Hiring in Indonesia: How to Prepare a Foreign Worker Utilisation Plan

Hiring foreign workers in Indonesia requires careful planning and strict adherence to local regulations. One of the most crucial steps in this process is preparing a Foreign Worker Utilization Plan (RPTKA), a document that justifies the employment of foreign workers and ensures compliance with Indonesian labor laws. 

In this article, we’ll guide you through the essentials of creating a successful RPTKA, helping you navigate the complexities of hiring foreign talent while meeting legal requirements and contributing to the development of Indonesia’s workforce.

What is a foreign worker utilization plan (RPTKA)?

RPTKA stands for Rencana Penggunaan Tenaga Kerja Asing, which is the Indonesian term for foreign worker utilization plan. This is a crucial requirement for companies in Indonesia that intend to employ foreign workers.

This document is a detailed plan that outlines the company's rationale for hiring foreign workers, including information about the specific positions to be filled, the qualifications required, and the training or knowledge transfer programs to be implemented for local employees. 

Here are several reasons why this document is necessary:

Compliance with Indonesian labor laws: RPTKA is issued by the government to ensure that the employment of foreign workers is legal. Employers who choose not to adhere to these laws can face fines and other penalties which can hinder their business operations. 

Skill gap addressing: In sectors facing shortages of skilled workers, hiring from abroad can help address performance gaps in the workforce. It ensures that critical roles are filled, benefiting both businesses and the economy.

Economic benefits: The foreign worker utilization plan enables Indonesia to access foreign talent, allowing the country to leverage their diverse skills and expertise. 

Protection of workers rights: In scenarios like this, employers tend to take advantage of foreign workers. With RPTKA, workers are entitled to legal protection and can avoid cases such as exploitation. They can also access social benefits, healthcare and other essential services giving them the support they need during their stay. 

By requiring companies to submit an RPTKA, the Indonesian government can monitor and control the use of foreign labor, ensuring it aligns with national labor policies and contributes positively to the country's economy and workforce development.

What are the types of Indonesia work visas for foreigners?

Work visas are crucial legal documents that allow foreign nationals to work and live in a host country. 

In Indonesia, companies must first obtain approval for the RPTKA before they can secure work visas for their foreign employees. Without this approval, the process of acquiring work visas is significantly impeded.

The following are the different types of work visas available for foreign nationals in Indonesia:

Temporary

Temporary work visa also referred to as VISTAS is an Indonesia work permit that allows foreign workers to legally reside and work in Indonesia. According to the Ministry of Manpower, this visa must be used within 90 days from the date of issuance. The stay permit starts from the date the traveler enters Indonesia. VISTAS is common for professionals, consultants, or workers on temporary assignments.

Over 6 months 

For employment in Indonesia that requires foreign workers to stay for more than six months, a long-term visa is necessary. This Indonesia work visa is referred to as a permanent stay permit (ITAP). For employees who have held temporary work visas for a specified number of years, typically in senior roles or with substantial connections to Indonesia, they may be eligible for a permanent stay permit, granted after maintaining an ITAS for the required duration.

Non-DKPTKA

Non-DKPTKA visas are issued for positions exempt from DKPTKA requirements. Employment under this category does not require contributions to the Foreign Worker Utilization Compensation Fund. These visas typically apply to certain roles that qualify for specific exemptions. For example, foreign workers engaged in short-term assignments, diplomatic or governmental roles, and certain educational or research positions might fall under this category, allowing them to bypass the standard DKPTKA regulations.

Special Economic Zone (SEZ)

A Special Economic Zone (SEZ) work permit is a type of visa issued to foreign workers employed within a designated SEZ in Indonesia. These zones operate under distinct economic regulations and policies that set them apart from the rest of the country. The SEZ Indonesia visa is valid for five years, with the possibility of extension. Alternatively, the SEZ RPTKA for directors or commissioners can be granted for a period determined by the employer's needs.

What are the key components of an RPTKA?

Here we've compiled the necessary documents required for an effective RPTKA application. 

1. Company information

To hire foreign workers in Indonesia, you must provide details about your company such as company name, address, industry, tax identification number, and business license. Collecting accurate company details enable authorities to monitor and manage the employment of foreign workers, ensuring that the company adheres to labor laws, regulations and HR compliance. This also facilitates communication and coordination between the company and relevant government agencies throughout the employment period. 

2. Justification for foreign worker employment

Hiring foreign workers in Indonesia also requires employers to present strong and clear reasons why the worker is needed. Employers should highlight the various ways these workers will contribute to the company. It could be the specific skills, expertise or qualifications that the foreign worker brings that cannot be accessed locally. 

3. Foreign worker details 

Proper Rencana Penggunaan Tenaga Kerja Asing application requires companies to submit details about the proposed foreign worker. This information includes their qualifications, experience and the position to be filled. Job title, responsibilities and duration of employment should also be included in the document.

Read next: Employee Data Management: How HRIS Can Help Achieve Accuracy and Security

4. Training and development plan 

A training and development plan ensures that the foreign worker's specialized skills and knowledge are effectively transferred to local employees, fostering a more skilled workforce. The plan should outline specific training methods, timelines, and goals for transferring knowledge to local employees. It should also include details on the types of training such as workshops, mentoring, on-the-job training and how the effectiveness of the training will be evaluated. Additionally, the plan should address how the foreign worker will be integrated into the company culture, including any orientation or cultural sensitivity programs that will help them adapt to their new work environment.

5. Compliance and commitment

Including a compliance and commitment document for the RPTKA serves as a form of assurance that the company complies with all relevant labor laws and regulations. This also includes the mandatory use of Indonesian workers for certain roles and functions.

After compiling the documents, you will submit the RPTKA application to the relevant government authorities, usually the Ministry of Manpower. The authorities then review the application to ensure compliance with regulations and may conduct interviews or inspections.

If approved, the company receives a RPTKA approval letter, which is necessary for obtaining a work permit for the foreign worker.

Tips to Ensure a Successful Foreign Worker Utilization Plan 

The RPTKA application process can often be tedious and time-consuming. To streamline the process and improve your chances of approval, you must adhere to the following tips. 

Clear and convincing reason 

Clearly justify the need for foreign workers by demonstrating a lack of suitable local candidates and how the foreign workers’ skills will benefit your company. For example, you can provide evidence of efforts to recruit local candidates, such as job postings or interviews, that didn't yield suitable applicants. Additionally, outline specific projects or tasks that require specialized skills or expertise that foreign workers bring, and explain how these will contribute to the growth and success of your company.

Provide detailed and accurate information

Companies must ensure all required documents are complete and accurate to avoid delays. Creating a checklist is essential in this process. Start by compiling a comprehensive list of required documents, such as company registration, tax ID, and foreign worker qualifications, to ensure everything is covered. Review all documents carefully before submission and have a colleague or legal expert verify the details to catch any potential errors.

Demonstrate strong commitment for compliance

Regularly review and comply with all Indonesian labor laws and regulations, including quotas for foreign workers and mandatory roles for local employees. Subscribe to updates from the Ministry of Manpower or consult with a legal advisor to ensure you are informed about any new developments or changes in labor laws or regulations.

Take a proactive approach

Another way to streamline the application process and reduce the risk of delays is by ensuring that all required documents are prepared in advance, accurately completed, and thoroughly reviewed. It's also important to address potential issues promptly and maintain regular communication with relevant authorities to stay updated on any changes in requirements. For instance, if certain documents might be difficult to obtain or if there are concerns about compliance, address these issues proactively rather than waiting for them to arise unexpectedly.

Successfully Navigate Through the RPTKA Process

By following the steps mentioned above, you will be able to develop a comprehensive and effective foreign worker utilization plan. A well-structured plan not only ensures compliance with immigration regulations, but also optimizes your workforce, increases efficiency, and contributes to your company’s success. 

Omni allows your organization to securely and centrally manage employee information such as proof of qualifications and well-maintained records required to apply for work permit Indonesia. Our employee-portal makes it easy for employee’s to upload and update their information, centralizing critical information such as employee identification numbers, training program dates, and renewal reminders, helping ensure your foreign worker utilization plan is accurate and meets the requirements of the Indonesian government.

Book your product tour today and learn how Omni can help you streamline your work permit Indonesia application and expertly navigate RPTKA process to ensure compliance for your organization.