VisayingEvery expat here is subject to a complicated set of rules and precedures governing our stay here. Those of us who have made a longish-term commitment seek a sponsor for our work and residence permits because the procedures for obtaining them are not transparent and the costs are horrendous.
They are horrendous and complicated for employers too, so it was good to see the Jakarta Post running a Special Report on the issue.
Although I am giving the hyperlinks to two articles by Ridwan Max Sijabat, please note that to view the articles online involves registering with the Post, a time consuming hindrance for those of us here with lousy connections to our ISPs. It makes sense, therefore, for me to post the articles for your instant edification. If you have particular insights, horror stories, or even, surprise, surprise, tales of bureaucratic efficiency, please leave them in my comments box.
Money talks for smooth processing of work, stay permits Stop by Floor M of the Manpower and Transmigration Ministry on Jl. Gatot Subroto in South Jakarta to witness a finely honed bureaucratic process in full working order.
The unsuspecting would be surprised to find a crowded hall, resembling the bustle of a traditional market, with long lines of people at cubicles for the processing of expatriate work permits.
It's organized chaos operating according to its own discreet culture, governed by a tacitly understood process of transactions where money but few words are needed.
Most companies who employ expatriates choose to hire agents to navigate the complicated and potentially time-consuming ins and outs of the process.
On a recent afternoon, an agent, accompanied by his Italian client, went from desk to desk to secure five preliminary documents before an expatriate employment permit (IMTA) was furnished.
No additional bargaining was needed, because the agent knew the amount needed, including the extras presented for satisfactory service.
The approval for the expatriate employment plan (RPTKA) - defining the role of the expatriate within the institution - costs Rp 150,000 (about US$18), and the IMTA was issued after the officer in charge was presented with an envelope containing Rp 200,000.
It took two weeks, and a total of Rp 1.2 million for the various payments, to secure the two essential documents.
With little supervision and clear overstaffing in the department, many of the employees are available to offer additional help to facilitate the visa processing (the discovery of fake IMTA documents, with falsified receipts for the payment of funds for development, is being investigated by the ministry).
The securing of the work permit is one thing; an expatriate also needs permission to reside here.
The same Italian expatriate paid Rp 800,000 for a temporary stay permit at the South Jakarta immigration office, with the funds used to confirm the expatriate's arrival documentation, pay for the telex to inform the Indonesian Embassy in Rome of the issuance of his permit, to purchase the "blue book", which documents changes in the holder's immigration status, and also to apply for a temporary stay permit (KITAS).
It's possible to get the latter two documents within a few days, depending on the agent's clout and the "recreation" money paid to immigration officers. Expatriates are allowed to apply for a permanent stay permit (KITAP) after using a Kitas for an uninterrupted five-year period (formerly 10 years). A Kitap costs, with benefits including the right to hold a residence card, between Rp 50 million and Rp 100 million.
It took another three months, an additional Rp 3.5 million, for the Italian to secure the KITAS.
Bureaucratic procedures become even more complicated when expatriates extend their KITAS and IMTA, with recommendations needed from the local population office, the National Police Headquarters and the National Intelligence Agency.
"Rachel", an expatriate who has tried to process her own visa, says it has proven time-consuming and costly.
"They will tell you that you need this document, or another one, and to come back another day," she said. "I'm also pretty much at their mercy, because I don't want to and really can't pay extras, so they tell me to bring in presents for them instead."
The following is the table of documents and unofficial costs (= 'presents' for the bureacrats) as appended to the above article. (Apologies for the not-very-good layout, but I can't get tables working in Blogger. Can anyone?)
...... Document ............... Issuer ................ Process ........ 'Rates' ...
..................................................................................................... Rp ......
1. Mandatory report .. Population Office ........... 2 days ....... 200,000
2. RPTKA .................. Manpower Ministry ......... 7 days ....... 150,000
3. TA-01 .................... Manpower Ministry ......... 3 days ......... 75,000
4. Telex ..................... Immigration Office ......... 7 days ........ 300,000
................................................................................................ + US$100
5. Arrival card ........... Immigration Office .......... 1 day ......... 100,000
6. Fingerprinting ....... Immigration Office .......... 1 day ......... 100,000
7. POA* .................... Police Headquarters ....... 1 day ........... 50,000
8. Blue book ............. Immigration Office ......... 3 days ........ 200,000
9. KITAS ................... Immigration Office ......... 3 days ........ 200,000
10. Reentry permit ... Immigration Office .......... 1 day ......... 100,000
11. DPKK* ............... Manpower Ministry ........... 1 day ..... US$1,200
12. IMTA .................. Immigration Office ........... 3 weeks .... 150,000
13. SKPPS* ............. Local population office .....1 day .......... 35,000
14. SKTT* ................ Population Office ..............1 day .......... 50,000
15. STM* .................. Police Station ................... 1 day .......... 25,000
16. SKLD* ................ Police Headquarters ........ 1 day .......... 75,000
............................................................................................ Rp.1,810,000
............................................................................................. + US$ 1,300
* POA: Monitoring of foreigners
* SKPPS: Recommendation for temporary resident
* SKTT: Recommendation for expatriate resident
* STM: Letter of registration with local police station
* SKLD: Letter of registration with National Police Headquarters
Employers want red tape slashed for expatriate workersThe complicated and time-consuming immigration system for employing expatriates is turning off investors and needs urgent reform, employers say.According to the Indonesian Employers Association (Apindo), processing work and stay permits for foreigners means navigating one's way through a maze of bureaucracy in which there are few clear rules of engagement. The pitfalls usually involve corrupt officials manipulating overlapping regulations to their benefit, with a mass of paperwork and meaningless technicalities slowing down what should be a relatively straightforward process."Foreign investors or expatriates are required to have a stay visa and a work permit in hand. It sounds simple but in reality they have to deal with a great number of offices to get recommendations and other minor documents to obtain the two main documents, consuming time and money. Most expatriates or their company sponsors have to pay up to Rp 50 million (US$5,000) a person and wait until two or three months for the two documents' to be issued," secretary general Djimanto told The Jakarta Post here recently.The vague and overlapping nature of the regulations only encouraged corruption, Djimanto said.For many years, Apindo has called for the government to review the complicated 1995 Visa Index Law for temporary work permits for foreigners because the regulations were being misused by immigration staff to extort expatriates and their sponsors.Under the law, expatriates must apply for immigration permits if their work takes them between provinces and must report regularly to the police, immigration, manpower and population registry offices."Expatriates and their sponsor companies are open to such supervision but it is extremely disruptive and time-wasting if officers from the different offices come every week and ask for money," Djimanto said.The immigration department should issue only one work visa, allowing investors and expatriates to move freely around the country like the single EntryPass given to expatriates living and working in Singapore, he said. The expensive-but-streamlined process takes less than two weeks.Apindo called for the revision of the Ministerial Decree No. 20 on documentation procedures because it contravened the spirit of free trade and was "more restrictive than selective"."We are in need of foreign investors and expatriates to help accelerate economic growth and speed up the transfer of technology, specialized skills and knowledge to locals," Djimanto said.The imposition of a monthly US$100 tax on expatriates to offset the cost for training local workers should also be abolished because it was ineffective."The government has collected billions of dollars from around 40,000 expatriates living here during the past three decades but no locals have been trained under the so-called skills and development program."There are numerous expats living here teaching English, working in National Plus schools and universities. All are subject to the $100 per month payable for a year upfront to the Manpower Ministry for a training development programme. There is surely a paradox in double taxing the only people carrying out a programme in line with the Ministry's stated objective.
Other laws the government should revise included the 2003 Labor Law, Presidential Decree No. 75/1995 on the employment of expatriates and Ministerial Decree No. 228/1995 restricting jobs for expatriates, Djimanto said.The latter is expected to be revised this month.
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