Investors as well as foreign and local shareholders are free to select the members of their management and supervisory boards.
The hiring of directors, managers, technicians, foreign experts and even foreign skilled laborers by foreign companies is allowed as long as Indonesian workers are not available or do not meet the requirements of the job. The Department of Manpower and Transmigration issues regulations with a list of professional positions in each sector that are open to foreign manpower. Nevertheless, the department has loosened the list. Foreign workers who intend to work or remain working in Indonesia must get a work permit. A work permit is also required of foreign workers who serve as directors.
How to apply for a Work Permit in Indonesia
If a company wants to hire foreigners, it must propose a Foreign Worker Utilization Plan (RPTKA) to the Ministry of Manpower. The skills of the foreigners must be stated clearly because the government has rules governing foreign worker recruitment. Due to the high rate of domestic unemployment, a company must prove that domestic workers do not have the skills offered by foreign workers. A Work permit issued for a foreigner is not intended to grant working privileges to his or her family as well. A “dependent/husband/wife” must be sponsored and must have their own work permit in order to work in Indonesia. It also depends upon the market for the skills he or she has.
RPTKA Approval – The Latest Update
In March 2021, the Indonesian Government issued The Ministry of Manpower (MOM) Regulation No. 8/2021 that revoked MOM Regulations No. 10/2018 concerning The Employment of Foreign Workers. The recent regulation stipulates that RPTKA approval now serves as the basis for the authority to grant a limited stay visa (VITAS). Once you have received a VITAS, the immigration in Indonesia will issue your limited stay permit (KITAS/ITAS).
VITAS (VBS Limited Stay Visa/Temporary Stay Visa)
VITAS must be proposed for the employed husband or wife and the dependent, at the Indonesian Immigration Office in the city of intended residence once the TA-01 recommendation has been approved. They will send an approval letter to the Indonesian Embassy, where the foreigner and dependent can take the approval letter and obtain the stamped VITAS on their passports.
The VITAS stamp grants permission to enter Indonesia. The foreigner and the dependants must go to the Immigration Office to report their arrival, provide fingerprint data and complete the necessary documents within 3-7 days of their arrival in Indonesia. If this is not arranged within 3 days, it can result in legal action that can only be settled in court.
>Once all documents have been completed, the foreigner will be granted a Limited Stay Permit Card known as a KITAS card. Before KITAS is issued, KIM/S will be given. Many people misunderstand the limited stay permit as KIM/S. Actually, with KITAS, the foreigner will also obtain a Blue Foreigners Registration Book, which records the foreigner’s immigration status. All these documents are valuable and must be carefully safeguarded. The KITAS card and Blue Foreigners Registration Book both grant permits to stay in Indonesia for one year and can be renewed annually, up to two times without leaving Indonesia.
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