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One recent case involved some 500 Chinese workers who were granted entry in June this year
to work on nickel smelter projects in South Konawe regency, Southeast Sulawesi, which sparked
demonstrations from local residents incensed about the employment of foreign workers at a
time when many of their own had been laid off because of the COVID-19 pandemic.

Similar sentiments were expressed on Oct. 9 by the Confederation of Indonesian Trade Unions
(KSPI), which criticized the government for removing permit requirements for employing
foreigners in the new jobs law.

“It’s obvious that this will ease [efforts to] bring in foreign workers. Not to mention that, in
practice, many unskilled foreign workers will still enter the country,” the union wrote in a press
release.

The government has denied that it is rolling out the red carpet for foreign workers. Manpower
Minister Ida Fauziyah said on Oct. 8 in a virtual press conference that the Job Creation law
allowed foreign workers to be employed in Indonesia only in a “certain work relationship for a
certain position for a certain time”.

Foreign workers must also have competencies that fit the job description.

“So not all positions can be occupied by foreign workers,” Ida insisted, while dismissing claims
that the law provided some leeway for foreigners.

The minister stressed that every employer would still need to submit the RPTKA plans that are
subject to review by the central government.

“Individual employers” are also [prohibited from employing foreign workers, she added. Amid
heated debate over a law that has yet to be made publicly available for scrutiny, Malaysian
national Sean Ng, who works in the marketing division of a gaming company in Indonesia, said
it was still unclear what was meant by the “certain skills” that qualify for an income tax break.

However, Ng supported having simpler laws; he said he had to spend three to four months to
secure his temporary stay permit or KITAS, which in turn could imply that it may take much
longer to obtain a permanent stay permit or KITAP that can be used as the basis for in-country
employment.

Ng said that there needed to be a “sweet spot” between balancing the number of foreigners
and local workers required.
“Different ideas and a variety of points of view are good, but it shouldn’t be too much [that] it
would reduce opportunities for locals,” he said.

As a business owner himself, John said that the removal of the IMTA permit would save
companies from having to pay a small fee. But the tax incentive would not affect foreigners who
are already being taxed internationally by their home country.

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