- New Work Permit Processing Center Brings Stricter Adjudication Standards
- April 13, 2015
- Law Firm: Fragomen Del Rey Bernsen Loewy LLP - New York Office
- The Ministry of Manpower and Transmigration (MOMT) will be establishing a presence at the Indonesia Investment Coordinating Board’s (BKPM) One Stop Service (OSS) Center, following regulations issued on January 26, 2015. This change brings stricter application guidelines and additional documentation requirements for employers and foreign nationals.
The MOMT team at the BKPM is expected to provide an integrated process for companies filing certain Foreign Manpower Utilization Plan (RPTKA) applications, Work Permit (IMTA) applications, Recommendation for Work Permit (TA-01) applications and related renewal applications at the OSS.
New Procedural and Documentary Requirements
The following updated procedural and documentary requirements have been introduced for work permit-related applications filed at the OSS:
- Hard-copy applications can only be submitted if a color-scanned copy of the documents has been uploaded to the MOMT system. A printout of the system-generated receipt must be submitted;
- The Company Domicile Letter and Mandatory Manpower Report must be valid for at least three months;
- The foreign national’s proposed job title must be on the MOMT’s pre-approved list. If not, the application is likely to be rejected by the MOMT;
- A company representative (not a third party or agent) must attend the hearing interview for RPTKA applications;
- Additional certified documentation for the foreign national’s Indonesian co-worker may be required; and
- An Indonesian language proficiency certificate must be submitted.
Stricter Adjudication Standards
The regulations also provide specific standards for approval of applications during adjudication. The standards require the MOMT to:
- Consider the company’s line of business;
- Consider the national labor market conditions;
- Review any work contracts for job positions that are project-related;
- Consider the number of local Indonesian employees in the sponsoring company, the position of the foreign national’s Indonesian co-worker, and the overall employment opportunities available for Indonesian employees (if possible, the company should advertise such positions in the mass media);
- Consider whether the requested job can be performed by a local Indonesian employee and whether the number of foreign workers is in accordance with the workload, level of difficulty, technology and work location of the company;
- Review whether the company has employed an Indonesian employee who is physically disabled (which would be required for every 100 employees the company employs); and
- Review if the company implements a corporate social responsibility policy to help expand job opportunities.
Generally, the updated adjudication standards are stricter than the previous standards and focus on the protection of the local labor market. It is not yet clear, however, how the standards will be implemented.
The new requirements are expected to affect applications filed directly at the MOMT in the future.
What This Means for Employers and Foreign Nationals
Although foreign nationals and employers utilizing the MOMT services at the OSS can expect more streamlined government agency processes and faster processing times, the new regulations will require employers to submit more supporting documentation and comply with stricter standards for approval.
Employers should therefore account for additional document preparation time when filing work permit applications.