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  • Work Regulations For Spouse Sponsored KITAP

    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; 16-04-18, 10:21.

        Comment


        • #5
          Originally posted by marcus View Post


          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" ?
          Yes Marcus. In Lampiran II of Keputusan Kemnaker 464 Tahun 2012 it states "jabatan yang dapat diduki oleh tenaga kerja asing pada kategori perdagangan besar (bukan mobil dan sepeda motor)" includes Kode ISCO 1233 which covers 1. Kepala Perwakilan (Chief Representative) and 2. Asisten Kepala Perwakilan (Assistant to Chief Representative).

          I have read on several threads some varying interpretations regarding whether a wife sponsored KITAP holder is considered TKA. Would be interested to know if there is any official opinion or announcement from either Kemnaker or Imigrasi on this issue.

          The minimum 3 local workers for every TKA was mentioned in some material I downloaded where it referred to Article 24, paragraph 3 of BKPM Regulation 15 of 2015. However, I have downloaded a copy of that Regulation and the mentioned paragraph only states that "In the event that the appointed Chairman of KP3A is foreigner and/or employment of foreign worker must be employed in accordance with the provisions of legislation". So I am still not clear on what is the requirement for number of local workers for each foreign worker at a Representative Office. If anyone can point me in the direction of the appropriate legislation I would sincerely appreciate it.
          Walk quietly and carry a bloody big stick... (Teddy Roosevelt didnt say "bloody" did he?)

          Comment


          • #6
            Originally posted by BULE_NYASAR View Post
            (a) In Lampiran II of Keputusan Kemnaker 464 Tahun 2012 it states "jabatan yang dapat diduki oleh tenaga kerja asing pada kategori perdagangan besar (bukan mobil dan sepeda motor)" includes Kode ISCO 1233 which covers 1. Kepala Perwakilan (Chief Representative) and 2. Asisten Kepala Perwakilan (Assistant to Chief Representative).

            (b) I have read on several threads some varying interpretations regarding whether a wife sponsored KITAP holder is considered TKA. Would be interested to know if there is any official opinion or announcement from either Kemnaker or Imigrasi on this issue.

            (c) The minimum 3 local workers for every TKA was mentioned in some material I downloaded where it referred to Article 24, paragraph 3 of BKPM Regulation 15 of 2015. However, I have downloaded a copy of that Regulation and the mentioned paragraph only states that "In the event that the appointed Chairman of KP3A is foreigner and/or employment of foreign worker must be employed in accordance with the provisions of legislation". So I am still not clear on what is the requirement for number of local workers for each foreign worker at a Representative Office. If anyone can point me in the direction of the appropriate legislation I would sincerely appreciate it.

            (a) Yes I saw that , but I am afraid this Regulation does not apply to a Representative Office as it states "Big Trade category" , which may mean a PT PMA . Did you confirm that with BKPM or Manpower Department ?

            (b) According to Atlantis (an ex-Moderator of this Forum and an experienced law specialist) , holders of KITAS or KITAP sponsored by Indonesian spouse are not TKA . His argument is based on the Manpower Law's definition of TKA , but Manpower officers seem not to agree with Atlantis (see their most known position in post no.2 of the first link of my first post above) . There is no official document from Manpower yet , as far as I know .

            (c) What I know about this subject is that Article 3 of PerMen no 16 , year 2015 , stated 10 Indonesian workers for each foreigner worker . But few months later , PerMen no.35 , year 2015 canceled this requirement . So now it seems there is no official government position about it .
            Last edited by marcus; 22-04-18, 22:39.

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