Ministry of Manpower limits RPTKA validity period to 2 years

Medium Priority

What is the immigration news? The Ministry of Manpower will no longer issue Expatriate Placement Plans, or RPTKAs, with validity periods of more than two years.  

• Implementation: Immediate.
• Who is impacted: Indonesian companies hiring and employing foreign nationals.
• Impact on business: Despite new limitations, RPTKAs may be extended for two-years following the initial validity period and then again for one year after the initial extension. Employers should account for additional processing time and track expiry dates to ensure timely renewals.

Background: Indonesian work-permit regulations, announced in July, establish that the validity period of the RPTKAs is based on the length of the employment contract. Since provisions of Indonesian labor law establish that temporary employment agreements are to be valid for a maximum of two years, the RPTKA is limited by law to a two-year validity period.

Despite the regulations, online applicants were still able to select three-, four- and five-year RPTKA validity options on the MOM website until recently. By removing RPTKA validity options that extend beyond two-years, MOM ensures that its online system complies with Indonesian labor law and that employees have lawful work authorization moving forward.

BAL Analysis:  The removal of the option to apply for RPTKAs with validity periods of more than two years clears a discrepancy between the ministry’s application process and Indonesian labor laws and ensures that Indonesian companies are in compliance with labor regulations. For more information on RPTKA applications, please contact your immigration representative.

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