Based on Article 49 of Law No. 11 of 2020, provisions regarding the use of Foreign Workers (TKA) are further regulated in Government Regulation. In this regard, the Government Regulation referred to is Government Regulation No. 34 of 2021 regarding the Use of Foreign Workers (“GR 34/2021”), which came into effect on 1 April 2021. Furthermore, based on Article 6 of GR 34/2021, “Every TKA Employer who employs TKA must have an RPTKA validated by the Minister or an appointed official.”

The above-mentioned Foreign Workers Recruitment Plan (RPTKA) consists of several categories (Article 16-17 of GR 34/2021):

1. RPTKA for temporary work e.g., commercial film production, quality production management, and work related to machine installation). The validity period is up to six months and can not be extended.
2. RPTKA for work lasting more than six months. The validity period is up to two years and can be extended.
3. Non-DKPTKA / (non-Compensation Fund for the Recruitment of TKA) RPTKA. This category also has a validity period of up to two years and can be extended.
4. RPTKA for Special Economic Zones (KEK). The validity period is up to five years and can be extended, whics is only granted once for a TKA serving as a member of the board of directors or board of commissioners, and only applies during their term as a director or commissioner.

However, the approval for the above RPTKA does not apply to the following parties (Article 19 of GR 34/2021):

1. Members of the board of directors or board of commissioners who have certain share ownership or as shareholders;
2. Diplomatic and consular officials working at foreign representative offices; or
3. Foreign Workers who are instructed by Employers to carry out production activities that are temporarily suspended due to emergencies, to perform vocational work, to work in technology-based startup companies, or to conduct business and/or research trips.

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According to Decree of the Minister of Manpower, No. 228 of 2019 concerning Certain Positions That May Be Occupied by Foreign Workers, which came into effect on 27 August 2019 (“Ministerial Decree 228/2019”), in general, positions of the Board of Commissioners (BoC) and the Board of Directors (BoD) can be filled by Foreign Workers, provided that the positions do not involve personnel responsibilities nor violate applicable laws. In addition, if the position to be filled by the Foreign Worker is not listed in Ministerial Decree 228/2019, the employer must apply for a permit related to the recruitment of the Foreign Worker to the Minister or designated official.

Furthermore, the list of positions that can be filled by Foreign Workers is included in the Annex of Ministerial Decree 228/2019, as follows:

The aforementioned positions directly refer to the International Standard Classification of Occupations (ISCO), published by the International Labour Organization (ILO), and have been implemented by the Indonesian government in the form of the Indonesian Standard Classification of Occupations (KBJI). It should be noted that based on Part Four of Ministerial Decree 228/2019, every position filled by a Foreign Worker, including the requirements to occupy such positions, must be evaluated at least every two years or whenever deemed necessary.

ET Consultant is here to assist business owners in smoothly and efficiently managing the submission of RPTKA so that their business can run without obstacles or complications.

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ET Consultant is a Business Consultant and Legal Consultant Expert that provides support for local and multinational clients to start and manage their business operations in Indonesia. ET Consultant specializes in Business Incorporation, Licensing & Legal, Accounting & Taxes, Immigration, and Advisory Services.

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