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Ada Pertanyaan? Hubungi Kami AEC: Govt Attempts to Balance Foreign-Worker Access Against Protection of the Indonesian Workforce
Marcell Sihombing, Ady T.D. Achmad
Minister Dakhiri. Photo by: RES
An influx of foreign workers into Indonesia is seen as an inevitable consequence of the ASEAN Economic Community (AEC) era getting underway. Indeed, ASEAN member countries have already formulated the so-called Mutual Recognition Agreement (MRA), which allows for professionals working in the accounting, technical surveying, architectural, nursing, healthcare, dental, and tourism sectors to ply their trade within any ASEAN member state. Thus, any measures that are introduced by the government will have to delicately balance the spirit of the AEC with any attempt to offer protection for the country’s domestic workers.
Minister of Employment, M. Hanif Dakhiri, has admitted that competition under the AEC is set to become more intense than it has been previously, owing to the discrepancy that exists between the number of workers and the available work opportunities within Indonesia. However, Mr. Dakhiri also asserted that the government was not allowed to block access by foreign workers to the Indonesian labor market under the rules of the AEC.
Minister Dakhiri has also emphasized that the AEC’s primary intention is to ease the flow of goods, products, services, and workers between all ASEAN member countries. With this objective in mind, the government is now focusing its energies on improving the skills of the Indonesian labor force across all sectors of the economy, as domestic workers will have to obtain the necessary competencies in order to be able to compete with workers from around the region.
Minister Dakhiri has also stated clearly that the government was taking a hands-on approach to this issue. Indeed, the government has already introduced several measures designed to protect Indonesia’s domestic workers, including restricting the market for foreign workers within Indonesia, and ensuring that domestic workers are paid reasonable salaries. Minister Dakhiri asserted that foreign workers could only take up positions which have legally been declared open for them, as stipulated under a number of sector regulations.
“They [foreign workers] must comply with the list of positions that are open for foreign workers across the relevant sectors of the economy,” explained Minister Dakhiri in Jakarta on Thursday, 21 January 2016.
Hery Sudarmanto, Director General for Labor Placement Development and Work Opportunity Expansion under the Ministry of Employment, has also weighed into the discussions and recently stated that even under the AEC framework, foreign workers were only allowed to fill the sectors, positions, and sub-positions prescribed under the prevailing laws and regulations. Furthermore, a foreign worker can only work in an occupation that conforms with his/her competencies. For example, a foreign worker trained as an engineer may not work in marketing.
“This is our way of controlling the situation, and companies caught violating the provision may ultimately have their IMTAs revoked, among other possible sanctions,” asserted Mr. Sudarmanto.
Despite the fact that Indonesia has imposed firm restrictions on the positions that are open to foreign workers, Mr. Sudarmanto also revealed that his institution had already revised a number of regulations in order to accommodate the AEC. For instance, processing times for Foreign Worker Employment Plans (RPTKA) and Foreign Worker Employment Licenses (IMTA) have been shortened from four working days to three working days, while the requirement to secure the TA-01 visa recommendation electronically (online) has been annulled.
Mr. Sudarmanto also explained the new provision relating to the composition of foreign and domestic workers within a company. Previously, companies were required to employ at least ten domestic workers for each foreign worker. However, under the recently issued Minister of Employment Regulation No. 35 of 2015, companies employing are only required to employ one domestic worker for each foreign worker.
Minister of Employment, M. Hanif Dakhiri, has admitted that competition under the AEC is set to become more intense than it has been previously, owing to the discrepancy that exists between the number of workers and the available work opportunities within Indonesia. However, Mr. Dakhiri also asserted that the government was not allowed to block access by foreign workers to the Indonesian labor market under the rules of the AEC.
Minister Dakhiri has also emphasized that the AEC’s primary intention is to ease the flow of goods, products, services, and workers between all ASEAN member countries. With this objective in mind, the government is now focusing its energies on improving the skills of the Indonesian labor force across all sectors of the economy, as domestic workers will have to obtain the necessary competencies in order to be able to compete with workers from around the region.
Minister Dakhiri has also stated clearly that the government was taking a hands-on approach to this issue. Indeed, the government has already introduced several measures designed to protect Indonesia’s domestic workers, including restricting the market for foreign workers within Indonesia, and ensuring that domestic workers are paid reasonable salaries. Minister Dakhiri asserted that foreign workers could only take up positions which have legally been declared open for them, as stipulated under a number of sector regulations.
“They [foreign workers] must comply with the list of positions that are open for foreign workers across the relevant sectors of the economy,” explained Minister Dakhiri in Jakarta on Thursday, 21 January 2016.
Hery Sudarmanto, Director General for Labor Placement Development and Work Opportunity Expansion under the Ministry of Employment, has also weighed into the discussions and recently stated that even under the AEC framework, foreign workers were only allowed to fill the sectors, positions, and sub-positions prescribed under the prevailing laws and regulations. Furthermore, a foreign worker can only work in an occupation that conforms with his/her competencies. For example, a foreign worker trained as an engineer may not work in marketing.
“This is our way of controlling the situation, and companies caught violating the provision may ultimately have their IMTAs revoked, among other possible sanctions,” asserted Mr. Sudarmanto.
Despite the fact that Indonesia has imposed firm restrictions on the positions that are open to foreign workers, Mr. Sudarmanto also revealed that his institution had already revised a number of regulations in order to accommodate the AEC. For instance, processing times for Foreign Worker Employment Plans (RPTKA) and Foreign Worker Employment Licenses (IMTA) have been shortened from four working days to three working days, while the requirement to secure the TA-01 visa recommendation electronically (online) has been annulled.
Mr. Sudarmanto also explained the new provision relating to the composition of foreign and domestic workers within a company. Previously, companies were required to employ at least ten domestic workers for each foreign worker. However, under the recently issued Minister of Employment Regulation No. 35 of 2015, companies employing are only required to employ one domestic worker for each foreign worker.
(rfs/sp)
Marcell Sihombing, Ady T.D. Achmad
Minister Dakhiri. Photo by: RES
An influx of foreign workers into Indonesia is seen as an inevitable consequence of the ASEAN Economic Community (AEC) era getting underway. Indeed, ASEAN member countries have already formulated the so-called Mutual Recognition Agreement (MRA), which allows for professionals working in the accounting, technical surveying, architectural, nursing, healthcare, dental, and tourism sectors to ply their trade within any ASEAN member state. Thus, any measures that are introduced by the government will have to delicately balance the spirit of the AEC with any attempt to offer protection for the country’s domestic workers.
Minister of Employment, M. Hanif Dakhiri, has admitted that competition under the AEC is set to become more intense than it has been previously, owing to the discrepancy that exists between the number of workers and the available work opportunities within Indonesia. However, Mr. Dakhiri also asserted that the government was not allowed to block access by foreign workers to the Indonesian labor market under the rules of the AEC.
Minister Dakhiri has also emphasized that the AEC’s primary intention is to ease the flow of goods, products, services, and workers between all ASEAN member countries. With this objective in mind, the government is now focusing its energies on improving the skills of the Indonesian labor force across all sectors of the economy, as domestic workers will have to obtain the necessary competencies in order to be able to compete with workers from around the region.
Minister Dakhiri has also stated clearly that the government was taking a hands-on approach to this issue. Indeed, the government has already introduced several measures designed to protect Indonesia’s domestic workers, including restricting the market for foreign workers within Indonesia, and ensuring that domestic workers are paid reasonable salaries. Minister Dakhiri asserted that foreign workers could only take up positions which have legally been declared open for them, as stipulated under a number of sector regulations.
“They [foreign workers] must comply with the list of positions that are open for foreign workers across the relevant sectors of the economy,” explained Minister Dakhiri in Jakarta on Thursday, 21 January 2016.
Hery Sudarmanto, Director General for Labor Placement Development and Work Opportunity Expansion under the Ministry of Employment, has also weighed into the discussions and recently stated that even under the AEC framework, foreign workers were only allowed to fill the sectors, positions, and sub-positions prescribed under the prevailing laws and regulations. Furthermore, a foreign worker can only work in an occupation that conforms with his/her competencies. For example, a foreign worker trained as an engineer may not work in marketing.
“This is our way of controlling the situation, and companies caught violating the provision may ultimately have their IMTAs revoked, among other possible sanctions,” asserted Mr. Sudarmanto.
Despite the fact that Indonesia has imposed firm restrictions on the positions that are open to foreign workers, Mr. Sudarmanto also revealed that his institution had already revised a number of regulations in order to accommodate the AEC. For instance, processing times for Foreign Worker Employment Plans (RPTKA) and Foreign Worker Employment Licenses (IMTA) have been shortened from four working days to three working days, while the requirement to secure the TA-01 visa recommendation electronically (online) has been annulled.
Mr. Sudarmanto also explained the new provision relating to the composition of foreign and domestic workers within a company. Previously, companies were required to employ at least ten domestic workers for each foreign worker. However, under the recently issued Minister of Employment Regulation No. 35 of 2015, companies employing are only required to employ one domestic worker for each foreign worker.
Minister of Employment, M. Hanif Dakhiri, has admitted that competition under the AEC is set to become more intense than it has been previously, owing to the discrepancy that exists between the number of workers and the available work opportunities within Indonesia. However, Mr. Dakhiri also asserted that the government was not allowed to block access by foreign workers to the Indonesian labor market under the rules of the AEC.
Minister Dakhiri has also emphasized that the AEC’s primary intention is to ease the flow of goods, products, services, and workers between all ASEAN member countries. With this objective in mind, the government is now focusing its energies on improving the skills of the Indonesian labor force across all sectors of the economy, as domestic workers will have to obtain the necessary competencies in order to be able to compete with workers from around the region.
Minister Dakhiri has also stated clearly that the government was taking a hands-on approach to this issue. Indeed, the government has already introduced several measures designed to protect Indonesia’s domestic workers, including restricting the market for foreign workers within Indonesia, and ensuring that domestic workers are paid reasonable salaries. Minister Dakhiri asserted that foreign workers could only take up positions which have legally been declared open for them, as stipulated under a number of sector regulations.
“They [foreign workers] must comply with the list of positions that are open for foreign workers across the relevant sectors of the economy,” explained Minister Dakhiri in Jakarta on Thursday, 21 January 2016.
Hery Sudarmanto, Director General for Labor Placement Development and Work Opportunity Expansion under the Ministry of Employment, has also weighed into the discussions and recently stated that even under the AEC framework, foreign workers were only allowed to fill the sectors, positions, and sub-positions prescribed under the prevailing laws and regulations. Furthermore, a foreign worker can only work in an occupation that conforms with his/her competencies. For example, a foreign worker trained as an engineer may not work in marketing.
“This is our way of controlling the situation, and companies caught violating the provision may ultimately have their IMTAs revoked, among other possible sanctions,” asserted Mr. Sudarmanto.
Despite the fact that Indonesia has imposed firm restrictions on the positions that are open to foreign workers, Mr. Sudarmanto also revealed that his institution had already revised a number of regulations in order to accommodate the AEC. For instance, processing times for Foreign Worker Employment Plans (RPTKA) and Foreign Worker Employment Licenses (IMTA) have been shortened from four working days to three working days, while the requirement to secure the TA-01 visa recommendation electronically (online) has been annulled.
Mr. Sudarmanto also explained the new provision relating to the composition of foreign and domestic workers within a company. Previously, companies were required to employ at least ten domestic workers for each foreign worker. However, under the recently issued Minister of Employment Regulation No. 35 of 2015, companies employing are only required to employ one domestic worker for each foreign worker.
(rfs/sp)