The use of foreign workers has been regulated in Government Regulation Number 34/2021. The following are the rules regarding foreign workers which are written in GR 34/2021.
ABOUT FOREIGN WORKERS
- Can employers of foreign workers employ foreign workers who are working with an employer else?
- What are the obligations of the Employer of Foreign Workers when hiring Foreign Workers?
- What are the obligations of the Employer of Foreign Workers to Foreign Workers?
- Do all foreign workers receive Indonesian language education and training?
- Procedure for Approval of Request Manpower Utilization Plan (RPTKA)
- Procedures for Approval of Extension and Change Plan for Utilization of Foreign Workers
Compensation Fund for Use of Foreign Workers (DKPTKA)
- What is the Compensation Fund for the Use of Foreign Workers (DKPTKA)?
- Are all employers of foreign workers obliged to pay DKPTKA?
Guidance and supervision
Administrative Sanctions
- What sanctions are given by the Minister or appointed officer to the Employers of Foreign Workers if they violate the requirements and rules?
- How much fines must be paid by Employers of Foreign Workers who do not have RPTKA Ratification?
Can employers of foreign workers employ foreign workers who are working with an employer else?
Employers of foreign workers can employ foreign workers who are being employed by other foreign workers with the same position/position, as (1) Directors or commissioners or (2) in the vocational education and vocational training sector, the digital economy sector, and the oil and gas sector for contractors of cooperation contracts. With a note that TKA Employer must obtain permission/approval from the first Employer. This rule is made because the provisions in the next paragraph stipulate that the working period of the foreign worker concerned is no later than the expiration of the period as stated in The approval of Manpower Utilization Plan (RPTKA) first Employer
However, article 6 paragraph (2) of GR 34/2021 confirms that in the case that the Employer of TKA will employ TKA who is being employed by another Employer, each Employer must have an RPTKA Ratification
Based on Article 5 and Article 6 of GR 34/2021
What are the obligations of the Employer of Foreign Workers when hiring Foreign Workers?
TKA Employers are obliged to:
- Have an The Approval of Manpower Utilization Plan (RPTKA) that has been approved by the Minister or the designated official.
- Appointing Indonesian citizen workers as Assistant Workers of Foreign Workers who are employed for the transfer of technology and skills transfer from expatriate
- Carry out education and job training for Foreign Workers Assisting Workers in accordance with the qualifications of positions occupied by foreign workers
- Repatriate foreign workers to their countries of origin after the work agreement ends.
Based on Article 6 paragraph (1) and Article 7 paragraph (1) of GR 34/2021
What are the obligations of the Employer of Foreign Workers to Foreign Workers?
TKA Employers are obliged to:
- Facilitate Indonesian language education and training for foreign workers.
- Register foreign workers in the national social security program for foreign workers who work more than 6 (six) months or insurance programs with insurance companies for foreign workers who work less than 6 (six) months. The insurance program at the insurance company in question guarantees at least protection for this type of work accident risk.
Based on Article 7 paragraph (2) and Article 8 of GR 34/2021
Do all foreign workers receive Indonesian language education and training?
Indonesian language education and training facilities apply to all foreign workers, except those occupying positions such as:
- directors and commissioners;
- head of representative office;
- builder, administrator, and supervisor of the foundation; and
- Foreign workers employed for temporary work.
Furthermore, Article 30 mentions the education and training of Indonesian for Foreign Workers can be carried out by Employers of Foreign Workers or in collaboration with educational institutions or Indonesian language training institutions
Based on Article 7 paragraph (3) and Article 30 of GR 34/2021
Procedure for Approval of Request Manpower Utilization Plan (RPTKA)
For more details read this article
Procedures for Approval of Extension and Change Plan for Utilization of Foreign Workers
The article about Procedures for Approval of Extension and Change Plan for Utilization of Foreign Workers can read in here
Compensation Fund for Use of Foreign Workers (DKPTKA)
What is the Compensation Fund for the Use of Foreign Workers (DKPTKA)?
The Compensation Fund for the Use of Foreign Workers, hereinafter called as DKPTKA, is the compensation that must be paid by the Employer of Foreign Workers for each foreign worker employed as non-tax state revenue or regional income in the form of regional levies, provided that:
- As a non-tax state revenue for Ratification of new RPTKA, Ratification of extended RPTKA for foreign workers who work in locations of more than 1 (one) province, and Ratification of RPTKA in Special Economic Zones.
- Become provincial revenue for the Ratification of extended RPTKA for foreign workers who work in locations of more than 1 (one) district/city in 1 (one) province, and
- Become Regency/City regional income for the ratification of extended RPTKA for foreign workers who work in locations within 1 (one) Regency/City.
Based on Article 1 paragraph (7) and Article 24 of GR 34/2021
Are all employers of foreign workers obliged to pay DKPTKA?
Not. The obligation to pay DKPTKA does not apply (or in this Government Regulation referred to as RPTKA non-DKPTKA) for: Government agencies, representatives of foreign countries, international agencies, social institutions, religious institutions, and certain positions in educational institutions.
Based on Article 25 of GR 34/2021
Guidance and supervision
Which government agency provides guidance and supervision on the use of foreign workers?
Guidance and supervision on the norms for the use of foreign workers in accordance with the provisions of the legislation in the field of manpower is carried out by: Labor inspectors at the ministry that carries out government affairs in the manpower sector and/or the service in charge of provincial government affairs in the manpower sector.
In addition, supervision is also carried out by immigration officials who are in charge of immigration supervision and enforcement, in a coordinated manner in accordance with their respective scope of duties and authorities.
Based on Article 34 and Article 35 of GR 34/2021
Administrative Sanctions
What sanctions are given by the Minister or appointed officer to the Employers of Foreign Workers if they violate the requirements and rules?
The minister or appointed official will impose sanctions in the form of: fines (for employers of foreign workers who do not have RPTKA ratification), temporary suspension of the application process for RPTKA ratification, and/or revocation of RPTKA ratification.
Based on Article 36 of GR 34/2021
How much fines must be paid by Employers of Foreign Workers who do not have RPTKA Ratification?
The amount of the fine is imposed per position per person per month"
with the following conditions:
- 1 (one) month is subject to a fine of IDR 6,000,000.00 (six million rupiah);
- 2 (two) months are subject to a fine of IDR 12,000,000.00 (twelve million rupiah);
- 3 (three) months is subject to a fine of IDR 18,000,000.00 (eighteen million rupiah);
- 4 (four) months are subject to a fine of IDR 24,000,000.00 (twenty four million rupiah);
- 5 (five) months is subject to a fine of IDR 30,000,000.00 (thirty million rupiah); or
- 6 (six) months is subject to a fine of IDR 36,000,000.00 (thirty six million rupiah).
Based on Article 37 of GR 34/2021
More Article
- Procedure for Approval of Request Manpower Utilization Plan (RPTKA)
- Extension and Change Plan for Utilization of Foreign Workers
Source:
Indonesia. Government Regulation Number 34 2021