Two work permits?

Hermes

Active Member
Joined
Apr 26, 2023
Messages
61
From the input on this forum, it seems that a foreign Supervisory Board director of an Indonesian company who is resident in Indonesia needs a work permit, while a foreigner residing outside Indonesia does not. Supervisory Board directorships are typically part-time, so if the foreigner is offered another position in Indonesia (eg as a consultant) with another company, can they also be sponsored for a work permit for that activity as well?
 
If one cannot hold two work permits, then for a spouse Kitap holder could the strategy then be to do the consulting independently under UU 6 2011 pasal 61 (offshore contract with foreign parent company, but with income taxes paid to Indonesia), and retain the work permit for the local board position?
 
If one cannot hold two work permits, then for a spouse Kitap holder could the strategy then be to do the consulting independently under UU 6 2011 pasal 61 (offshore contract with foreign parent company, but with income taxes paid to Indonesia), and retain the work permit for the local board position?
Answer should be generaly yes, but the work has to be delivered out of Indonesia (mentioned in invoices, contracts) and the company should not have, at least, direct, activity in Indonesia (having a subsidiary should not qualify for firect activity).
 
Answer should be generaly yes, but the work has to be delivered out of Indonesia (mentioned in invoices, contracts) and the company should not have, at least, direct, activity in Indonesia (having a subsidiary should not qualify for firect activity).
Ok interesting, but going back to the original question, can it be true that a senior foreign executive resident in Indonesia and sitting on a supervisory board can only do that part-time activity, and not be employed in any other capacity in Indonesia (even with a work permit)? This sounds very strange, as it is common in many countries for such persons to have multiple part-time board positions in addition to their main employment. Can anyone cite a law or regulation supporting the position that one cannot be permitted to do both activities in Indonesia?
 
Ok interesting, but going back to the original question, can it be true that a senior foreign executive resident in Indonesia and sitting on a supervisory board can only do that part-time activity, and not be employed in any other capacity in Indonesia (even with a work permit)? This sounds very strange, as it is common in many countries for such persons to have multiple part-time board positions in addition to their main employment. Can anyone cite a law or regulation supporting the position that one cannot be permitted to do both activities in Indonesia?
If you are in a board position, you can have an additional work permit on another board (of directors/commissioners). You cannot have additional work permits for non-board positions, except in rare cases, that have to be approved by the Ministry of Manpower (vocational sector education, digital economy, and oil and gas MIGAS contracts).

It sounds strange if you are a newcomer, but common sense applied to other countries does not hold here.

Regulation is PP34 2021 Tentang Pengunaan Kerja Asing, Article 5.
 
If you are in a board position, you can have an additional work permit on another board (of directors/commissioners). You cannot have additional work permits for non-board positions, except in rare cases, that have to be approved by the Ministry of Manpower (vocational sector education, digital economy, and oil and gas MIGAS contracts).

It sounds strange if you are a newcomer, but common sense applied to other countries does not hold here.

Regulation is PP34 2021 Tentang Pengunaan Kerja Asing, Article 5.
Thanks for this. Interesting you say that one can have an additional work permit on another board of directors/commissioners. Usually the Board of Directors in Indonesia is comprised of executive management (unlike the Board of Commissioners, which is non-executive), so then presumably an executive director role on the Board of Directors, in addition to the Board of Commissioners of another company, would be permissible?
 
Thanks for this. Interesting you say that one can have an additional work permit on another board of directors/commissioners. Usually the Board of Directors in Indonesia is comprised of executive management (unlike the Board of Commissioners, which is non-executive), so then presumably an executive director role on the Board of Directors, in addition to the Board of Commissioners of another company, would be permissible?
So, reading the article, by my understanding, it looks like directors have to match directors, and commissioners have to match commissioners.

However, the Ministry of Manpower could have a loose interpretation, allowing cross positions, but for that, you would have to ask them directly -do they allow it or not? It would not be the first time that implementation is different from the regulation.
 
So, reading the article, by my understanding, it looks like directors have to match directors, and commissioners have to match commissioners.

However, the Ministry of Manpower could have a loose interpretation, allowing cross positions, but for that, you would have to ask them directly -do they allow it or not? It would not be the first time that implementation is different from the regulation.
It seems the safest approach to comply with PP34 2021, pasal 5 (absent seeking an interpretation from the MoM) is to join the second company as a Board Commissioner as well, and provide the consultative advice and recommendations to executive management in that context. Problem solved, thank you centurion for your helpful information and link to PP34 2021. Much appreciated!
 

Users who viewed this discussion (Total:0)

Follow Us

Latest Expat Indo Articles

Latest Tweets by Expat Indo

Latest Activity

New posts Latest threads

Online Now

Newest Members

Forum Statistics

Threads
6,062
Messages
100,218
Members
3,128
Latest member
ramsau
Back
Top Bottom