RI no paradise for expats

Ridwan Max Sijabat, The Jakarta Post, Jakarta

Many companies complained on Monday about the complicated procedure and corrupt bureaucracy that they faced to obtain work permits for expatriates, saying that this had made the country's labor market less competitive.

The complaints were raised by companies participating in a symposium on expatriates that featured relevant government officials at the five-star Hotel Borobudur.

Dian S., the human resources manager of a manufacturing industry in Jakarta, said a foreign worker employed in his company was required to obtain at least nine documents to stay and work in Indonesia.

"Besides wasting time, we have to pay extra money, because while there is no money there is no service," he said, adding that this complicated procedure had caused a high-cost economy.

Another participant who requested anonymity concurred and said that the government should deregulate the complicated procedure to attract more foreign investors to invest in Indonesia.

The participant said all foreigners employed in his company were forced to travel to Singapore to renew their social-culture visas since Indonesia was yet to make available working visas for expatriates.

"Besides the complicated procedure, corrupt bureaucracy and the inappropriate implementation of regional autonomy, this has made the country less competitive than neighboring countries such as Singapore and Malaysia," he said.

The two participants declined to reveal the amount their companies had paid to acquire the documents. But, an Australian citizen employed at The Jakarta Post, said she paid around Rp 7 million (US$835) for the documents five years ago, "but, an Australian friend was recently asked to pay Rp 12 million to acquire them."

Work permits for expatriates are issued by the Manpower and Transmigration Ministry, but foreign workers are also required to get many other documents from the Immigration Office, the National Police and the Ministry of Home Affairs.

According to data from the manpower ministry, the government issued work permits to 111,303 expatriates between 1999 and 2003. But, according to data from the Ministry of Justice and Human Rights, the Immigration Office had issued temporary stay permits (KITAS and KITAB) for at least 150,000 expatriates in the same period.

Law No. 13/2003 allows the employment of expatriates only in positions that cannot be filled by locals.

Sasmita K., the personnel manager of another manufacturing company, called on the government to unveil the accountability of funds collected from expatriates to train local workers.

Chairman of the Coordinating Board for Investment (Bapepam) Theo F. Toemion, said the government was deregulating the complicated procedure and reviewing the regional autonomy law to make the country more attractive to foreign investors.

Director General for Labor Standards M.S. Simanihuruk said that in line with globalization and the free-trade era, the government was preparing "a one-roof service" to provide necessary documents for foreign investment and for work permits for expatriates.