The President of Indonesia, Joko Widodo, has signed Presidential Regulation No. 20/2018 on the Recruitment of Foreign Workers in Indonesia.
This regulation has become fully effective since 26 June 2018, replacing the existing Presidential Regulation No. 72/2014. The enactment of 20/2018 simplifies the foreign workers’ permit and licensing, thus ensuring a faster and more efficient process.
One significant change is the compulsory RPTKA (Foreign Worker Recruitment Plans, or Rencana Penempatan Tenaga Kerja Asing) which used to be required for the positions is now treated differently. The new regulation excludes particular positions for which there is no need to submit this recruitment plan.
This new regulation on the recruitment of foreign workers makes it much easier for expats or foreign workers (Tenaga Kerja Asing – TKA) to work in Indonesia.
However, this does not mean that foreigners are allowed to work in Indonesia freely without any legal restrictions.
The Regulation NO. 20/2018 was implemented mainly due to the increased complaints from employers hiring foreign human resources. They requested the simplification of the application process for permits and licenses for foreigners as it was not only complicated but also time-consuming.
There are several changes employers should take note of:
The scope of employers of TKA in Indonesia is expanded in Regulation 20/2018 includes “other businesses”, therefore the current list of employers are as follows:
It is now possible for companies not to obtain RPTKA for the following positions:
The processing time for the permit of the recruitment of foreign worker is shortened from 2 months to 1.5 months, with IMTA application omitted from the process (since RPTKA has a similar function as IMTA). The change of the process is shown below:
Previous Process in Regulation No. 72/2014:
RPTKA → IMTA → Telex → ITAS / KITAS online → KITAS (duration: 2 months)
For peace of mind, the exact process should be confirmed with specialists.
VITAS (Limited-Stay Work Visa, or Visa Tinggal Terbatas) and ITAS (Limited-Stay Residency Visa, or Izin Tinggal Terbatas) should be harmonised into one process.
Regulations in Indonesia, particularly on foreign employment, change frequently, and it may be challenging to keep up with the latest updates at all times. That is why it is highly recommended to consult with a professional.
Contact Cekindo to find out how the changes will affect your recruitment operations in Indonesia.
If you need assistance in visa and permit applications, we will be happy to provide both guidance and assistance as well.
Simply fill in the form below to contact us.