Indonesian Political, Business & Finance News

RI no paradise for expats

| Source: JP

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.

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