Benefits of Work Permits in Indonesia
Every work permit available in Indonesia has its own reasons for importance and its own benefits. One of the main advantages of the of one–month / emergency work permit and limited stay permit is the relatively short processing time with regard to the relevant work permit (IMTA) and stay permit (ITAS). Foreigners who own this work permit are not required to obtain their limited stay visa (VTT) at an embassy abroad. They may instead opt to collect their VTT upon arrival at the airport. They are also not required to obtain either of two documents which would usually be required: the Certificate of Temporary Residence (SKTTS) and the Existence Report (L/K).
The short–term work permit and limited stay permit also has several important benefits. Companies that employ foreign workers, also known as sponsor companies, and are connected to this permit are not required to appoint an Indonesian counterpart worker. Moreover, the Ministry of Manpower does not require a minimum ratio of foreigners versus Indonesian workers for this type of work permit. Especially for projects which require large numbers of foreign workers, the short-term work and stay permit is the preferred option, as the sponsor company often cannot hire the required minimum number of Indonesian workers in the sponsor company. The short-term work permit is available for positions below managerial level. It is applicable to foreign workers who have not fulfilled the requirement of fulfillment of at least five years of job experience in line with the job in which the foreign worker is working or who have educational qualifications lower than that of a bachelor’s degree.
The main advantage of a long-term work and limited stay permit is that it can be extended on up to five occasions. The foreigner is not required to leave the country during the extension process. During each extension, the foreigner is required to surrender the passport for approximately one week in order to process the ITAS stamp in the passport at the local immigration office as well as to have a biometric session there.
Authorities Which Oversee Work Permits in Indonesia
The Ministry of Manpower is the government body responsible for issuing and supervising the foreign manpower utilization plan and foreign manpower work permit in Indonesia. The foreign manpower utilization plan is a corporate license that specifies the job titles of foreign workers, the number of foreign workers in a company, and the duration of their assignment in Indonesia. This plan is used as the basis to apply for a foreign worker’s work permit. The work permit is a corporate license issued for each individual foreign worker. It specifies the foreign worker’s identity, job title, work location, sponsor company, and validity period of the permit.
- Directorate General of Immigration (DGI) and local immigration offices (active under the Ministry of Law and Human Rights).
The Directorate General of Immigration (DGI) and local immigration offices are responsible for issuing and supervising the visit visas, stay visas, and stay permits of foreigners in Indonesia. Visit visas are mainly used by business travelers for business meetings in Indonesia, while stay visas and stay permits must be used by foreigners who work in Indonesia and use a work permit.
Foreigners working in Indonesia and their dependants must secure a police reporting letter from the local police office. When workers travel for business meetings to a location not mentioned in their letter, they also need a travel permit from the regional or national police. Business travelers on a business visa in Indonesia also need a police reporting letter and travel permit when they travel to certain areas in Indonesia. These documents are used by the Indonesian police to monitor foreigners in Indonesia.
- Civil Registration Office
Foreigners working in Indonesia and their dependants must have a Certificate of Temporary Residence from the civil registration office. The civil registration office uses the certificate to monitor the foreigners in their area.
Companies employing foreign workers must report them to the Department of Labor located in the area where the company operates by using an existence report. The report is used by the local Department of Labor for monitoring purposes.
Companies which are active in the legal, health, finance and banking, sporting, electrical, and education industries need additional recommendations from related institutions before they can apply for a Foreign Manpower Utilization Plan and Foreign Manpower Work Permit from the Ministry of Manpower.
Enforcement of Work Permit Laws
The Ministry of Manpower and local Department of Labor enforce work permit laws by performing announced and unannounced audits at companies employing foreign workers. During these audits, all manpower documents are scrutinized and checked for compliance with manpower laws and regulations.
The Directorate General of Immigration and local immigration offices also enforce immigration law and regulations by performing announced and unannounced audits. During the immigration audits, immigration officers check whether all documentation is compliant and whether the activities of the foreigner are in line with the visa or permit as issued.
In rare cases, the Civil Registration Office performs audits at companies to confirm compliance with the obligation to obtain a Certificate of Temporary Residence for foreign workers.
If you are in need of a work visa or work permit which is valid in Indonesia, we at Paul Hype Page & Co will step in to assist. Once you have contacted us, we will ensure that the process of receiving the visa or permit is completed without any serious problems. We will also handle any government-related matters on your behalf.
In Indonesia, there are several laws and regulations that govern work permits. At the highest level, there are laws issued by the House of Representatives and approved and signed by the president. At lower levels, there are government regulations, presidential regulations and decrees, and ministry regulations and decrees. These laws must be followed by everyone who has a work permit in Indonesia.
Paul Hype Page & Co – OSS service provider and Asean Chartered Accountant.
Paul Hype Page & Co. have 3 physical offices in Singapore, Malaysia and Indonesia
Our Firm Goal is to assist Foreigner and Foreign Companies to set up business in Asean.
How we can help you:
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Step 1- Listen to your Business plan and Relocation needs.
Step 2- Analysis your Tax Planning
Step 3- Recommend the most suited type of Company Incorporation, Open Bank account and Work Visa
Step 4- Arrange for your Spouse and Children Visa
Step 5- Assist as your company to hire staffs and handle all HR matters
Step 6- Every financial year end, we assist you with your yearly OSS Finanical and Tax Complianc
Step 7- Assist you to expand business to Malaysia, Indonesia, Vietnam and Thailand.
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