The Investment Coordinating Board (BKPM) estimates that Presidential Regulation No. 20 of 2018 on the Usage of Foreign Workers is expected to push the investment until 20 percent. Head of BKPM Thomas Trikasih Lembong said, the permit to usage of foreign workers is one of the main complaints of investors who invest in Indonesia.

"In this foreign workers permit they (investors) have to meet and go around the agencies. If this rule is really on the path of reform that covers ‘Online Single Submission`, I think the increase can be 10-20 percent," he said.

The former Minister of Trade ensures that the increase of investment will encourage the usage of foreign workers. The reason is that the international investors have been putting billions dollars in other countries with full of risk.

"I’m sure they (the investors) wants to bring their people because it would be too risky if something happen. If I were an investor I would want to put my own people or the best people in the world without seeing their citizenship in the investment," he said.

Nevertheless the number of foreign workers in Indonesia only reach one per thousand compared than the number of Indonesian workers currently working abroad. In fact, roughly, from 1,000 workers in Indonesia, only one of them is a foreign worker.

"So it is unreasonable that 999 Indonesians ‘fear’ to be surrounded by a single stranger. This fact has even been recognized by senior figures on the opposition coalition," he said. Although the government supports the simplification of procedures for the usage of foreign workers, the government on the other hand continues to improve the skills and knowledge of local workers.

It is hoped that these efforts can encourage local workforce to develop with better jobs and earn higher income. "Therefore, the government prepares vocational training programs and polytechnics to improve the skills of our workforce in order to develop," he concluded.

Source: Bisnis Indonesia

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The public must not worry about the arrangement of foreign worker (FW) license that are designed by the government. Therefore, the structuring of FW license will ease the demand of investment, so quickly developing the economy, and creating more jobs.

The Minister of Manpower, Hanif Dhakiri, said the arrangement of FW license also do not mean to ease all foreign workers to enter or exit of Indonesia. It just arranges for the licensing procedure and work permit in Indonesia to be more simple, faster, and accountable.

Hanif also responds to public concern about the easily possibility of FW entering Indonesia, because of the arrangement of FW license. "Do not worry too much, the arrangement of FW license is for the demand of investment so develop the economy and create more job. And, the arrangement does not mean to make the easy. It just makes the licensing to be more simple, faster and accountable," said Hanif on his written statement.

He explains that the arrangement is done for all of licensing procedure of integrated investment through single submission system, either at central or regional level. A lot of investors are hampered because of difficult licensing process when they want to invest in Indonesia.

According to him, a single submission system, will ease the bussines and invest. So it will create more jobs. "We need a lot of investment, both domestically and internationally to create jobs. It is certainly for Indonesia people, not for others," said Hanif.

"The usage of foreign workers are only necessary and still have to meet the qualification. Blue-collar workers who have been banned from entering since earlier will still be banned. So please do not misunderstand," He added.

On the other hand, according to Hanif, the government continues to boost the quality of Indonesian human resources, especially to fill the lack of the position of upper middle level. But there are excess labor (over supply) on lower level. This group need to be given opportunities to improve their skill.

"Our 128 million active workers are still dominated by people who graduate from elementary or junior high school. We are over supply on lower level, but lack on upper middle level. It is the task of government to upgradethe skill of our human resources, good quality, enough quantity, and spread all over the region," he concluded.

Disclaimer: This article is a summary of news articles obtained from a number of mass media. We are not responsible for the accuracy of data or sources of information presented by the mass media that became the reference.

INESIA is an Indonesian Legal Process Outsourcing provider. INESIA has assisted Clients in establishing Foreign Direct Company and Representative Office more than 250 entities with 100% success rate. We also assisted local and multinational companies in handling their corporate legal matters, including providing legal retainer services for day to day business operations.

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