Understanding Labor Laws Regarding the Use of Foreign Workers in Indonesia

Understanding Labor Laws Regarding the Use of Foreign Workers in Indonesia

 

Here is some brief explanation about laws that regulate the use of foreign workers in Indonesian companies.

 

The labor sector is one of the sectors that gets the most public attention because it involves the lives of many people. Therefore, it is not surprising that the government often makes new regulations and policies to adjust existing regulations to the needs of the community.

The use of foreign workers in Indonesia is the most highlighted issue among others. In connection with this, new regulations have been established through Presidential Regulation No. 20 of 2018 and Ministry of Manpower Regulation No. 20 of 2018 concerning the procedures for the use of foreign workers in Indonesian companies.

If your company plans to use foreign workers, the following regulatory changes must be noticed.

 

New Regulations that Remove Old Regulations

The enactment of The Ministry of Manpower Regulation No. 20 of 2018 automatically invalidate the old regulations established through The Ministry of Manpower Regulation No. 16-35 of 2015. This means that you have to adjust the company policy with the regulations that are used today.

 

Furthermore, there are some regulatory changes in new regulations that you must understand. Some of those are:

The Removal of “The Permit Documents for Employing Foreign Workers” (IMTA)

The new regulation removes the use of IMTA documents to employ foreign workers. In other words, the legalization of foreign workers is carried out through the document on the use of foreign workers (RPTKA) only.

By using this method, the processing time of the documents which usually takes up to one week can be reduced to 4 days. This regulation is expected to be able to cut the complicated bureaucracy to employ foreign workers.

The Removal of Ministry Recommendations

In the new regulation, employers do not need to ask for recommendations to relevant ministries or institutions before hiring foreign workers. Instead, the ministry only has the right to make suggestions about what positions can be occupied by foreign workers. The final regulation regarding this matter will further become the authority of The Ministry of Manpower.

For now, eight ministries have submitted recommendations for positions that can be occupied by foreign workers.

The Use of Integrated Online System

The submission of permits for the use of foreign workers in Indonesia has used the online mechanism in full and integrated among ministries/institutions such as The Ministry of Law and Human Rights and The Ministry of Finance.

Also, by using the online system, the validity period of the document on the use of foreign workers (RPTKA) becomes more flexible and can be regulated according to the employment agreement between the foreign workers and the employers (Previously, the RPTKA validity period is only one year).

Indonesian Language Training

Employers must facilitate foreign workers to get Indonesian language education and training while working in Indonesia so that the foreign workers who occupy technical, expert, and professional positions can transfer their knowledge to local assisting workers.

 

Closure

Finally, it is important to note that the above points are only a small part of all applicable regulations. To get a thorough understanding of this, you can take a close look at The Presidential Regulation Number 20 of 2018 on the use of foreign workers in Indonesia.

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