What is the change? Indonesia’s Ministry of Manpower has initiated the annual reporting process for 2018.

What does the change mean? Employers must submit their annual report of foreign workers through the new TKA Online system by Jan. 10.

  • Implementation time frame: Ongoing. The 2018 reports must be submitted by Jan. 10.
  • Business impact: If an employer fails to submit the annual report of foreign workers, the company will face potential administrative sanctions, including a temporary suspension of work permit processing.
  • Next steps: Companies should submit their annual report of foreign workers and include:
    • A list of foreign workers currently working at the company.
    • Information on the implementation of the education and training of Indonesian counterparts for positions held by foreign workers.
    • A list of foreign workers who have canceled their work permits at the company in 2018.

Analysis & Comments: Employers are encouraged to submit their annual report of foreign workers well before the Jan. 10 deadline.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

Medium Priority

What is the immigration news? The Ministry of Manpower will no longer issue Expatriate Placement Plans, or RPTKAs, with validity periods of more than two years.  

  • Implementation: Immediate.
  • Who is impacted: Indonesian companies hiring and employing foreign nationals.
  • Impact on business: Despite new limitations, RPTKAs may be extended for two-years following the initial validity period and then again for one year after the initial extension. Employers should account for additional processing time and track expiry dates to ensure timely renewals.

Background: Indonesian work-permit regulations, announced in July, establish that the validity period of the RPTKAs is based on the length of the employment contract. Since provisions of Indonesian labor law establish that temporary employment agreements are to be valid for a maximum of two years, the RPTKA is limited by law to a two-year validity period.

Despite the regulations, online applicants were still able to select three-, four- and five-year RPTKA validity options on the MOM website until recently. By removing RPTKA validity options that extend beyond two-years, MOM ensures that its online system complies with Indonesian labor law and that employees have lawful work authorization moving forward.

BAL Analysis:  The removal of the option to apply for RPTKAs with validity periods of more than two years clears a discrepancy between the ministry’s application process and Indonesian labor laws and ensures that Indonesian companies are in compliance with labor regulations. For more information on RPTKA applications, please contact your immigration representative.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Applicants in Indonesia applying for visas to Saudi Arabia are now required to book an appointment with the VFS Tasheel visa application center to submit their application in person and provide biometrics.

What does the change mean? Applicants should expect delays in the new process as there is currently only one VFS center in Jakarta that is able to complete biometrics.

  • Implementation time frame: Immediate.
  • Visas/permits affected: All visas, including commercial visit visas.
  • Business impact: Visa appointments and overall processing may be delayed during the transition.

Background: VFS Tasheel last month announced the opening of 10 application centers to service visa applicants, including biometrics enrollment. Under the new procedures, applicants must book an appointment at a VFS center online or in person and appear at the appointment with their supporting documents. Biometrics (fingerprints, digital photo and biographical information) will be taken and the application will be submitted for processing. Applicants may track the status of their application on the VFS website and sign up for other services such as automatic updates via SMS and courier delivery. Biometrics are valid for six months.

Analysis & Comments: Saudi Arabia is introducing biometrics at all VFS Tasheel locations, including Singapore, Egypt, Netherlands, and the United Arab Emirates, among other countries. Applicants in Indonesia should plan for possible delays as the new procedure is rolled out and until more VFS centers are capable of taking biometrics.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the change? The Ministry of Manpower and the Directorate General of Immigration have integrated their systems for foreign workers’ work permit applications.

What does the change mean? The updated system integrates the entire process for sponsoring companies, beginning with the filing of the Foreign Manpower Utilization Plan (RPTKA), to the notification (work permit), work visa, and stay permit (e-ITAS) for foreign employees.

  • Implementation time frame: Immediate. The integration was implemented Nov. 1.
  • Visas/permits affected: All visas and permits related to foreign workers, including RPTKA, notifications (work permits), work visas and stay permits.
  • Business impact: The integration should streamline the procedures for companies applying for new work permits. 
  • Next steps: Companies should try accessing their existing accounts in the ministry’s system or TKA online with the new system and confirm that their account contains all company documents and all currently approved positions from their RPTKA.

Background: The systems previously administered by Ministry of Manpower (TKA Online) and Directorate General of Immigration (Visa Online) have now been integrated, and sponsoring companies will need to be proactive in ensuring their accounts are active and updated, and that documents are timely uploaded to avoid delays in work permit applications.

Analysis & Comments: Companies are advised to ensure that their accounts have been properly restored by accessing their account at TKA Online using the same user ID and password. On the first login, the system may request updated information, including the contact information of the guarantor, the company’s Tax ID card number and the numbers of local and foreign employees in the company. When updating their accounts, companies should also check that company documents, such as articles of association, domicile letters, business licenses and mandatory reports, are logged in their account, as well as all jobs that are in the company’s active RPTKA that have previously been approved by the Ministry of Manpower.

During the implementation of the integrated system, companies should allow additional time to account for possible glitches or system maintenance, which may delay the process. Additionally, as this is now a streamlined process, companies should ensure that all information and supporting documents for applying for work permits, work visas, and stay permits are available upfront because the application may only be submitted into the system once. If the authorities notice that there are missing documents, a company will be requested to complete and submit them to the system within 24 hours.  

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the change?  Indonesia’s immigration authorities have issued a circular changing the requirements for foreign nationals applying for limited stay permits (ITAS) or permanent stay permits (ITAP).

What does the change mean? A domicile letter or temporary residence card (SKTT) are no longer required, but applicants must instead submit a statement and guarantee letter from a guarantor, such as their employer.

  • Implementation time frame: Immediate.
  • Visas/permits affected: Limited stay permits and permanent stay permits.
  • Business impact: The change creates a new administrative requirement for companies sponsoring foreign employees.

Analysis & Comments: Human resources staff should be prepared to submit a guarantee letter and statement indicating that the employer is responsible for the presence of the foreign employee in Indonesia and all activities during his or her stay.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.

IMPACT – MEDIUM

What is the change? Indonesia’s Ministry of Manpower has said that it will not introduce its new foreign worker online application system until November.

What does the change mean? Applicants will be able to submit applications online through the current TKA Online system until Oct. 31 and should anticipate the possibility of delays between now and November as authorities conduct IT work to get the new system ready.

  • Implementation time frame: November 2018. Implementation depends on interagency systems integration, and it is possible that the Directorate General of Immigration is able to integrate the ministry’s platform before Oct. 31.
  • Visas/permits affected: Any visa or permit application submitted through the ministry’s online application system, including applications for expatriate placement plans (RPTKA) and work permits (IMTA).
  • Who is affected: Employers submitting applications through the ministry’s online application system.
  • Impact on processing times: Processing could be prolonged as Indonesia prepares to switch to the new system.

Background: The Ministry of Manpower announced in July that it would switch to a new online system. Plans to introduce it were subsequently delayed, and the ministry said in a circular dated Aug. 1 that it will continue to accept applications on the current platform through Oct. 31.

BAL Analysis: Applicants may continue using the current TKA Online system through Oct. 31 as authorities will continue to work on the new system between now and November. Officials are also doing IT work on the Directorate General of Immigration’s online system, which has led to delays for limited stay visa applicants. “Similar delays may occur with the Ministry of Manpower in the upcoming period,” said Philo Dellano, managing partner of PNB Immigration Law Firm in Jakarta.

This alert has been provided by the BAL Global Practice group and PNB Immigration Law Firm in Indonesia. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Indonesia’s Directorate General of Immigration will be doing IT work between now and Aug. 16 that could cause disruptions in service and delays, the agency has announced.

What does the change mean? Applicants should anticipate the possibility of delays and service disruptions in the coming weeks. Biometrics appointments and applications for business visas and stay visas may be particularly affected.

  • Implementation time frame: Between now and Aug. 16.
  • Visas/permits affected: All DGI services, including biometrics appointments, business visas and stay visas.
  • Who is affected: Employers and foreign nationals using DGI’s online systems.
  • Impact on processing times: Applicants should expect delays, though it is difficult to determine how serious the service disruptions may be.

BAL Analysis: DGI released a letter on Friday saying that it would be conducting IT work, indicating that biometrics appointments, business visas and stay visas could be particularly impacted. Biometrics appointments may be postponed or canceled, while applications for business and stay visas may be delayed. Those with urgent immigration needs that may be impacted by the IT work should contact BAL.

This alert has been provided by the BAL Global Practice group and PNB Immigration Law Firm in Indonesia. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? The government has released details of the new work permit regulations, including a mandatory language requirement.

What does the change mean? The regulations, released in April, contain several important processing changes to work permits as detailed below. The language provision says that employers must provide Indonesian language training to foreign employees on long-term work permits in non-director positions, and authorities will be making site visits to verify the language ability of these foreign workers.

  • Implementation time frame: An implementation date has not been confirmed, although the regulations were supposed to take effect at the end of June.
  • Visas/permits affected: The regulations affect Expatriate Placement Plans (RPTKA), work permits (IMTA), and Telex Limited Stay Visas (VITAS), Limited Stay Permits (ITAS), and Multiple Exit Re-entry Permits (MERP). The language requirement only affects long-term work permits–short-term and urgent work permit applicants are exempt.
  • Who is affected: Indonesian companies hiring and employing foreign nationals.  
  • Impact on processing times: Work permits will be processed in two business days. Applicants should note that they may face delays due to newly required biometric procedures either at an Indonesian consulate or at the airport upon arrival.
  • Business impact: Although the regulations are meant to streamline some processes and provide greater flexibility, they also impose some new obligations and administrative burdens on companies.
  • Next steps: Employers should review the regulations, prepare for the changes and anticipate delays as labor, immigration and consular officers transition to them.  

Key changes:

  • After issuance of the Expatriate Placement Plan (RPTKA), applicants must apply for a notification (instead of a work permit) with the foreign worker’s details.
  • Applicants must also apply for a Telex Limited Stay Visa (VITAS), ITAS and MERP at the same time as the notification application. Biometrics will either be taken at a consulate if available or at the airport upon arrival in which case the VITAS must be collected at a consulate before travel and the ITAS and MERP will be collected at the airport. Foreign nationals should anticipate delays in implementation of biometrics procedures at consulates, and those who opt to provide biometrics at Indonesian airports may experience long wait times.
  • The Expatriate Placement Plan will be processed within two business days after the preapproval meeting with Manpower authorities, and the notification will be processed within two business days after payment of government billing codes.
  • The validity period of the Expatriate Placement Plan will be based on the duration of the employment contract. Although a maximum duration has not been set, it is likely to be two years under provisions of Indonesian labor law. Currently, RPTKA are valid for one year, renewable.
  • Foreign employees on long-term work permits must demonstrate Indonesian language skills. The employer is responsible for training their employees by working with a language institute or teacher. Officers will visit worksites to check the language abilities of foreign workers. Directors and commissioners are exempt from the language requirement.
  • Work permit applicants in certain industries, such as oil and gas, mining and electricity, will no longer be required to submit recommendation letters from the relevant government body, but the ministry for the relevant sector may request additional documents.
  • A local employment contract will now be mandatory for short-term work permits and for company directors and commissioners.
  • Directors and commissioners holding shares in their Indonesian company are exempt from having to obtain work permits.
  • Emergency RPTKA are limited to natural disasters or other catastrophic situations, and may be requested not more than two days after the foreign employee begins work. Employers should be cautioned that foreign workers may be considered illegally working if they do not possess an approved work permit.

BAL Analysis: The regulations contain significant changes intended to speed up government processing and simplify procedures, but the impact will be clearer once implemented. Authorities attempted to impose mandatory language requirement on foreign workers in 2015, but withdrew them in response to opposition from business groups. BAL will continue to report on the regulations as they are implemented.

This alert has been provided by the BAL Global Practice group and our network provider located in Indonesia. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Indonesia’s Ministry of Manpower has temporarily postponed plans to launch a new online application system.

What does the change mean? Applicants will be able to submit applications online through the previous system until further notice. Authorities initially planned to switch to the new system Monday, but it is not ready yet.

  • Implementation time frame: Ongoing.
  • Visas/permits affected: Any visa or permit application submitted through MOM’s online application system, including applications for expatriate placement plans (RPTKA) and work permits (IMTA).
  • Who is affected: Employers submitting applications through the ministry’s online application system.
  • Impact on processing times: Processing times are normal for now, but applicants should anticipate backlogs and delays when Indonesia does switch to the new system.

BAL Analysis: Until further notice, applicants can continue submitting applications as they did before last week’s announcement. BAL will provide more information about the new system as it becomes available.

This alert has been provided by the BAL Global Practice group and our network provider located in Indonesia. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Indonesia’s Ministry of Manpower announced this week that it will close its online application system and launch a new, integrated system with the Directorate General of Immigration.

What does the change mean? Applications on the old site were accepted through Tuesday. Neither the current system nor the new one will be available from Wednesday through Sunday. The new system is expected to go live on Monday.

  • Implementation time frame: Between now and July 9.
  • Visas/permits affected: Any visa or permit application submitted through the ministry’s online application system, including applications for expatriate placement plans (RPTKA) and work permits (IMTA).
  • Who is affected: Employers submitting applications through the ministry’s online application system.
  • Impact on processing times: The switch to a new online application system could cause processing delays.
  • Business impact: Businesses may need to make minor adjustments to their schedules if applications are delayed during the transition period.
  • Next steps: Additional information, including the web address for the new site, is expected to become available by early next week.

BAL Analysis: The announcement came as a surprise and could cause disruption for employers who intended to submit applications through the ministry’s online application system this week. Backlogs are likely, and delays should be expected when the new system goes live next week. BAL will provide additional details on the new system as they become available.  

This alert has been provided by the BAL Global Practice group and our network provider located in Indonesia. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.