Indonesia

Appointment system leads to significant delays

5 Jan 15

INDONESIA

IMPACT – MEDIUM

What is the change? A new appointment system in Indonesia is leading to significant delays in the processing of applications for the Expatriate Placement Plan (RPTK), individual foreign employee approval (TA-01) and individual work permit (IMTA). Additionally, TA-01 applications have new documentation requirements. There have also been changes to validity periods for some work permits.

What does the change mean? Employers sponsoring applicants for the above permits must plan ahead and should expect delays. They should also be aware of the new TA-01 documentation requirements and new work permit validity periods.

  • Implementation timeframe: The changes have already been implemented.
  • Visas/permits affected: The permits affected are the Expatriate Placement Plan (RPTK), individual foreign employee approval (TA-01) and individual work permit (IMTA).
  • Who is affected: Employers sponsoring applicants for the above permits.
  • Impact on processing times: Processing has been delayed by one to three weeks and, in some cases, up to four weeks.
  • Business impact: The changes impact businesses because it is taking longer for applicants to get the permits listed above. In order to avoid unnecessary delays or complications, businesses should also be aware of the new TA-01 documentation requirements and work permit validity periods.
  • Next steps: Applicants should plan ahead, leave more time to get the permits listed above and ensure they have all proper documentation.

Background: On Dec. 1, 2014, Indonesia switched to a new appointment system for RPTK, TA-01 and IMTA applications. Under the old system, hard-copy applications could be submitted one day after completing an online application. Now applicants must make an appointment online to set a date on which they submit their applications. Appointments are usually set at some point between one and three weeks after completion of the online application. In some cases, the wait can be as long as four weeks.

It is possible that wait times will decrease as officials continue implementation of the new system, but for now, employers and applicants should expect significant delays.

New documentation requirements for TA-01 applications have also taken effect. Beginning in November 2014, Indonesia began requiring that copies of university degree certificates, curriculum vitae and letters of reference be submitted with the sponsoring company’s stamp and a signature from the appropriate company HR or administrative official. Degree certificate copies, curriculum vitae and letters of reference also require a “materai,” stamp.

Finally, Indonesia has changed the validity period for certain work permits. Foreign investment companies holding a Principal Permit and not a Permanent License can only obtain work authorization for foreign nationals for six months. Company directors are exempt from the new requirement and can obtain work permits that are valid for a year.

BAL Analysis: The new application system creates significant delays in processing times. Applicants and their sponsors should build in as much as four extra weeks into their timelines. Employers must also be aware of the new documentation requirements and work permit validity periods in order to avoid needless complications.

This alert has been provided by the BAL Global Practice group and our network provider located in Indonesia. For additional information, please contact your BAL attorney.

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

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