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Omnibus bill implications for expats

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  • Omnibus bill implications for expats

    Any thoughts on the key changes of the Omnibus bill for foreign workers?
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  • #2
    I guess that , regarding foreign workers , this new Law introduces very little change .

    From (Feb 2020)
    The Jakarta Post
    Title : Guide to omnibus bill on job creation: 1,028 pages in 10 minutes
    By Esther Samboh

    [... In the omnibus bill, foreign workers will be allowed to work in Indonesia without a work permit in positions that range from members of boards of directors and commissioners, and diplomatic or consular staff, to researchers and emergency engineers. Foreign workers in start-ups will also be exempted from work permit requirements ...]


    • #3
      I have been communicating with a consultant (i.e. Cekindo Business International), and after a lot of pingpong (going back and forth), they mentioned that with a local PT (fees USD.2,500.00 ++) and an investment of IDR.1.1 billion (of which 25% has to be deposited in the new established company bank account) you might be eligible for a work permit. In blue some of the Cekindo responses; 

      "Kindly find my explanation below :

      An investment of no less than IDT.1.1 billion (in one or separate payments?)
      [COLOR=#0000ff]The investment is not required to be invested in the company directly. Based on the regulation it is required to put at least 25% from 1.1 Billion to the company bank account. However, the implementation is not really enforced yet and there's no government body that will check on this. [/COLOR]
      [COLOR=#0000ff] [/COLOR]
       is required to -possibly- obtain a working permit if the labour department so pleases to issue one, which for a local (small company) PT is a very large sum. Question, just out of curiosity; you mentioned that this IDR.1.1 billion is an ?investment?, an investment into what exactly, please clarify.   [COLOR=#0000ff]Yes, Investment  means it's possible for following : Anything that related to company expenses, pay vendors, rent an office, employee salary. however the money itself doesn't have to be stated in the bank account for some period of time, you can always use it at any point of time. [/COLOR]

      [COLOR=#000000]Hope my explanation is clear, kindly let me know if you more questions nor clarifications. [/COLOR]

      [COLOR=#000000]Please let me know.[/COLOR]

      [COLOR=#000000]Thank you and look forward to hearing from you. [/COLOR]
      [FONT=arial, sans-serif][COLOR=#666666]Best Regards, [/COLOR][/FONT]
      Darlenne Cindy

      [FONT=Roboto,sans-serif][COLOR=#44546a]Senior Business Consultant"[/COLOR][/FONT]


      • #4
        Originally posted by benjamin123 View Post
        I have been communicating with a consultant ..., they mentioned that with a local PT (fees USD.2,500.00 ++) and an investment of IDR.1.1 billion (of which 25% has to be deposited in the new established company bank account) you might be eligible for a work permit ...

        From what I know :
        - First : this is not related to this new Omnibus Law ;

        - They are probably talking about a PT PMA . If you own a PT PMA , it is for sure possible to get a Work Permit/KITAS . It is even possible to get an Investor KITAS (without a Work Permit) .

        - I don't know the details about setting up a PT PMA , but I suggest you to be carefull with this kind of consultant information .

        http://www.livinginindonesiaforum.or...311#post254311 (Business/PMA : references , agents )


        • #5
          Hi everyone,
          - Very useful discussion in this thread. OmniBus law which was passed in early 2021 has definitely impacted foreigners and those who want to incorporate Foreign Investment Company in Indonesia. As part of the implementing regulations to the Omnibus Law (Law No. 11 of 2020), the government introduces a new investment list to replace the Negative Investment List under Presidential Regulation No. 44 of 2016 and Presidential Regulation No. 76 of 2007. The new investment list, aptly titled Priority Investment List, is issued under Presidential Regulation No. 10 of 2021 on Investment Business Activities.

          In the Priority Investment List, permitted and restricted sectors have been simplified, and instead of navigating a long list of businesses that foreign investors cannot invest in, they can now target the desired business and comply with the necessary conditions.

          There is actually a very good free webinar by MAM Corporate Solutions which talks in detail about OmniBus Law and impact on foreigners who want to establish PT PMA in Indonesia. Webinar video can be watched HERE or

          If you have further questions, I personally recommend MAM Corporate Solutions. You can consult with them about PT PMA.

          Best regards


          • #6
            Thanks for this news. As i saw above the law was implemented in 2021 and has an impact on foreigners but it will not impact as far as i think