TheJakartaPost
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New foreign worker policy good news for investors
This particular provision gives fresh appeal for foreign workers, as their expertise may be utilized for two certain companies.
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Power up: A worker checks one of the overhead lines running along the railway at Jatinegara Train Station in East Jakarta. (JP/P.J. Leo)
T
he government has introduced a number of deregulatory measures and fiscal incentives to make Indonesia a better place to do business and maximize the country’s economic potential.
The latest measure was the new foreign worker regulation aimed at simplifying the procedures in the employment of foreign workers and removing overlapping employment regulations among state agencies.
Presidential Regulation No. 20/2018 on the employment of foreign workers, which President Joko “Jokowi” Widodo signed on March 26, was issued to ease the recruitment of the foreign workers the country needs most. The complicated procedures in the employment of foreign workers have hampered investment in certain business sectors. Investors often face difficulties in obtaining work permits for the foreign workers they really need.
Prior to the issuance of the new regulation, companies had to wait for at least four months to get an approval on their foreign manpower employment plan (RPTKA) and permit to employ a foreign worker (IMTA) . Such periods were considered to be very long, especially when businesses require urgent skills that cannot be found domestically.
