BKPM Rule Expands the Number of Expats Who Can Apply for Indonesian Work Permits During COVID-19

Legal Updates
BKPM Rule Expands the Number of Expats Who Can Apply for Indonesian Work Permits During COVID-19
22 June 2020

By Stephen Igor Warokka and Kevin Bonaparte Christopher

The Indonesian Capital Investment Coordinating Board ("BKPM") has issued rules that will allow more foreign nationals to apply for work permits during the COVID-19 pandemic. The new rules are contained in BKPM announcement No. 8/PENGUMUMAN/A.5/2020 dated June 11, 2020, regarding the procedures to apply for a support letter from the BKPM (\"BKPM Support Letter”) in relation to the entrance of expatriates into Indonesia during the pandemic (the \"BKPM Announcement”).

Previously, following the issuance of Minister of Manpower Circular Letter No. M/4/HK.04/IV/2020 dated April 8, 2020, only companies working on strategic national projects or expatriates already holding Stay Permits and already in Indonesia could apply for work permits during the COVID-19 emergency. Now, with the issuance of the BKPM Announcement, companies other than those working on strategic national projects may apply for work permits for their expatriate employees if they can provide the required supporting documents.

A hard copy of the application letter for the BKPM Support Letter must be delivered to the BKPM administration office (Tata Usaha BKPM). The application letter, addressed to the Head of the BKPM, must contain the following:

1. Signature of the applicant company\'s top executive (president director/director/CEO);

2. Cellular phone number of the person in charge of the application;

3. The purpose of bringing in the relevant expatriate;

4. The value of the applicant company\'s total investment in Indonesia and project locations;

5. Hiring plan for Indonesian workers;

6. The relevant expatriate worker\'s name, passport number, citizenship, job title; and

7. Statement of willingness to comply with COVID-19 health protocols.

The BKPM will return the application letter to the applicant if any of the required information is missing. If the application is approved, the BKPM will convey the Support Letter to the relevant institutions, such as the Ministry of Manpower and the Directorate General of Immigration, and the applicant can collect a hard copy of the Support Letter at the BKPM administration office. 

The BKPM Announcement does not provide how long it will take the BKPM to review an application and issue the Support Letter. In practice, it could take about five business days, depending on the number of applications being handled by the BKPM.

This publication is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user\'s own risk. You should contact a lawyer in your jurisdiction if you require legal advice. All SSEK publications are copyrighted and may not be reproduced without the express written consent of SSEK.

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