Thu, 30 Sep 2004

More red tape ensnares expats

Bambang Nurbianto, The Jakarta Post, Jakarta

Lengthy and unclear bureaucratic procedures for foreigners to obtain permission to work in Indonesia have attracted many to work as informal immigration agents.

The agents offer services to arrange and procure the necessary documents, as both local and foreign companies wanting to employ foreigners have been frustrated by the complicated procedures.

According to several such agents, following procedures to the letter was not enough to ensure the timely processing of required documents.

They told The Jakarta Post on Wednesday "extra money" was also needed to bribe relevant officials. The agents' fees include these "honorariums", and are thus far above the official processing fees set in existing regulations.

The agents' fees for arranging complete documents for a single foreign employee range from Rp 2.5 million (US$271) to Rp 3.6 million, whereas official fees are under Rp 1 million.

"Don't hope they (the officials) will issue documents on time if you don't give them 'tips', even though you have met all requirements," Agus (not his real name), an agent who works out of an East Jakarta office, told the Post.

Of course, he said, the "tips" of about Rp 300,000 per official were illegal, as several notices at the Ministry of Manpower and Transmigration read "free processing".

He said similar "tips" should also be prepared for other relevant institutions like the immigration, the police, the population and civil registration, and subdistrict offices.

The "tips" are part and parcel of the bureaucratic procedures, as David (an alias), an expatriate seeking to extend his son's temporary stay permit (KITAS), acknowledged.

"I was told that Rp 200,000 is the normal 'tip' to speed things up. We didn't pay and, as a consequence, were treated very rudely," he said, speaking of an official who works in Cawang, East Jakarta.

Many expatriates share their frustrating experiences at www.expat.or.id, a website for foreigners living and working in the country.

According to the City Population and Civil Registration Agency, about 32,000 of 36,000 foreigners in Jakarta hold a KITAS, while only about 4,000 hold permanent stay permits (KITAP).

Agus said no data existed on the number of agents offering their services, but he thought it might reach hundreds -- some worked for companies, while the others were freelancers.

Another agent, who asked that her identity be withheld, said her Central Jakarta-based company served at least 20 clients a month.

"Our clients can be new people who want to work here, or those who want to extend their permits," she said. Her company charged the same for first-time processes and extensions.

Manpower and immigration procedures for foreigners applying to work in Indonesia weave through much red-tape and require documentation from a variety of institutes. First, the applicant must have proof of corporate sponsorship in order to initiate the lengthy process, but sponsorship can only be provided by companies with an Expatriate Placement Plan (RPTKA), which are approved by the manpower ministry.

The proof of corporate sponsorship is needed to obtain other documents, including a KITAS from the immigration office and a recommendation to grant the TA01 work visa -- from the manpower ministry for local companies or the Investment Coordinating Board (BKPM) for foreign companies.

Other necessary documents are work permits (IKTA) issued by the manpower ministry, police registration certificate (SKLD), foreign identity card (KIP) and family members certificate (SKSKP) issued by the population and civil registration agency, and residential registration certificate (SKTT) issued by a subdistrict office.