Requirements and Procedures to Employ Temporary Foreign Workers

PERTANYAAN

Our company is having issues with imported goods from Vietnam. If we bring in employees from Vietnamese companies to carry out reparations in Indonesia, is this allowed? It takes about 5 to 10 operators from there. Are there any specific requirements as they will only work for a few days? Thank you.

INTISARI JAWABAN

Any employer who employs Foreign Workers (Tenaga Kerja Asing/ “TKA”) for temporary work needs to have a Foreign Workers Recruitment Plan (“Rencana Penggunaan Tenaga Kerja Asing/ “RPTKA”) which is validated by the Central Government.

What are the requirements for RPTKA validation? Are there any other requirements besides RPTKA ownership?

Please read the review below for a further explanation.

 

ULASAN LENGKAP

This article is an English translation of Syarat dan Prosedur Mempekerjakan TKA untuk Sementara written by Dian Dwi Jayanti, S.H., and was published on Tuesday, 21 March 2023.

This article below is the second update with the same title, which was first written by Alfin Sulaiman, S.H., M.H. and first published on Monday, 7 December 2015, and first updated on Friday, 16 September 2022 by David Christian, S.H.

All legal information available on Klinik hukumonline.com has been prepared for educational purposes only and is general in nature (read the complete Disclaimer). In order to obtain legal advice specific to your case, please consult with Justika Partner Consultant.

The Requirements to Employ Foreign Workers in Indonesia

Prior to answering your question, we should first understand what is meant by a Foreign Worker (Tenaga Kerja Asing/ “TKA”) who is a Foreign Citizen (Warga Negara Asing/ “WNA”) who holds a visa with the intention to work in Indonesian territory.[1] Foreign workers may be employed in Indonesia only in an employment relationship for certain positions and a specified period as well as having competence in accordance with positions that will be occupied.[2]

Those who may provide employment/work to Foreign Workers are referred to as Foreign Worker Employers a.k.a. Pemberi Kerja TKA in Bahasa Indonesia, which include:[3]

1. government agencies, representatives of foreign countries, and international agencies;
2. foreign trade representative offices, foreign company representative offices, and foreign news agencies operating in Indonesia;
3. foreign private companies operating in Indonesia;
4. legal entities in the form of a Limited-Liability Company or Foundation, which are established based on Indonesian law or foreign business entities which are registered with the authorized agency, and are exempted for limited-liability companies in the form of individual legal entities;
5. social, religious, educational, and cultural institutions;
6. impresario businesses; and
7. other business entities provided that they are allowed by the law to recruit Foreign Workers.

Furthermore, any employer who employs foreign workers must possess a Foreign Workers Recruitment Plan (“Rencana Penggunaan Tenaga Kerja Asing/ “RPTKA”) that is validated by the Central Government.[4] RPTKA is a plan for the recruitment of TKA in certain positions and for a certain period.[5]

Moreover, for RPTKA, a validation must be conducted, or the approval for the recruitment of Foreign Workers which is validated by the minister in charge of government affairs in the manpower sector or the appointed officials.[6] The Validation of RPTKA consists of:[7]

1. RPTKA for temporary work, granted for a maximum period of 6 (six) months and cannot be extended;
2. RPTKA for work more than 6 (six) months, granted directly for a maximum period of 2 (two) years and may be extended;
3. RPTKA non-DKPTKA, granted directly for a maximum period of 2 (two) years and may be extended;
4. RPTKA KEK, granted for a maximum period of 5 (five) years and may be extended. Meanwhile, the position of the board of directors or commissioners, shall be given once and is valid as long as the TKA concerned becomes a board of directors or commissioners.

According to your question, since the Foreign Workers you are referring to will only work for a few days, we will assume that the Foreign Workers are temporary. Thus, the application for RPTKA Validation for temporary works shall be granted for the following activities:[8]

1. commercial film-making and has obtained a permit from the authorized agency;
2. audit, production quality control, or inspection in a branch company in Indonesia for a period of more than 1 (one) month;
3. works related to the installation of machinery, electrical, after-sales service, or products that are in the business exploration period;
4. impresario service business; or
5. works that are finished at once or works that are less than 6 (six) months.

Thus, based on the abovementioned provisions, in order to answer your question that you are looking to hire TKA from Vietnam to conduct reparations in Indonesia within a few days, in our opinion, you should submit an RPTKA validation application for temporary work.

Procedure for Application for RPTKA Validation for Temporary Works

The application for RPTKA Validation for temporary works shall be submitted online through the TKA Online by:[9]

1. filling out data application that contains:

1. identity of the TKA Employer;
2. reasons for TKA utilization;
3. positions that will be occupied by TKA;
4. number of TKA;
5. TKA utilization period; and
6. TKA work location.

 

2. uploading documents in the form of:

1. an application letter for RPTKA Validation;
2. an assignment letter or a power of attorney from the head of the TKA Employer;
3. NIB and/or business license of the TKA Employer;
4. deed and decision on the validation of establishment and/or amendment from the authorized agency;
5. proof of manpower mandatory report in the company;
6. domicile of the TKA Employer; and
7. draft of the employment agreement or other agreements.

Furthermore, the feasibility assessment of RPTKA Validation shall be conducted by the Director-General or the Director since the application for RPTKA Validation is declared complete and valid.[10] The feasibility assessment of RPTKA Validation shall be conducted face-to-face through online means.[11] The Director-General or Director shall issue the feasibility assessment result within 2 (two) business days at the latest since the implementation date of the feasibility assessment is declared feasible based on the feasibility assessment.[12]

Based on the feasibility assessment result, the Foreign Worker Employers shall submit data of Foreign Worker candidates via online means to the Director through the TKA Online by:[13]

1. filling out data application of Foreign Worker candidates that consists of:

1. identity of Foreign Worker, consisting of the name of the Foreign Worker, place of birth, date of birth, sex, education, marital status, nationality, passport number, passport expiration date, passport issuance place, residential address, postal code, e-mail address, and phone number;
2. position of the Foreign Worker and Foreign Worker work period;
3. Foreign Worker work location;
4. insurance policy number or membership number in the social security for employment program; and
5. determination of code and Foreign Worker domicile location.

 

2. uploading:

1. Foreign Worker documents in the form of:

1. education diploma;
2. competency certificates or work experience;
3. an employment agreement or other agreements with the Foreign Worker Employer;
4. nationality passport of the Foreign Worker (in color); and
5. 4x6 color passport photo with red background.

 

2. the Foreign Worker Employer documents, in the form of:

1. an application letter for RPTKA Validation;
2. an assignment letter or a power of attorney from the head of the Foreign Worker Employer;
3. an application letter to the Director-General of Immigration for application of visa for work;
4. current or savings account of the Foreign Worker Employer;
5. an approval letter of IDR0.00 (zero rupiah);
6. a statement letter of assignment for Foreign Worker Understudy Workers; and
7. a statement letter of the Foreign Worker Employer as the Foreign Worker guarantor.

As information, the provisions on the statement letter of assignment for Foreign Worker Understudy Workers shall be exempted one of them is for temporary work.[14]

In the event that the data of the Foreign Worker candidate is ready at the time of application of the RPTKA Validation, the Foreign Worker Employer may submit it at once by filling out the data application of the Foreign Worker candidate and uploading document requirements for the Foreign Worker candidate through the TKA Online.[15] Based on the data of Foreign Worker candidate that has been submitted online through the TKA Online, the Director shall conduct a verification within 2 (two) business days at the latest.[16] Then, in the event that the data of the Foreign Worker candidate is declared complete and valid, the Director shall issue a notification letter for Compensation Fund for the Utilization of TKA (Dana Kompensasi Penggunaan TKA/ “DKPTKA”) payment to the Foreign Worker Employer, and after the payment of DKPTKA, the Director shall issue RPTKA Validation.[17]

Requirements to employ Foreign Workers along with the complete procedure can be found in the TKA Online Handbook

Also read: Requirements for Foreign Workers to Work in Indonesia

Submission of Data on Prospective Foreign Workers for Visa Recommendations and Stay Permits

In addition to requiring RPTKA validation for temporary work, Foreign Workers who will work in Indonesia also require visas and stay permits. The RPTKA Validation as referred shall be used as a recommendation to obtain visas and stay permits for work purposes for Foreign Workers.[18]

Limited or temporary stay permit visas are granted for working foreigners,[19] in this case, one of them is for the activity of installing and repairing machines.[20]

Application for temporary stay permit visas in order to work may be submitted by Guarantor to the Immigration Official at the Directorate General of Immigration through application by enclosing:[21]

1. letter of guarantee from the Guarantor who is the employer of the Foreigner;
2. Legal and Valid Nationality Passport:

1. minimum of 12 (twelve) months for those who will work in the Indonesian territory for a maximum of 180 (one hundred and eighty) days;
2. minimum of 18 (eighteen) months for those who will work or stay in the Indonesian territory for a maximum of 1 (one) year; or
3. minimum of 30 (thirty) months for those who will work or stay in the Indonesian territory for a maximum of 2 (two) years.

 

3. proof of having the cost of living for themselves and/or their families during their stay in the Indonesian territory of at least US$2000 (two thousand US dollars) or its equivalent;
4. 2 (two) recent color photographs with a size of 4 cm x 6 cm (four centimeters by six centimeters);
5. proof of insurance ownership in an insurance company with an Indonesian legal entity which includes health financing as long as the Foreigner is in Indonesian territory; and
6. letter of recommendation from the authorized agency in charge of manpower or other relevant agencies.

Also read: Types of Indonesian Visas and Their Uses

In conclusion, in order to hire employees from Vietnam in order to carry out reparations in Indonesia for several days, you will need to submit an RPTKA validation application for temporary work. In addition, you must also submit the data of the prospective Foreign Worker to the Immigration Official at the Directorate-General of Immigration in order to obtain a visa and limited stay permit as long as the Foreign Worker is working in Indonesia.

Enrich your legal research with the latest bilingual legal analysis, as well as the collection of regulatory translations integrated into Hukumonline Pro, click here to learn more.

These are the answers we can provide, we hope you will find them useful.

Legal Basis:

1. Law Number 13 of 2003 on Manpower;
2. Regulation of the Government in Lieu of Law Number 2 of 2022 on Job Creation;
3. Regulation of the Government Number 34 of 2021 on the Recruitment of Foreign Workers;
4. Regulation of the Minister of Manpower Number 8 of 2021 on Implementing Regulation of Regulation of the Government Number 34 of 2021 on the Utilization of Foreign Workers;
5. Regulation of the Minister of Law and Human Rights Number 29 of 2021 on Visa and Stay Permit;

Reference:

1. Buku Panduan TKA Online, accessed on Monday, 20 March 2023 at 14.00 West Indonesian Time (zone);
2. TKA Online, accessed on Monday, 20 March 2023 at 14.00 West Indonesian Time (zone).

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[1] Article 1 number 13 Law Number 13 of 2003 on Manpower (“Law 13/2003”).

[2] Article 81 number 4 Regulation of the Government in Lieu of Law Number 2 of 2022 on Job Creation (“Perppu 2/2022”) that has been passed into Law on 21 March 2023, which amended Article 42 section (4) Law 13/2003.

[3] Article 3 section (1) jo. section (2) Regulation of the Government Number 34 of 2021 on the Recruitment of Foreign Workers (“Government Regulation 34/2021”).

[4] Article 81 number 4 Perppu 2/2022 that has been passed into Law on 21 March 2023, which amended Article 42 section (1) Law 13/2003.

[5] Article 1 number 4 Government Regulation 34/2021.

[6] Article 1 number 5 Government Regulation 34/2021.

[7] Article 16 jo. Article 17 Government Regulation 34/2021.

[8] Article 8 Regulation of the Minister of Manpower Number 8 of 2021 on Implementing Regulation of Regulation of the Government Number 34 of 2021 on the Utilization of Foreign Workers (“Regulation of the Minister of Manpower 8/2021”).

[9] Article 9 Regulation of the Minister of Manpower 8/2021.

[10] Article 13 section (1) Regulation of the Minister of Manpower 8/2021.

[11] Article 14 section (1) Regulation of the Minister of Manpower 8/2021.

[12] Article 14 section (2) Regulation of the Minister of Manpower 8/2021.

[13] Article 15 section (1) Regulation of the Minister of Manpower 8/2021.

[14] Article 15 section (3) huruf d Regulation of the Minister of Manpower 8/2021.

[15] Article 17 Regulation of the Minister of Manpower 8/2021.

[16] Article 18 section (1) Regulation of the Minister of Manpower 8/2021.

[17] Article 19 section (1) and (2) Regulation of the Minister of Manpower 8/2021.

[18] Article 21 section (1) Regulation of the Minister of Manpower 8/2021.

[19] Article 29 section (1) letter a Regulation of the Minister of Law and Human Rights Number 29 of 2021 on Visa and Stay Permit (“Regulation of the Minister of Law and Human Rights 29/2021”).

[20] Article 30 section (1) letter i Regulation of the Minister of Law and Human Rights 29/2021.

[21] Article 32 section (1) Regulation of the Minister of Law and Human Rights 29/2021.