New jobs list could limit availability to recruit foreign workers in some positions
24 Sep 19
IMPACT – MEDIUM
What is the change? Indonesia’s Ministry of Manpower has released an updated list of jobs that will be open to foreign workers.
What does the change mean? The list covers jobs in 18 industries, including real estate, financial activity and insurance, health care, information and telecommunication, mining and extraction and professional, scientific and technical activity, among others. Applications for foreign workers in jobs that are not included on the list may be accepted, but companies should be prepared to detailed explanations of their specific workforce needs.
- Implementation time frame: Immediate and ongoing. The change was implemented Aug. 27.
- Visas/permits affected: Foreign Manpower Utilization Plans (RPTKA) and Work Permit Notifications.
- Who is affected: Employers and foreign nationals coming to Indonesia for work or intending to work past the expiration of their current work permit.
- Business impact: Companies are encouraged to review the list and come up with a strategic plan before applying for a new or renewed RPTKAs and Notifications. Companies are encouraged to consult further with Deloitte in this regard.
Additional information: Last year, the Ministry of Manpower issued a new regulation on procedures for hiring foreign workers. The regulation left it up to the Minister to determine what positions would be available to foreign workers. The ministry subsequently released the list of professions, focusing on jobs in 18 industries. Those industries are:
- Real Estate
- Water Treatment, Waste Water Treatment, Waste Management and Recycling, and Remediation Activity
- Transportation and Warehousing
- Art, Entertainment, and Recreation
- Provision of Accommodation and Meals
- Farming, Forestry, and Fishery
- Rental and Financial Lease with Option Right, Manpower, Travel Agency, and Other Business Support
- Financial Activity and Insurance
- Healthcare, Humanity, and Social Activity
- Information and Telecommunication
- Mining and Extraction
- Procurement of Electricity, Gas, Steam/Hot Water, and Cold Air
- Large-Scale and Retail Trade, Car and Motorcycle Reparation and Maintenance
- Other Service Activity
- Professional, Scientific, and Technical Activity
In cases where a job is not listed, companies can apply for a foreign worker for the position in accordance with their needs, but should be prepared to provide detailed information about the position and why the foreign worker is needed.
Permits granted before the issuance of the ministry’s new list will remain valid until their expiration date. For foreign workers planning to renew their work permit who are in positions are not on the new list, companies can (1) request approval to have the employee remain in his or her current job or can (2) change the employee’s job to comply with the new list.
The regulation is silent about the transition process for current foreign workers who need to change their job in this regard. There is a chance that foreign workers in these situations may need to deregister their work permit and seek a new work permit in a position that is stipulated in the list. Deloitte will keep you fully informed of any new developments or information on this regulation.
Analysis & Comments: Companies should consider the additional costs and possible business disruptions associated with attempting to hire foreign workers whose jobs are not on the list and may, in some cases, want to have current foreign workers deregister their work permits in order to have them work in jobs that are covered. Companies that attempt to hire foreign workers in positions that are not on the list should be prepared to provide a detailed explanation when meeting with the Ministry of Manpower.
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