Besides being part of foreign direct investment, the presence of foreign talents in Indonesia’s business sectors is important to encourage an exchange of best business practices that allow local companies and human resources to thrive by learning from what their international counterparts are doing.
According to data from the Manpower Ministry, Indonesia currently issues work permits to less than 100,000 foreign workers in the country for positions such as foremen, supervisors, managers, senior executives and consultants. This number is negligible compared to the country’s workforce of 125 million people.
Building a business/investment-friendly environment is of importance to attract both domestic and foreign investment, as well as foreign talents, to spur the country’s long-term investment-based economic growth. President Joko “Jokowi” Widodo once put it that the government was continuously improving, making it easier to conduct business in Indonesia to attract investment and retain foreign talents to move the country’s economic wheels forward.
To reiterate his commitment to accelerating the growth of Indonesia’s economy through foreign investment, Jokowi issued Presidential Decree No. 20/2018 on the simplification of work permit issuance for expatriate workers in order to boost the national economy and job creation through such investment activities.
Many strategies have been pursued to attract foreign talents to work in Indonesia. One important strategy is the simplification of business permit issuance, which is highly important to retain foreign talents in a country that is currently striving to reform its bureaucratic red tape.
Currently, the process of simplifying the issuance of foreign workers’ business permits is managed by the Investment Coordinating Board (BKPM), along with relevant ministries and regional administrations. The BKPM has supported foreign investment sincec the establishment of its one-stop service center three years ago.
The Manpower Ministry, meanwhile, did its part in supporting the implementation of the newly launched presidential regulation by coordinating with the Law and Human Rights Ministry to jointly develop an online system for foreigners’ work permit applications.
Besides moving the application procedures fully online, the ministries have also simplified the application process, by no longer requiring foreign workers to obtain a recommendation letter from their employers to get work, temporary stay or investment permits in Indonesia. Instead, the Manpower Ministry issued a general guideline outlining job descriptions and positions that are open for expatriates and those that are reserved for local workers, thus doing away with the requirement for foreign workers to submit a recommendation letter from their employers.
(source: BKPM/The Jakarta Post)