Work Permit Abolished by the Job Creation Law: A Serious Threat to Local Workers?
The Job Creation Law eliminates work permits, now only requiring RPTKA. This policy is considered to facilitate investment but threatens local workers.
Opinion Note
This opinion article was written by a contributor/columnist. The views expressed are entirely the responsibility of the author and do not necessarily represent the views of the editors.
CONTRIBUTOR PROGRAM
You can become a columnist at Legal Literacy.
Submit your legal opinion/analysis writing. If it is published, you have the opportunity to obtain a payout/honorarium in accordance with the provisions.
Table of Contents
Legal Literacy- Changes to Article 42 of Law No. 13 of 2003 concerning Manpower through Law No. 6 of 2023 concerning the Stipulation of Government Regulation in Lieu of Law No. 2 of 2022 concerning Job Creation into Law have sparked a lengthy debate. This article previously stipulated that every employer employing foreign workers (TKA) must obtain written permission from the Minister or an appointed official. However, after the enactment of the Job Creation Law, this obligation was removed. Employers are now only required to have a foreign worker utilization plan (RPTKA) approved by the government. This new rule is touted as a simplification of licensing, but in practice, it opens the door wide for the entry of foreign workers into Indonesia.
On the one hand, the government argues that deregulation of licensing is part of an effort to create a friendly and competitive investment climate. So far, the dual licensing of RPTKA and foreign worker employment permits has often been considered to slow down the investment process and increase bureaucratic costs. With the abolition of written permits, companies can bring in foreign workers more quickly for their business needs. This argument sounds logical within the framework of promotingease of doing business, but the fundamental question is: is this simplification in line with the constitutional mandate to protect the entire nation and provide employment for the Indonesian people?
Support
• Indonesian Legal Literacy
Read more comfortably, while supporting literacy.
Join Membership or submit your article for publication.
Membership
Read without ads, focus more, and access premium features.
Submit Article
Submit your writing—we curate and help publish it. If it is published, you have the opportunity to earn points/payouts according to the terms.
Comments
0Share your perspective politely, stay relevant, and focus on the article. Comments appear after moderation.
Join the discussion
Write a clear, polite response that stays on topic.
No comments yet. Be the first to discuss.
Comments will appear after moderation.