Announcement

Collapse
No announcement yet.

Work Regulations for KITAP holder

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Work Regulations for KITAP holder

    Dear All

    I have read most of the posts on the subject of regulations covering work by a KITAP holder but would like some further advice on my particular situation.

    My wife-sponsored KITAP, originally issued in 2012, is now on it's first extension. While holding the KITAP I have had a position with a local PMA and have complied with all regulations (IMTA, tax etc).

    Commencing soon I will terminate with the local PMA and start a new consultancy contract with a foreign company to advise them on business development of exports to Indonesia. This foreign company does not yet have a KPPA or KP3A in Indonesia. The consultancy contract would be signed overseas and I would be paid a monthly consultancy fee from overseas direct to my Indonesian US$ bank account. I hold an NPWP and would report this income and pay Indonesian income tax according to the Indonesian income tax scale. Part of this consultancy would involve meeting with potential Indonesian clients who would then conduct business by direct import from the foreign supplier. I have a few questions relating to this situation:

    1. As a wife-sponsored KITAP holder can I work in Indonesia as an independent consultant to a foreign company or does the foreign company first need to open a KPPA or KP3A?
    2. If I can work as a consultant without opening a KP3A do I need an IMTA (bearing in mind I would be working as an individual contractor, not as a PT or PMA)?
    2. If the foreign company decides to set up a Representative Trade Office (KP3A) in Indonesia, can I continue consulting direct to the parent company or, would I need to be employed as the Chief Representative (or Assistant to the Chief Representative) of the KP3A?

    Any clarification on the above would be greatly appreciated.
    Walk quietly and carry a bloody big stick... (Teddy Roosevelt didnt say "bloody" did he?)

  • #2
    1. Yes , you can (but better confirm with your local Manpower office) . I think that your best option is : your Indonesian spouse set up a small business and you work informally for it . This way you will pay less income tax too .

    2. No .

    3. I think that you can work directly with the foreign based company (as specified in "1" above) regardless of that company having an office in Indonesia .

    I don't know if a Representative Trade Office can hire a foreigner , but if it can then I think you have this additional option but better get an IMTA/Work Permit sponsored by it .


    http://www.livinginindonesiaforum.or...esian-and-work (work under Article 61 of UU no.6/2011)

    http://www.livinginindonesiaforum.or...018#post246018 (work in the wife's business??)

    Comment


    • #3
      Originally posted by marcus View Post
      1. Yes , you can (but better confirm with your local Manpower office) . I think that your best option is : your Indonesian spouse set up a small business and you work informally for it . This way you will pay less income tax too .

      2. No .

      3. I think that you can work directly with the foreign based company (as specified in "1" above) regardless of that company having an office in Indonesia .

      I don't know if a Representative Trade Office can hire a foreigner , but if it can then I think you have this additional option but better get an IMTA/Work Permit sponsored by it .


      http://www.livinginindonesiaforum.or...esian-and-work (work under Article 61 of UU no.6/2011)

      http://www.livinginindonesiaforum.or...018#post246018 (work in the wife's business??)
      Hello Marcus

      Many thanks for the reply and clarification. Will follow your advice.

      On the matter of a Representative Trade Office hiring a foreigner my understanding is that under Ministry of Manpower and Transmigration Decree No. 464 Year 2012 a Representative Trade Office can employ foreigners but the positions occupied by foreigners are limited to the Chief Representative and the Assistant Chief Representative with a minimum of 3 local workers for every foreign worker.
      Walk quietly and carry a bloody big stick... (Teddy Roosevelt didnt say "bloody" did he?)

      Comment


      • #4
        Originally posted by BULE_NYASAR View Post
        ... On the matter of a Representative Trade Office hiring a foreigner my understanding is that under Ministry of Manpower and Transmigration Decree No. 464 Year 2012 a Representative Trade Office can employ foreigners but the positions occupied by foreigners are limited to the Chief Representative and the Assistant Chief Representative with a minimum of 3 local workers for every foreign worker.

        Are you talking about the "KEPUTUSAN MENTERI TENAGA KERJA DAN TRANSMIGRASI REPUBLIK INDONESIA NOMOR 464 TAHUN 2012
        TENTANG JABATAN YANG DAPAT DIDUDUKI OLEH TENAGA KERJA ASING PADA KATEGORI PERDAGANGAN BESAR DAN ECERAN SERTA REPARASI DAN PERAWATAN MOBIL DAN SEPEDA MOTOR" ?
        Last edited by marcus; 4 days ago.

        Comment

        Working...
        X