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INDONESIA - Simplified Work Permit Application Process for Oil and Gas Companies

Effective immediately, oil and gas companies that intend to hire foreign workers in Indonesia no longer require RPTKA (request for approval to hire foreign workers) or IMTA (work permit) recommendation letters from the Directorate General of Oil and Gas ("Dirjen MIGAS") and can now apply for a work permit directly at the Ministry of Manpower.

This change should significantly decrease processing times for work permits in the oil and gas sector.

Document Requirements

Oil and gas companies and contractors which intend to employ foreign workers for a period of more than six months ("Long-Term Work Permit" up to twelve months) no longer need to follow the document requirements set out by Regulation ESDM 31/2013. Aside from the standard document requirements, applicants do need to fulfil at least the following requirements to successfully apply for a Long-Term Work Permit:

  • Work experience (in the oil and gas sector) of at least five years, proven by reference letter;
  • A bachelor's degree or higher;
  • An Indonesian Labor Companion (a local counterpart employee) for the transfer of knowledge and technology;
  • Project contract/cooperation agreement.

Further Details

  • For Partnership Contract Companies (K3S), it is not yet confirmed whether a recommendation from SKK MIGAS is required.
  • Sub-contractor companies (both oil and gas and non-oil and gas) used by oil and gas companies can work in the oil and gas sector without any approval or recommendation from the Dirjen MIGAS. This applies to both new work permits and work permit renewals;
  • The Dirjen MIGAS no longer has the authority to supervise foreign workers in oil and gas companies. The supervision of foreign workers from now on will be conducted by the Ministry of Manpower and the Immigration Office.

Action Items

  • Companies active in the oil and gas sector should be aware that in the future new regulations may be issued which may lead to additional restrictions.

This news alert was prepared using information provided by PNB Law Firm.

DISCLAIMER: The information contained in this immigration alert has been abridged from laws, court decisions, and administrative rulings and should not be construed or relied upon as legal advice. If you have specific questions regarding the applicability of this information, please contact Peregrine © 2017 Peregrine Immigration Management Ltd.