- Given that the employment of foreign construction workers (Tenaga Kerja Konstruksi Asing – “TKK Asing”) remains essential to Indonesia in terms of efforts to complete large-scale construction projects, particularly regarding areas in which certain competencies or technologies have yet to be fully mastered by domestic professionals, the Director-General of Construction Development (“Director-General”) at the Ministry of Public Works and Public Housing (“Ministry”) has decided to introduce a new set of guidelines that specifically address the utilization of TKK Asing by the Ministry (“Guidelines”) through the issuance of Circular of the Director-General of Construction Development No. 76/SE/DK/2024 (“Circular 76/2024”), which has been in force since 14 October 2024.
- The Guidelines will now serve as a reference for use by service providers that employ TKK Asing based on employment contracts under construction service packages at the Ministry (“Service Providers”) in order to ensure that said employment adheres to applicable Laws and Regulations. Overall, the Guidelines address the following specific aspects: 1) General provisions on the utilization of TKK Asing; 2) Responsibility of commitment-making officials to ensuring compliance in terms of the utilization of TKK Asing; and 3) Supervision and evaluation of the utilization of TKK Asing.
- In essence, all Service Providers should prioritize the utilization of domestic construction workers and should only employ TKK Asing in certain positions that cannot be filled by said domestic workers. In this regard, the utilization of TKK Asing must be preceded by the submission of applications to secure approvals for the utilization of TKK Asing.
- The Guidelines outline a total of seven obligations that must be met by all Service Providers that employ TKK Asing, including: 1) The employment of any TKK Asing must be undertaken in line with drafted plans for the utilization of foreign workers (Rencana Penggunaan Tenaga Kerja Asing/RPTKA); 2) Indonesian construction workers must be appointed as partners for employed TKK Asing in order to effect knowledge and technology transfers; and 3) TKK Asing must be facilitated in Indonesian language training and education. Meanwhile, the Guidelines also set five requirements that apply to the aforementioned TKK Asing, including: 1) May only occupy certain positions and must possess expert qualifications; 2) Must secure visas and stay permits; and 3) Must complete competency alignments and registrations via the Construction Services Development Agency (Lembaga Pengembangan Jasa Konstruksi/LPJK) prior to engaging in construction services.
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