INDONESIAAugust 31, 2015

In the past month, we have informed you of several new work permits and immigration regulations that have been published by the Indonesian authorities (see our Global Briefs from July 31 and August 19). As anticipated, the Indonesian authorities have issued some important clarifications on the implementation of these new regulations which shed a different light on some of the changes.

What’s Changed?

TA-01 Application Replaced by Application for Confirmation Letter Regarding Duration of Work Authorization

Last week, the Manpower Department officially announced via their website that the sections of the new Manpower Regulation #16, 2015 related to the removal of the TA-01 step from the work permit process will come into effect as of August 31, 2015. Thus, from today onwards, the TA-01 step (Recommendation of the Manpower Department) will no longer be required to apply for the Work Permit (IMTA).

When this change was first introduced, it appeared as though the TA-01 step would be removed entirely and the lengthy work and residence permit application process in Indonesia would have fewer steps; however, based on the most recent government updates, it appears as though this is not the case. Instead, the applicant will now be required to obtain a new confirmation letter regarding the duration of the work authorization (Pemberitahuan/ konfirmasi jangka waktu IMTA) which will take an estimated 4-5 working days to complete.

Thus, the pre-departure application steps for work permit applicants will now be as follows:

1. Expatriate Placement Plan (RPTKA) application – 3 working days;
2. Application for Confirmation Letter regarding duration of approved work authorization – 4-5 working days;
3. DPKK fee payment and Work Permit (IMTA) application – 1 day for DPKK payment and 3 working days for IMTA application;
4. Visa (VBS/Vitas) Telex Approval (based upon approval of the IMTA) – 8-15
working days (4-5 if using expedited processing);
5. Residence Visa Application (requires Telex Approval) – depending on consulate, but usually within 3-4 working days.

Note that the processing times for steps 1-3 as indicated above are based on the new regulations and are theoretical in nature only. Currently the RPTKA application and the IMTA application each take approximately 7-10 working days to be issued, and it remains to be seen if the Indonesian authorities will indeed be able to streamline their processes sufficiently for them to go down to only 3 working days for each.

Process for Non-Resident Directors and Commissioners

The details of the new work permit process and requirements for Directors and Commissioners living outside of Indonesia have now also been published. The Ministry of Manpower confirmed that the RPTKA will not be required for Directors and Commissioners living outside of Indonesia; rather, only the DPKK fee needs to be paid and the applicant must obtain an IMTA. Estimated processing time for this process is 7-10 working days. Please note that the immigration processes for Directors and Commissioners who live in Indonesia are different and will include the RPTKA application step.

No further residency documents will be needed for non-resident Directors or Commissioners. Instead, if a non-resident Director or Commissioner needs to visit Indonesia they will be able to enter on either a business visit visa index 211 (Single entry) or index 212 (multiple entry).

In addition to some basic personal documents and general corporate documentation, specific document requirements for the IMTA application for non-resident Directors and Commissioners are limited to a color scan of the deed of company establishment of the company mentioning the names of the Directors and Commissioners, the related approval from the Ministry of Justice, and a sponsor letter from the company.

ACTION ITEMS FOR EMPLOYERS

As always, your Pro-Link GLOBAL Immigration Specialist will work with you to navigate through the new work permit process. Although processing times for the RPTKA and the work permit officially have gone down in the new regulations, we do want to remind you that the implementation of a new process often results in initial delays while the officials at the authorities familiarize themselves with the new process. It may therefore be a while before these new official shorter processing times are actually met, if at all.

Conflicting information has been provided by the authorities regarding the date of implementation of the new regulations related to the new requirement for Directors and Commissioners living outside of Indonesia to obtain a work permit. We advise to stay on the side of caution and initiate the work permit process for those affected as soon as possible. Pro-Link GLOBAL will be happy to assist you with this application.

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Caveat Lector | Warning to Reader

This is provided as informational only and does not substitute for actual legal advice based on the specific circumstances of a matter. We would like to remind you that Immigration laws are fluid and can change a moment’s notice without any warning. Please reach out to your immigration specialist or your client relations manager at Pro-Link GLOBAL should you require any additional clarification. This alert was prepared by your Pro-Link GLOBAL Knowledge Management team. We worked with our PLG | KGNM Indonesia Office “PT. Rami Formality Services” to provide you this update.

Information contained in this Global Brief is prepared using information obtained from various media outlets, government publications and our KGNM network of immigration professionals. Written permission from the copyright owner and any other rights holders must be obtained for any reuse of any content posted or published by Pro-Link GLOBAL that extends beyond fair use or other statutory exemptions. Furthermore, responsibility for the determination of the copyright status and securing permission rests with those persons wishing to reuse the materials. Interested parties are welcome to contact the Knowledge Management Department (km@pro-linkglobal.com) with any additional requests for information or to request reproduction of this material.

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