Over 50,000 expats working illegally

Over 50,000 expats working illegally

Many companies complain about the complicated, time-consuming
procedures and corrupt officials that they have to face to obtain
work permits for expatriates from the various government offices
involved. At least nine documents are required, plus an exit-
reentry permit to enter and leave Indonesia, plus a fiscal tax of
Rp 1,000,000 (US$110). Expats also are required to obtain a tax
file number.

The average fee for obtaining a work permit is Rp 5,000,000
($550) plus $100 a month payable to the manpower ministry for the
retraining of Indonesian workers.

Because of the complicated, arduous procedures and the corrupt
bureaucracy involved, plus the additional fees that must be paid
and the requirement to submit tax returns, it is estimated that
there are over 50,000 expats working illegally in Indonesia. If
an immigration officer catches an expat working without a permit,
the matter can be settled on the spot by bribing the officer to
not apply the immigration law, deport the expat or fine him the
prescribed Rp 25,000,000 fine.

Most expats in the entertainment and trading sectors are
loathe to seek work permits due to short periods of time they
spend here, and so as to avoid the fiscal tax and the need to
obtain a tax file number.

JOHAN BUKIT, Jakarta