F

or the Expatriate Placement Plan (RTPKA) and Expatriate Work Permit (IMTA), normally a company starts the '€œcompany side'€ of the process before the new staff member arrives. You normally don'€™t just realize that you need one out of the blue. I agree that three months is too long, but it'€™s workable.

The work permit for non-residents, on the other hand, is really a shot in the foot. As you mention, you can'€™t get a non-resident work permit unless you are a permanent resident. This has severe consequences for internal audits and internal control for larger investors and is a deal breaker for sure.

The 1:10 ratio is for most companies not a problem. Smaller entrepreneurs can appoint (and should) themselves as directors.

We run an Internet travel promotion website about Bali. We don'€™t need 10 extra people. What would they do?

Actually you still pay taxes and contribute to the country. Everything you consume, you pay value added tax (VAT) on. If you have a car, house and other things, you pay taxes on these. If you receive funds from overseas, you will strengthen the rupiah. So like it or not, you are still working in Indonesia.

It'€™s still a tax. You only pay tax on your consumption. For the government, it really doesn'€™t matter where the tax comes from as long as it is being paid.

I believe that both Temporary Stay Permit (KITAS) and IMTA are acceptable. I am quite sure that President Joko '€œJokowi'€ Widodo did not require KITAS for such a condition, but the public should understand the requirements behind it.

In my opinion, the problem lies only with the complicated requirements and ever changing rules. For example, why does an employer that is entitled to and employs a foreigner i.e. with a valid working contract of three years, have to get three KITAS and six work permits for this time? This does not make sense! And, of course, especially at the Immigration Office, we have to submit a ton of papers, and the same papers every year again.

OB

Mr. President,

I went on Aug. 20 to a by-invitation business meeting with the business attaché for the EU. A VIP staff member of the Indonesian Embassy, tasked to create a conducive climate for investors, no?

How could it be conducive, if the business attaché did not speak French at all, but most of all his English was poor and he knew nothing about the issue? I do understand that you could not possibly know everything.

So to be conducive, he needed a small dictionary at hand to eventually translate words from '€œEnglish/French'€ to Indonesian. I kid you not, but we laughed with glee, and it was amicable at best. Love it.

AG