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View all search resultsWork permits of hundreds of foreigners in Cilacap questioned
Local authorities are questioning existing procedures on work permit issuances for foreigners working in various industrial sectors in Cilacap, Central Java, saying that the presence of foreign workers in the regency does not contribute significantly to locally generated recurring revenues (PAD)
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ocal authorities are questioning existing procedures on work permit issuances for foreigners working in various industrial sectors in Cilacap, Central Java, saying that the presence of foreign workers in the regency does not contribute significantly to locally generated recurring revenues (PAD).
Cilacap Manpower Agency head Kosasih said the administration was striving to get a chance to self-manage the issuance and extension of work permits for foreign workers in Cilacap.
He added that only the Manpower Ministry in Jakarta had the authority to issue work permits for foreign workers, impeding local authorities from tapping huge PAD potential from the permit issuance sector.
'The potential to increase PAD is quite huge. With around 500 foreign workers in Cilacap, we should have added around Rp 3.5 billion [US$288,113.35] to PAD,' Kosasih told journalists on Monday.
He said Cilacap could tap such potential if it directly managed the work permit issuance of the foreign workers. 'We have never received the benefits because the companies they are working with have processed their work permit issuance and extensions directly at the Manpower Ministry,' said Kosasih.
He said the 500 foreign workers were working in around 20 companies, most of which were at two steam-powered electricity plants in the regency, namely PLTU Karangkandri and PLTU Bunton.
Cilacap plans to develop PLTU Bunton II, a giant electricity plant that is expected to produce 1 x 5,000 megawatts (MW) of electricity.
Kosasih said the Cilacap administration had coordinated with the Regional Legislative Council (DPRD) in which it had drafted a special regional regulation (Perda) on foreign workers. The Perda, he said, would regulate Foreign Workers' Employment Permit Levy (IMTA).
Kosasih said the Perda had been initiated in the beginning of 2014 and was expected to be deliberated by the new Cilacap Legislative Council in 2015.
He said the regency could potentially earn around $100 per month per foreign worker or around $1,200 per person per year if it directly handled the IMTA process.
Foreign workers in Cilacap are from various countries such as China, India, Korea, Malaysia, Thailand, and the UK.
Commenting on the plan, state-owned electricity company Pertamina's Operating Unit IV Cilacap general manager, Edy Prabowo, said it had often employed foreign workers on temporary work contracts.
'The most important thing is that in principle, the Perda should ease the work climate in the company. There should not be a redundant tax levy for foreign workers, otherwise they will seek job opportunities in other countries and this is unfortunate for us,' said Edy. (ask/ebf)
