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BKPM Issues New Policy on Foreign Worker Permits

December 20, 2023 • Batavia Alerts
BKPM Issues New Policy on Foreign Worker Permits

The Investment Coordinating Board (BKPM) has issued new streamlined procedures for foreign worker permits (IMTA), with mandatory online processing and reduced processing time from 15 to 7 working days.

New IMTA Procedures

The Investment Coordinating Board (BKPM) has issued Regulation No. 5 of 2023 on Foreign Worker Permits (“IMTA”), introducing streamlined procedures for companies employing foreign workers in Indonesia. The regulation is effective January 1, 2024.

Key Changes

Simplified Application Process

  • All applications must be submitted through the Online Single Submission (OSS) system
  • Elimination of multiple document requirements
  • Digital approval certificates replacing physical documents

Reduced Processing Time

Permit TypePrevious TimelineNew Timeline
RPTKA (Work Plan)10 working days5 working days
IMTA (Work Permit)15 working days7 working days
Notification3 working days1 working day

Extended Validity Period

  • IMTA validity extended from 12 to 24 months
  • Automatic extension for positions in priority sectors
  • Simplified renewal process without re-submission of supporting documents

New Requirements

Mandatory Training Program Foreign workers must complete:

  • Indonesian language training (40 hours)
  • Cultural orientation program (16 hours)
  • Professional ethics certification

Knowledge Transfer Obligation Companies employing foreign workers must:

  • Appoint Indonesian counterpart for each foreign worker
  • Submit quarterly knowledge transfer reports
  • Document training and mentoring activities

Position Restrictions Updated list of positions closed to foreign workers, now including:

  • Human Resources Director
  • Compliance Officer
  • Supply Chain Manager (newly added)
  • Government Relations Manager (newly added)

Exemptions

The following categories are exempt from certain requirements:

  • Directors and Commissioners with share ownership
  • Diplomatic personnel
  • Emergency technical specialists (limited to 3 months)
  • Researchers and academics

Compliance Action Items

Companies should:

  1. Audit Current Foreign Workers - Review existing permits and positions
  2. Update RPTKA - Submit revised work plans through OSS
  3. Schedule Training - Enroll foreign workers in required programs
  4. Implement Knowledge Transfer - Document mentoring relationships
  5. Budget for Compliance - Plan for training and reporting costs

Important Deadlines

  • January 31, 2024 - Registration in OSS system
  • March 31, 2024 - Submission of updated RPTKA
  • June 30, 2024 - Completion of training programs

This alert is for general information. For foreign worker permit assistance, please contact Syafrullah Hamdi at syafrullah.hamdi@b-av.co.