PRESIDENT REGULATION NO. 20 YEAR 2018 ON THE USE OF FOREIGN WORKER

President Regulation No. 72 Year 2014 on the Use of Foreign Worker has been revoked and replaced by President Regulation No. 20 Year 2018. This new regulation will be effective on 29 June 2018, 3 months after its enactment on 29 March 2018.

This new regulation still applies some restrictions and requirements under the previous regulation such as that the foreign worker is not permitted to hold the office managing personnel affairs and or other offices which are restricted as determined by the Minister of Manpower, that the employer must use Indonesian manpower in priority in every kind of available position, that there must be Indonesian co-worker accompanying the foreign worker to whom he must conduct transfer of knowledge and that the employer must avail the facility for education and training of Indonesian language for foreign workers.

This new regulation however, gives more flexible procedures for employing foreign worker in Indonesia. Those flexibilities are among other as follows:

1. RPTKA 

The Foreign Worker Recruitment  Plan (RPTKA) will be no longer required for employing foreign director or commissioner.

Employer who employs foreign worker must have an approved RPTKA. In general, the RPTKA should be obtained before the foreign worker starts working in Indonesia. In case of emergency and urgent work however, RPTKA can be applied within 2 days after the foreign worker has worked in Indonesia.   

2. No more IMTA

Based on Article 9 of the new regulation, RPTKA which has been approved by the Minister of Employment (MoE), also constitutes a permit to employ foreign workers. Thus, although it is not expressly stipulated in this new regulation, because the previous regulation related to such a permit to employ foreign worker (IMTA) has been revoked by this new regulation, the IMTA presumably would be no longer required.

3. Foreign worker can be hired by two employers

The change has been made to the implementing regulation under the previous regulation which forbid the employing of foreign worker who has been employed by another employer, namely that, Article 6 of this new regulation, now allows an employer but only, in certain sectors which will be specified under the regulation of MoE, to employ foreign worker who is being employed by another employer, for the same position. 

 

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