Tax Centre Universitas Indonesia     16 Oct 2015

Indonesia New Regulation of Foreign Manpower

This article is based on the revision of article 42 of law No. 13 year 2003 of Manpower and Ministry of Manpower Regulation No. 16. This regulation is in connection of Foreign Manpower with sponsor.

 

For Board of Directors (BOD), there is easiness for them that they could apply without the requirement for assistances (apprentice), the requirement of competence and the educational background. However, for Non-Board of Director (BOD), they need to have the certification of competency, must have Indonesian apprentice and possess a Tax ID Number/Nomor Pokok Wajib Pajak (NPWP). They also have to comply with the regulation of ratio 1:10 which means that for every one (1) foreign worker, there must be ten (10) Indonesian workers.

 

Work Permit for Expatriate/Ijin Mempekerjakan Tenaga Asing (IMTA) need to be obtained first in order to process the Residence Permit. The ratio of 1:10 is not required at the beginning of foreign workers arrivals in Indonesia in which will be obliged when they want to extend their IMTA in the year after.

 

Representative office are not compulsory to follow this regulation because based from the decree of the Minister of Trade No. 6 year 2010, the maximum number of employee in the representative office are 5 people.

 

The last Foreign Worker/Tenaga Asing (TA) 01 that used for the IMTA recommendation has been issued on 2 September 2015. Companies that employed foreign worker prior to 1st of July 2015 are not affected by this new regulation. This requirement is bears to only non BOD workers.

 

 

 

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