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IMPACT – MEDIUM
What is the change? In the transition to an online system, immigration authorities will no longer issue physical cards representing stay permits (KITAS).
What does the change mean? Applicants will instead receive their stay permit by email (e-ITAS) and will need to print them out and carry them at all times.
Background: This change is related to the transition to an online application system for stay permits.
BAL Analysis: Some Immigration Offices are continuing to issue the paper cards until their stock is used up, but it is unclear how long this will last, and foreign assignees should prepare for the electronic version to replace paper cards. Additionally, Immigration Offices are allowing companies to send a third-party agent to pay the government filing fees, rather than requiring an authorized company representative; however, it is unclear whether the Director General of Immigration will allow this to continue. Employers and applicants should be aware that Indonesia is undergoing many changes to its immigration policies and practices, and circumstances are changing daily. BAL is closely monitoring these changes and will report all relevant developments as the situation stabilizes.
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.
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What is the change? The South Jakarta Immigration Office is allowing three-month provisional temporary resident permits (KITAS) for certain foreign nationals awaiting work permit approvals.
What does the change mean? The provisional KITAS is available to foreign workers whose current KITAS is about to expire while awaiting a pending work permit and to foreign workers who entered Indonesia on a visitor visa and are awaiting the final stages of a conversion to a work permit.
Background: The procedure for employers who are applying for a provisional three-month KITAS requires them to file an application along with standard supporting documents and a letter of guarantee stating that the work permit is in process. The employer must also submit a letter of recommendation from the Ministry of Manpower or local Manpower office.
BAL Analysis: The new option provides some leniency to foreign work-permit applicants. However, the provisional three-month KITAS only allows foreign nationals to extend their stay in Indonesia; it does not authorize them to begin work. While the option officially applies to South Jakarta, the policy is expected to be adopted by other jurisdictions.
IMPACT – HIGH
What is the change? The Directorate General of Immigration has announced that immigration authorities will no longer accept submissions by third parties, such as immigration agents working on behalf of companies.
What does the change mean? The order will require that companies file applications themselves with the immigration authorities, as they will not be able to use third-party assistance. Filings with the Ministry of Manpower or other agencies in the work permit process are not affected.
The order was issued Nov. 7 without notice. Employers and immigration agents are in discussions with the directorate about the negative impact of the rule. As such, implementation currently varies among the regional authorities, and most authorities are following local policies to continue to allow third-party assistance for the time being.
B·A·L Analysis: The business community and immigration agents continue to engage with the directorate for alternatives to an absolute ban on third-party representation. B·A·L will update clients on any changes or developments from these discussions.
IMPACT – LOW
What is the change? Indonesia has adopted new rules on how to make payments to the government’s Skills and Development Fund (DPKK) during the work permit application process. The payments are required of companies that employ foreign workers.
What does the change mean? Effective immediately, companies must pay the DPKK fee through a direct cash transfer at select banks using a specified e-billing code. The old DPKK account number (11773003) has been deactivated.
Implementation timeframe: Immediate and ongoing. The change has taken effect on an interim basis and will be made permanent Sept. 1.
Background: Companies that hire foreign nationals are required to pay the DPKK fee to the Ministry of Manpower and Transmigration to help train the domestic workforce. This government fee must now be paid by direct cash transfer at Bank Negara Indonesia (BNI), Mandiri Bank or Bank Rakyat Indonesia (BRI) using a billing code that will be provided during the work permit (IMTA) application process or pre-IMTA process.
BAL Analysis: Authorities have said that failure to make payments according to the new process may result in a reimbursement process that could take up to one year. Contact BAL with any questions about how to properly follow the new guidelines.
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About Berry Appleman & Leiden LLP Founded in 1980, Berry Appleman & Leiden (BAL) provides comprehensive global immigration services from seven offices across the U.S. and from offices in Geneva, London, Melbourne, Rio de Janeiro, São Paulo, Shanghai, Singapore and Sydney. BAL manages global visa matters and customized application approaches for work permits, business visas, and residence permits in more than 100 countries. With a single cost center for worldwide operations, BAL offers centralized management with regional and local support for the complete spectrum of global immigration matters.
Source: Berry Appleman & Leiden LLP
When traveling to Indonesia, your nationality and the types of activities you will conduct during your trip will determine whether you may travel lawfully as a business visitor or if you require work authorization. Please seek advice from your immigration counsel if you are uncertain about the specific types of activities that constitute business or work.
As a business visitor to Indonesia, you may engage in the activities below. While this list is not exhaustive and other activities could qualify as business, you may:
Citizens of most countries are eligible to enter Indonesia on visa-waivered status and conduct limited business activities. However, under Indonesian law, permissible business activities are extremely restricted, and it is highly recommended that all business travelers obtain a Visit Visa (Business) from an Indonesian Consulate or Embassy prior to travel.
Similarly, while many nationalities may be eligible for a Visa on Arrival or an Electronic Visa on Arrival, it is recommended that all business visitors obtain a consular Visit Visa prior to traveling to Indonesia.
The activities below, whether paid or unpaid, generally constitute work under Indonesian law. This list is not exhaustive, and many other professional activities are considered work in Indonesia, even if conducted for a short duration.
In limited circumstances, foreign nationals may engage in select professional activities for a short duration without obtaining work authorization, although strict preconditions must be met. Please contact your immigration provider for an individual assessment prior to travel to determine your eligibility for a work authorization exemption.
The requirements for work authorization depend on your qualifications, the nature of your work and the duration of your intended stay in Indonesia. Foreign nationals must obtain work authorization through the Manpower Plan Approval (RPTKA), Notification and Limited Stay Permit (ITAS) application process under one of the following categories:
There are no work authorization exemptions based on nationalities in Indonesia; however, certain exemptions may apply to shareholders of a local Indonesian company or for employees in specific industries. Please seek further details from your immigration provider regarding requirements and restrictions associated with these exemptions.
Inevitably, the legal and strategic considerations impacting visa selection, as well as visa waiver and work authorization eligibility, entail the careful consideration of many factors. We recommend that you consult with your immigration counsel before taking any course of action.
What is the change? The Ministry of Manpower has announced its holiday schedule and office closures for Hari Raya Idul Fitri.
What does the change mean? Sponsoring companies should plan for the holiday schedule to avoid delays in processing.
Background: In addition to the holiday dates, the ministry has also confirmed the deadlines for specific actions.
BAL Analysis: Employers and employees should be aware of this schedule to manage timelines and expected dates for employees to commence work.
What is the change? Indonesian authorities have become increasingly active in checking foreign nationals’ travel and identification documents in recent weeks, a trend that is consistent with past increases in checks during Ramadan and the Christmas-New Year’s holiday season.
What does the change mean? Random checks have increased. Foreign nationals should be prepared to produce passports, visas and work and stay permits (KITAS/KITAP) if an immigration official or other government authority makes a request to see such documentation.
Background: Ramadan began this month and runs roughly until July 5, depending on the length of the lunar month. The increase in checks is consistent with past enhanced security measures during Ramadan and the Christmas-New Year’s holiday season.
BAL Analysis: Foreign nationals should take care, especially now, to make sure they have the proper travel and identification documents with them at all times.
This alert has been provided by the BAL Global Practice group and our network partner in Indonesia. For additional information, please contact your BAL attorney.
What is the change? Under a presidential decree, Indonesia has exempted nationals from 169 countries from the requirement of obtaining visitor visas.
What does the change mean? Business travelers should be aware that while the visa exemption does allow some business activities, permitted activities are explicitly limited to the following: attending meetings held by the head office or representative office or attending seminars. Any other business activities require applying and obtaining a business visa before travel.
Background: Previously, visa-exempt nationals could travel to Indonesia without a visa for tourism or leisure only (except ASEAN nationals who could attend business meetings). The new decree expands the number of visa-exempt countries and allows those entering Indonesia without a visa to visit for tourism, leisure, family and social visits, government visits and flight transfers, as well as to attend seminars or give lectures or to attend business meetings held by the head office or a representative office.
The list of the 169 countries may be viewed here.
BAL Analysis: Although certain business activities can now be carried out visa-free in Indonesia, if the duration of stay exceeds 30 days, an appropriate business visa or work permit must be obtained prior to travel. BAL continues to recommend that business travelers apply for a business visa when conducting any type of business activities in Indonesia, to reduce the risk of being denied entry or being detained by Indonesian authorities in-country for not holding the appropriate visa.
What is the change? Indonesian immigration authorities now require applications for KITAS (stay permits) in certain locations to be lodged online.
What does the change mean? In some jurisdictions, KITAS applications must be submitted online with a copy of the foreign employee’s passport, visa sticker and arrival stamp.
Background: Previously, the KITAS and Multiple Exit Re-Entry Permit (MERP) applications were filed manually at the Immigration Office where the foreigner was to be based. However, authorities have recently started requiring KITAS and MERP applications to be lodged online once the individual has arrived in the country. This online process is only currently applicable in the JABODETABEK Area: DKI Jakarta, Bogor (West Java), Depok (West Java), Tangerang (West Java), and Bekasi (West Java). Once the application has been lodged, the system will issue an electronic confirmation notice that the foreign employee must retain to complete the stay permit authorization process in person.
BAL Analysis: This new step in the process aims to improve authorities’ monitoring of foreigners who are working in the country. Although this change has only been implemented in some areas, it may be adopted in other locations. Authorities could also revert to the old process without notice.
What is the change? Indonesian immigration and labor authorities continue to offer conflicting advice on the use of visas on arrival for business visits.
What does the change mean? While the Indonesian immigration authorities at various consular posts will advise using the visa on arrival for a business trip, authorities at the border may deny entry and labor authorities may levy fines for conducting business with an inappropriate visa.
Background: Since Indonesian authorities have stepped up enforcement activities over the past few years, BAL has noticed an increase in the number of business travelers experiencing problems with Indonesian immigration or labor authorities when using visas on arrival.
Some Indonesian embassies advise on their web pages that the visa on arrival may be used for business visits. However, immigration authorities at the border may deny entry when the purpose of the visit is business-related, and authorities in the Immigration Department have stated that visas on arrival are intended for tourist use only. Also, labor authorities in Indonesia continue to crack down on foreign nationals working without authorization and will fine and sometimes detain foreign business visitors for conducting business activities without holding a business visa.
An additional consideration is that because the visa on arrival is not directly sponsored by an Indonesian company, employers and their business partners in Indonesia will not have the standing with authorities to act on behalf of the foreign national. This can hamper efforts to help in an emergency, especially when the foreign national has been detained.
BAL Analysis: The conflicting information offered by the immigration and labor authorities has caused confusion regarding whether the visa on arrival can be used for business visits. In the current heightened enforcement environment, BAL recommends always using an appropriate business visa when traveling to Indonesia for business.