Work visas limited to 6 months for some foreign workers

IMPACT – LOW

What is the change? Indonesia has begun limiting work visas to six months instead of one year for certain occupations.

What does the change mean? The positions that are affected include marketing advisors and quality control advisors, as well as engine installation and maintenance workers whose education and experience do not meet a certain level.

• Implementation timeframe: Immediate.
• Visas/permits affected: TA-01 approval, Work Permit (IMTA) and Stay Permit (KITAS)
• Who is affected: Foreign workers in certain advisory positions and engine workers.
• Business impact: Companies recruiting workers in these categories will have to plan for shorter work assignments that may have to be filled by Indonesian workers when the work permits expire.

Background: On Feb. 1, Indonesian immigration authorities announced that they would no longer approve one-year duration work permits for foreign workers in certain business services, trade and consulting roles. Specifically, marketing advisors and quality control advisors will now be given work visas for six months. Engine installation or engine maintenance workers who have a high school education and less than five years of experience will be given work permits for six months, and those in the field with higher levels of education and more than five years of experience may be approved for one-year work permits.

Directors and managers are exempt and will still receive 12-month work visas.

Last month, we reported that foreign investment companies holding a principal permit, instead of a permanent license, are restricted to six-month work visas for foreign employees.

BAL Analysis: The limitations on work visas affect a small sector of foreign workers, and are an indication that Indonesia is taking steps to localize labor in certain industries and occupations.

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.

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