Are there any provisions or regulations for the working period of foreigners in Indonesia? How long can foreigners work in Indonesia?
By law, Foreign workers can only be employed in Indonesia in an employment relationship for a certain position and a certain time and have competence in accordance with the position to be occupied, through a Temporary Employment Agreement (Perjanjian Kerja untuk Waktu Tertentu/ “PKWT”)
So, how long is the working period for foreign workers? What is the legal basis?
Please take a look at the review below for a further explanation.
This article is the second updated version of the article with the same title, which was first published on Tuesday, 10 May 2016, and secondly updated by Tri Jata Ayu Pramesti, S.H. on Wednesday, 24 March 2021.
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.
Definition and Regulations of Foreign Workers
Foreign workers (Tenaga Kerja Asing/ "TKA") are foreign nationals holding a visa with the intention of working in the territory of Indonesia. Foreign workers can be employed in Indonesia only in employment relationships for certain positions and certain times and have competence in accordance with the position to be occupied.
Belajar Hukum Secara Online dari Pengajar Berkompeten Dengan Biaya TerjangkauMulai DariRp. 149.000
PKWT is a work agreement between workers/laborers and employers to establish an employment relationship for a certain period of time or for a certain job. In general, PWKT based on a time period can be made for a maximum of 5 years. If the PKWT period is about to expire and the work carried out has not been completed, it can be extended according to the agreement between the employer and the worker/laborer provided that the total period of PKWT and its extension is not more than 5 years.
Then, does the time period provision in PKWT also apply to foreign workers? To answer this, we need to understand the time period for the recruitment of foreign workers in GR 34/2021.
Time Period for the Recruitment of Foreign Workers
Basically, every employer who employs foreign workers is required to have a Foreign Workers Recruitment Plan (Rencana Penggunaan Tenaga Kerja Asing/"RPTKA"), which is a plan for the recruitment of foreign workers in certain positions and for a certain period of time authorized by the central government. However, this obligation does not apply to:
board of directors or commissioners with certain share ownership or shareholders in accordance with provisions of laws and regulations;
diplomatic and consulate staffs in foreign country representative offices; or
foreign workers that are required by employers in types of production activities that are stopped due to emergency condition, vocation, technology-based start-up, business trips, and research for a specified period.
To obtain an RPTKA, the TKA employer/foreign worker employer must submit an online application for RPTKA authorization to the minister or a designated official, which contains at least:
identity of the TKA Employer;
reasons for the recruitment of TKA;
position or ranking of TKA in the company’s organizational structure;
number of TKA;
period of time of TKA recruitment;
work location of TKA;
identity of TKA Understudy Workers; and
plan to absorb the Indonesian workforce every year
The period of recruitment of foreign workers is related to the validity period of the authorized RPTKA, which is as follows:
Validation of RPTKA for temporary works is granted for a maximum period of 6 months and cannot be extended.
Validation of RPTKA for work more than 6 months
Validation of RPTKA non-DKPTKA is granted directly for a maximum period of 2 years and may be extended.
Validation of RPTKA KEK shall be granted for a maximum period of 5 years and may be extended. Meanwhile, the validation of RPTKA KEK for 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.
Furthermore, what is meant by DKPTKA is Compensation Fund for the Recruitment of TKA (Dana Kompensasi Penggunaan TKA), which is the compensation that must be paid by TKA Employers for every TKA who are employed as non-tax state revenue or regional revenue. Moreover, Special Economic Zones, from this point onward referred to as SEZ or in Bahasa Indonesia known as Kawasan Ekonomi Khusus(“KEK”), are areas with certain boundaries within the jurisdiction of the Unitary State of the Republic of Indonesia which are established to carry out economic functions and obtain certain facilities.
In conclusion, based on the above provisions, in our opinion, the time period for the recruitment of foreign workers is determined in accordance with the validity period of the RPTKA based on GR 34/2021. Thus, the working period of foreign workers in Indonesia varies depending on the type of work performed, the location of the placement of foreign workers, and/or the position of the foreign worker concerned.
This is our answer, hopefully, you find it useful.