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IMPACT – MEDIUM
What is the change? New regulations have been issued that make several changes to work-permit procedures.
What does the change mean? The regulations generally provide more flexibility for companies and foreign workers. These include measures to provide options for urgent assignments, allow certain foreign workers to work for more than one employer, exempt certain foreign workers from the Foreign Worker Placement Plan requirements and extend the duration of some limited stay permits. A new requirement has been added that companies must issue a certificate to Indonesian workers as proof of the transfer of knowledge from a foreign worker to the Indonesian counterpart, although it is unclear whether it only applies for extensions of long-term work Permits.
Key changes:
BAL Analysis: The regulations provide for important changes that companies should prepare for in the coming months. BAL is following the new regulations and will update clients when implementation details are released by the Ministry of Manpower and immigration authorities.
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 – HIGH
What is the change? Authorities will no longer require letters of recommendation from the Ministry of Energy and Mineral Resources for companies applying for work permits in the oil and gas sector.
What does the change mean? Oil and gas companies may now complete the work permit process by submitting applications directly to Indonesia’s Ministry of Manpower. The change is expected to save significant time in the application process.
Background: The change was made following the issuance of a decree in February by the minister of Energy and Mineral Resources. While ministry letters of recommendation will no longer be required, those applying to work in Indonesia’s oil and gas sector for more than six months must still have (1) at least five years of relevant work experience, (2) a bachelor’s degree, (3) an Indonesian labor companion and (4) a contract or project agreement with an oil or gas company. The waiver applies not only to companies in the oil and gas sector, but also to subcontractors that contract with oil or gas companies even if the subcontractor’s work does not specifically relate to oil and gas activity.
The waiver only relates to recommendations issued by the Directorate General of the Ministry of Energy and Mineral Resources. Other industry-regulating institutions in Indonesia such as the SKK Migas (Special Taskforce for Upstream Oil and Gas Business Activities) may still need to issue separate letters of recommendation, as applicable to the sponsoring company.
BAL Analysis: The change is welcome news for companies working in Indonesia’s oil and gas sector. While employers should be prepared for the possibility of additional regulations that could create new administrative requirements, the waiver will, for now, save significant time in the work permit application process.
What is the change? The Ministry of Manpower will stop processing work permit applications during the Christmas and New Year’s holidays.
What does the change mean? The last day to submit new or renewal applications prior to the holidays is Dec. 22.
Key points:
BAL Analysis: Employers and applicants should expect delays in work permit processing from Dec. 22 through Jan. 3. Applicants should plan to file any time-sensitive applications as early as possible before the holiday break to avoid additional delays.
Copyright © 2017 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 – LOW
What is the change? Visa applicants at the Indonesian Embassy in India are experiencing slight delays because of a technical problem.
What does the change mean? Those submitting business, tourist or work visa applications at the Indonesian Embassy should expect delays and plan accordingly.
BAL Analysis: Little information is available at this point about the nature of the technical problem or how long it might take to resolve. For now, however, those in need of visa services should expect delays as described above at the Indonesian Embassy in India.
This alert has been provided by the BAL Global Practice group. For additional information, please contact your BAL attorney.
IMPACT – Medium
What is the change? The Ministry of Manpower (MOM) and the Directorate General of Immigration (DGOI) have announced the holiday schedule and office closures for the Hari Raya Idul Fitri celebration at the end of Ramadan.
What does the change mean? Employers should plan for the holiday schedule to avoid delays in processing.
Background: In addition to the holiday dates, MOM has also confirmed the following deadlines.
Meanwhile, DGOI (and local Immigration offices) announced a separate holiday closure schedule.
BAL Analysis: Employers should factor in the holiday schedule and filing deadlines when planning business schedules and start dates for employees.
What is the change? Indonesia’s Ministry of Manpower will close in late June for the Eid al-Fitr holiday.
What does the change mean? The last day to submit applications to the ministry before the holiday closure is June 21. Applications will continue to be processed through June 23 before the ministry will shut down for the holiday. The application submission counter and online systems will open July 4.
Background: Eid al-Fitr is a Muslim holiday celebrating the holy month of Ramadan. Muslims around the world are currently observing Ramadan, which leads to processing slowdowns in many countries. Indonesia’s Ministry of Manpower announced its Eid al-Fitr schedule this week, but the country’s Immigration Department has yet to announce its processing schedule. An announcement from the Immigration Department is expected soon.
BAL Analysis: Employers and employees should take note of the holiday schedule and anticipate delays. Those with time-sensitive applications are encouraged to submit them to the ministry as soon as possible.
What is the change? Companies are now required to register and obtain a username and password before applying for Telex preapprovals for work permits, single-entry business visas, multiple-entry business visas and social culture visas.
What does the change mean? Companies will be required to provide copies of various corporate documents in order to register with the new system.
Background: The Directorate General of Immigration is implementing a new system for the Telex visa process. The Telex visa is a preapproval that the DGI sends to an Indonesian consulate to enable issuance of an entry visa to a foreign applicant.
Under the new system, employers will need to register several documents in order to obtain their own username and password. Color copies of the following documents are required:
BAL Analysis: Indonesia is revamping many of its systems and changing various policies and practices. Employers and individuals should anticipate that the new registration procedures will lengthen processing times.
What is the change? Authorities have begun requiring sponsoring companies to complete a new email verification step during the work authorization process.
What does the change mean? The online application for RPTKA, Pre-IMTA Approval and IMTA will be delayed if the verification step is not completed.
Background: With the recent transition to an online application system, authorities are slowly streamlining the process for preparing and filing work authorization applications. Authorities at the Ministry of Manpower will now be required to verify a company’s email address before applications can be processed. Though there has not been an official announcement so far, the requirement was put into effect Jan. 18.
The email verification steps works as follows: Affected companies log in on this TKA Online system website. The verification setup should automatically pop up. Once it is completed, the ministry will send a verification link to the company email address that is on file. Companies that do not receive the verification email should contact BAL, which can request that another verification email be sent.
BAL Analysis: Employers should note that, with the change, the RPTKA will now be sent directly to the company’s verified email address. Work permits will continue to be issued physically and must be collected at the appropriate Ministry of Manpower office. BAL will continue to monitor this space for any new updates and will provide more information once available.
What is the change? Australia and Ecuador signed a reciprocal work and holiday visa arrangement this week.
What does the change mean? Under the agreement, a set number of individuals ages 18 to 30 from Australia and Ecuador will be able to apply for Work and Holiday visas. The visas will allow for Australian and Ecuadorian nationals to travel, work and study in each other’s countries for short-term stays.
Background: Once the arrangement is implemented, Ecuador will join Argentina, Bangladesh, Chile, China, Hungary, Indonesia, Israel, Luxembourg, Malaysia, Poland, Portugal, San Marino, Slovakia, Slovenia, Spain, Thailand, Turkey, the United States and Uruguay to have a reciprocal work and holiday visa arrangement in place with Australia. Australia’s current Work and Holiday program allows foreign nationals to visit for up to one year, during which time they may study for up to four months and work for up to six months for an employer.
BAL Analysis: The Work and Holiday Visas provide an opportunity for employers with global programs to employ Australian or Ecuadorian nationals.
This alert has been provided by BAL Australia. For additional information, please contact australia@bal.com.
MARN: 0850984
What is the change? Immigration authorities in Indonesia have implemented changes affecting employees and dependents applying for a preapproval of a Temporary Resident Visa (VITAS).
What does the change mean? Employees and their dependents can no longer apply for their preapprovals simultaneously.
Background: The Telex VITAS preapproval application is filed with the Directorate General of Immigration in Jakarta before the employee and family can travel to Indonesia. Once the preapproval is issued to the appropriate Indonesian consulate, the employee and family members then apply for their VITAS based on the preapproval.
Although there has not been an official policy change, authorities are now requiring that dependents wait until the employee’s Telex VITAS is approved and issued. Dependents must include the approved employee VITAS in their applications. Previously, the employee and family members could file their applications at the same time.
Additionally, authorities may now require that the employer and/or individual applicants present bank statements for the previous three months demonstrating a minimum balance of US$1,500 for each of the three months.
B·A·L Analysis: Employers and foreign employees should plan for longer overall processing timelines and the additional documentary requirements.
Copyright © 2016 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.