INDONESIADecember 12, 2014

Following the installation of a new Minister of Manpower, changes have been made to the general application process at the Manpower Department, the document requirements for the application for the Recommendation by the Manpower Department (TA-01), as well as the validity of work permits for companies with a Principal Permit.

What’s Changed?

Queue Online Number

Applications through the Manpower Department are initially filed online and subsequently followed by a hardcopy application at the Department itself. As of December 1, 2014 all applications through the Manpower Department are now subject to an online queue process. This means that at time of online filing an online queue number is issued, which is connected to a specific filing date for the hard copy.

This new application process is currently causing significant delays to the processing of applications. For example, a TA-01 application filed on December 9th received a hardcopy filing date of January 7th, after which the TA-01 is supposed to be issued within 4 business days, as was the normal total processing time under the old process. This new application process applies to all applications filed through the Manpower Department, such as for the Expatriate Placement Plan (RPTK), the Recommendation by the Manpower Department (TA-01) and the Work Permit (IMTA), as well as Amendments to all of these.

Stricter Document Requirements for TA-01 Applications

Since last month the document requirements for the TA-01 applications have also become stricter. While previously normal copies of the CV and educational certificates where accepted by the authorities, these now require additional certification:

• CV – needs to be signed by the employee on each page, and include a meterai*, which is to be signed over and stamped with official company stamp by the Indonesian HR;

• Educational Certificate – needs to be translated into Bahasa Indonesian or English (if applicable) and a color scan of the certificate needs to be provided, including a meterai, which is to be signed over and stamped with official company stamp by the Indonesian HR;

• Reference Letter of Previous Employer (if applicable) – a color scan must be provided, again including a meterai, which is to be signed over and stamped with official company stamp by the Indonesian HR.

* “Meterai” are stamps issued by the post office 

Shorter Work Permit Validity for Companies with Principal Permit

Foreign Investment companies who only have an initial Principal Permit, as opposed to the Permanent License (IUT), are now only able to obtain work permits for their foreign employees for a maximum duration of less than 6 months, with the exception of work permits for Directors or Commissaries. These short term work permits are not renewable upon expiration.

ACTION ITEMS FOR EMPLOYERS

All companies filing for work permits in Indonesia should be aware of the current long delays caused by the new application process at the Manpower Department and amend their relocation schedules accordingly. Since this new process applies to various steps in the overall work authorization process, a total delay of several weeks or even months could potentially apply to new work authorization applications. It is too early to tell if these delays are of a permanent nature or will subside once the new process has been firmly established.

Foreign Investment companies with a Principal Permit should also take note of the shorter validity of work permits for their non-Directors/Commissaries and amend their staffing plans accordingly.

In the meanwhile our clients can rest assured that Pro-Link GLOBAL will continue to provide the necessary guidance to ensure that all supporting documents fulfill the most up to date requirements, including the new requirements for the employee’s personal supporting documentation.

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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. Readers are reminded that Immigration laws are fluid and can change a moment’s notice without any warning. Please reach out to your local Pro-Link GLOBAL specialist should you require any additional clarification. This alert was prepared by Pro-Link GLOBAL’s Knowledge Management team. Pro-Link GLOBAL worked with our PLG | KGNM Correspondent Offices in Indonesia to provide you this update.

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