The new Presidential Regulation No. 20/2018: “What does it rule? Does it simplify the licensing procedure of expatriates’ employment?”

By Ni Made Anggre Astari, SH.

Indonesian Member of ASIAN Society of International Law; &

Associate at Ramly & Associates Law Office

©May 2018

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 The Indonesian Government just issued a new Presidential Regulation No. 20 of 2018 concerning Utilization of Expatriates on March 26, 2018. This regulation is changing the previous Presidential Regulation No.72 of 2014 as has the same concerning as the new one (Presidential Regulation No.20/2018).

Considering to this regulation, we will find some articles and clauses that are differences to the prior regulation (“Presidential Regulation No.72/2014”). Answering the questions on the heading of the article; here we explain the new Presidential Regulation No.20/2018 give advantages for the Employer Expatriate to apply or get license of their employee expatriate.

the double employment”: The new Presidential Regulation No.20/2018 allows employers to employ expatriates who are in the employ of another employer for the same position.

the unlimited period of RPTKA”: The period of Expatriate Employment Plan “Rencana Penggunaan Tenaga Kerja Asing” (“RPTKA”) refers to the period of the expatriates’ employment time plan which is set out by the employers . The employers are allowed to set the limitation of the RPTKA by them self, while the previous Presidential Regulation No.72/2014; the period of the RPTKA was set for only 5 years and can only extend for 5 years later.

the temporary expatriates’ employment”: Temporary expatriates employees’ in maximum 6 months period can be included in the RPTKA as such work for auditing, production quality controller, inspection to the branch company in Indonesia, and the work in relation to the machine installation and maintenance.

the ratification RPTKA = IMTA”: On the Presidential Regulation No.20/2018 the “APPROVAL” will be the ratification of the RPTKA. The government will issue the notification of that ratification while on the Presidential Regulation No.72/2014 the approval was called “IMTA” (Ijin Mempekerjakan Tenaga Kerja Asing).

compensation”: the procedural for the compensation payment will be easier than the previous one. On the Presidential Regulation No.20/2018 the payment must be paid annually while on the previous implementation regulation ruled the payment was paid monthly.

vitas application”: the Presidential Regulation No.20/2018 provide the application for Visa Tinggal Terbatas “Vitas” can be filed simultaneously with an application for a Limited Stay Permit Ijin Tinggal Terbatas “Itas”. The RPTKA notification must be attached in the vitas application.

report”: the new regulation mention the employers must report the employment of expatriate annually, while the previous regulation rule the report for 6 months.

Implementing Regulation

Overall, the Government should make the Minister Regulation for implementing the new Presidential Regulation No.20/2018 properly.

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