With the increasing demands for high-quality workers, it is very common nowadays for local companies to hire expats/foreign workers. To start, expats are foreigners holding a working pass who makes a living in Indonesia. In order to obtain the working pass, there are certain requirements for foreign workers in Indonesia. It is important that the expats have exceptional skills and qualifications to ensure that they do not “steal” the available jobs for the locals. In Indonesia, there are certain jobs that foreign workers are not allowed to work as, such as personnel manager, human resource manager, chief executive officer (CEO), career advisor, job interviewer, and many more. Fortunately, they are able to hire foreign workers with no minimum age required.
Yet, although it seems simple to hire expats, there are certain requirements to be fulfilled for a company to be eligible to hire them. For the foreign workers themselves, it is not easy to obtain working pass. First of all, they must have outstanding academic achievements in a certain field. Then, they must have had experience of at least 5 years in the particular field, and they have to teach their specialty to the assisting local worker (Tenaga Kerja Pendamping). Aside from these, they must also hold taxpayer registration (NPWP) and Temporary Stay Permit (ITAS).
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Furthermore, the requirements extend further for the hiring company. To begin with, they must issue a permit that requires intricate steps. They must also report to the authority about their usage of foreign workers for every specified period of time. There are many other rules required to be fulfilled, such as making sure that the assisting local worker is benefited from the expat. If they fail to do so, the hiring company will be liable to jail time and fines according to the law, or they might also lose their privilege to hire foreign workers in Indonesia. It takes a lot of time and effort in order for a company to hire expats. And not only the requirements stated above, the hiring company would still need to calculate the social security and income tax for them. It is quite a redundant and time-wasting process if we are to process it manually by ourselves.
Luckily, by using HRIS Software provided by Gadjian, HR Administration matters are as easy as a snap. The payroll software is highly beneficial rather than the manual system, in terms of effort and time consumed to complete the process. The system will automatically manage the administration matters according to Indonesian labor law. It will be so much faster and easier, guaranteeing accurate and satisfying results for the hiring companies.
