity of 12 months for the passport (the identity page).
Photograph of expatriate in a red background
Complete doses of Vaccination Certificate.
Curriculum Vitae (CV) of the expatriate.
Certificate of degree graduated (academic background).
Reference Letter from previous company.
Details of the expatriate address (with domicile letter).
Health Insurance
Current KITAS/KITAP.
Stamp of current KITAS/KITAP.
Scanned copy of ID Card/KTP of the KITAS/KITAP guarantor.
Scanned copy of Family Card/KK of KITAS/KITAP guarantor.
Company Sponsor
Company's deed of establishment and its amendments (if any)/ Akta Pendirian Perusahaan dan Perubahannya (jika ada)
Decree Approval (Legalization) from the Ministry of Law and Human Rights (MoLHR) and its amendments (if any)/SK Kehakiman Pendirian Perusahaan dan Perubahannya (jika ada)
Company's Tax Registration Number/NPWP Perusahaan
Business License of OSS RBA/Izin Usaha OSS RBA
Business Identification Number/Nomor Induk Berusaha (NIB) OSS RBA
Company's Organization Structure
Mandatory Manpower Report/Wajib Lapor Ketenagakerjaan Perusahaan (WLKP)
BPJS Employment registration number/certificate/Sertifikat BPJS Ketenagakerjaan Perusahaan
ID Card, NPWP, and photograph of the Indonesian (local) Director/KTP, NPWP, pas foto Direktur lokal
Blank papers with the company's letterhead (for application letters) - optional
Employment contract between the company sponsor and the expatriate/Kontrak Kerja antara perusahaan dan Tenaga Kerja Asing (draft provided)
ID card of the Indonesian counterpart/KTP Tenaga Kerja Indonesia Pendamping
Appointment letter to the Indonesian counterpart/Surat Penunjukan TKI Pendamping
Company's bank account statement - balance minimum USD 2,000/Rekening koran Perusahaan
Username and password of TKA online account and immigration account (if any)
As per Manpower regulation, 1 foreign worker company must have at least minimum 10 local employees.
Tips for Successfully Obtaining RPTKA and IMTA Notification
Submit RPTKA and IMTA Notification applications well in advance
Ensure all documents are complete and compliant
Follow the applicable guidelines and procedures
If facing difficulties, seek consultation from experts
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