Consideration for being Expatriate in Indonesia: Employment

Berdasarkan survei yang dilakukan Expat Insider 2022 dijelaskan bahwa Indonesia menduduki peringkat kedua negara terbaik untuk ekspatriat setelah Meksiko menduduki posisi pertama. Hal ini dibuktikan berdasarkan informasi Kementerian Ketenagakerjaan (Kemenaker) bahwa jumlah Tenaga Kerja Asing (TKA) atau ekspatriat di Indonesia pada tahun 2022 mencapai 111.537 orang pekerja. Jumlah ini meningkat 26,36% dibandingkan tahun sebelumnya sebanyak 88.271 pekerja. Asal TKA ke Indonesia digolongkan sebagai berikut:

Negara Tenaga Kerja Asing 2022 Proyek Investasi dan Peringkat 2022
Cina 52.973 2.117 (4 th )
Jepang 11.152 4.220 ( 2 )
Korea Selatan 10.007 2.907 ( ke- 3 )
India 6.997 739 ( ke -12 )
Malaysia 4.431 1.551 (6 th )
Filipina 4.284 56 (36 th )
Amerika Serikat 2.174 1036 (9 th )
Australia 1.939 982 (10 th )
Britania Raya 1.893 908 (11 th )
Singapura 1.534 7960 ( pertama )
Yang lain 14.153 10.205
Total 111.537 32.681

 

Most of Foreign Workers to Indonesia were from China, Japan and South Korea.  It corresponded with investment from those countries that reach amongst the highest to Indonesia. According to Indonesia’s Central Bureau of Statistics record, these three countries along with Singapore are having the most direct investment in Indonesia by projects. Therefore, it is more likely to find jobs as a citizen of these countries compared to others because investment projects from these countries are quite abundant and give more opportunity for their citizens to work abroad. The list of countries by their direct investment projects in Indonesia for year 2023 is detailed in the attachment to show how much each country has investment projects in Indonesia and consideration for expatriates how much opportunity they could grasp in Indonesia provided by their respective country’s projects. Other than that, there are several multinational companies in Indonesia that might become consideration for expatriate to apply employment in Indonesia including:

Adidas McDonald’s HSBC Danone Mondelez L’Oreal Allianz
Asus Nestle Toyota KFC P&G Lotte Schnieder
Google Nike LG Oil Companies International Banks Consulting Companies So many more

Average income of Expats in Indonesia

In hiring foreign workers, there is no regulation regarding minimum wage for expatriates, it depends on the company that morally has to comply at least with the regional minimum wage in providing wage to expatriate/foreign worker. The regional minimum wage in Indonesia, some of it will be detailed in another article titled “Consideration for being Expatriate in Indonesia: Establish Business.

Although, if a business entity does not provide any record regarding wage on expatriate or foreign workers, Indonesian government as in Directorate of General Taxes has guidance for tax officers to determine the wage standard of expatriates to be calculated for taxation purpose only. It is stated in the Decision of The Director General of Taxes Number 173 of 2002 regarding Guidance of Foreign Worker Wage Standard that mention several wages according to Expatriate country of origin and level of position.  Therefore this guidance along with regional minimum wage might become reference for expatriate in bargaining for determine their wage from the employer. Below is the detailed of Decision of The Director General of Taxes Number 173 of 2002 (Per month in United States dollars rate May 2002):

 

Working Permit

Every employer who employs foreigners is required to obtain written permission from the Ministry of Manpower (Work Permit). The following is the procedure for obtaining a work permit in Indonesia:

The license is held by the sponsoring company:

  • Plans for Using Foreign Workers;
  • Telex Vitas; dan
  • Permit to Recruit Foreign Workers (Permit to Employ Foreign Workers).

Permits owned by employed foreigners:

  • Limited Stay Visa (Limited Stay Permit Card);
  • Multiple Exit/Re-Entry Permits (MERP);
  • Registration Letter (Report Certificate);
  • Certificate of Temporary Resident Registration;
  • Entry Permit (Immigrant Permit Card); And
  • Statement of arrival report (Arrival Report).

 

Data that must be provided by the sponsoring company at the beginning of the procedure includes: (1) the name of the sponsoring company, (2) the company’s business address, (3) the name of the person in charge of the company; (4) expatriate work; (5) expatriate job description; (6) Number of foreign workers; (7) Expatriate workplaces; (8) Expatriate working period; (9) Salary of foreign workers; (10) Get to work; (11) The number of Indonesian workers employed by the sponsoring company; (12) Appointment of Indonesian workers as assistants to foreigners; and (13) Indonesian workforce training program.

 

Special Skills or special professions recognized/required by Indonesia

Skills that must be owned by expatriates in Indonesia, among others:

  1. Digital literacy

Digital literacy is very important in the technological era. Digital literacy means knowledge and skills in the digital world. For example, things around basic technology such as communication programs, collaboration tools, and software such as Microsoft Office, as well as in terms of technology and software specific to specific devices.

The development of the digital world, more and more companies will adopt technology for various fields of work. Therefore, digital literacy is important to have in order to compete in the world of work. Digital literacy can be started by utilizing social media by following accounts that can add insight into today’s technology.

 

  1. Sales skills and how to influence customers

The digital world also influences how the marketing concept begins to change. One of them is the ability to introduce or sell products with ideas that are relevant to target customers.

  1. Data-driven decision-making

Companies are increasingly making decisions and creating strategies based on data. This can also be applied to each individual, to make decisions in work based on data.

Today, there are more sophisticated and more accessible data analytics tools, enabling almost any professional to use data to make informed decisions.

  1. Have a new point of view

Innovative thinking is needed in the world of work. In short, this kind of thinking always has a new perspective that can help companies become better. This kind of perspective is the foundation for change, progress, and new ways of dealing with old challenges.

  1. Relationship management

Relationship management means the skills of individuals to collaborate, teamwork, and ultimately be able to influence across different cultures, departments and demographics in any company and any team. The human aspect of relationship management will ensure that these skills remain essential as different types of digital transformation evolve. This ability can be trained by joining organizations, joining communities, expanding your network of friends, happy to have discussions, and so on.

 

TBrights is an integrated business service in Indonesia that will assist you to settle and grasp a lot of opportunities in Indonesia.

By Olina Rizki Arizal
Partner

 

Referensi:

https://flip.id/blog/keuntungan-kerja-sama-dengan-ekspatriat-di-indonesia

https://dataindonesia.id/sektor-riil/detail/jumlah-tenaga-kerja-asing-di-indonesia-melejit-2636-pada-2022

https://humas.amikompurwokerto.ac.id/4-hal-penting-tentang-izin-kerja-ekspatriat-indonesia/

https://www.linovhr.com/standar-gaji-tenaga-kerja-asing-di-indonesia/#/top

https://jogja.tribunnews.com/2018/10/15/indonesia-masuk-10-negara-terbaik-di-dunia-tujuan-para-ekspatriat

https://www.detik.com/edu/detikpedia/d-6465764/6-skill-yang-harus-dimiliki-untuk-pekerjaan-masa-depan-kamu-punya

https://lifepal.co.id/media/perusahan-multinasional/

https://www.idntimes.com/business/economy/khairul-ilham-1/20-daftar-perusahaan-multinasional-di-indonesia?page=all

https://nswi.bkpm.go.id/data_statistik

 

Attachments

Foreign Direct Investment to Indonesia in 2023 by Country’s Projects

2023 Projects
Singapura / Singapore 7.839
Jepang / Japan 3.890
Korea Selatan / South Korea 3.071
R.R. Tiongkok / People’s Republic of China 2.362
Hongkong, RRT / Hong Kong (SAR) 1.578
Malaysia / Malaysia 1.530
Belanda / Netherlands 1.384
Perancis / France 1.261
Australia / Australia 1.014
Amerika Serikat / United States of America 988
Rusia / Russia 849
Inggris / United Kingdom 832
India / India 727
Jerman / Germany 623
Taiwan / Taiwan 467
Kepulauan Virgin Inggris / British Virgin Islands 413
Italia / Italy 377
Swiss / Switzerland 340
Yaman / Yemen 329
Thailand / Thailand 247
Spanyol / Spain 228
Belgia / Belgium 215
Kepulauan Cayman / Cayman Island 206
Kanada / Canada 162
Selandia Baru / New Zealand 144
Luxembourg / Luxembourg 124
Uni Emirat Arab / United Arab Emirates 117
Swedia / Sweden 107
Pakistan / Pakistan 107
Ukraina / Ukraine 104
Saudi Arabia / Saudi Arabia 102
Denmark / Denmark 93
Mauritius / Mauritius 82
Samoa Barat / Western Samoa 77
Turki / Turkey 63
Seychelles / Seychelles 62
Polandia / Poland 59
Suriname / 56
Irlandia / Ireland 53
Ceko / Czech 53
Austria / Austria 52
Yordania / Jordan 50
Lithuania / 49
Rumania / Rumania 49
Philipina / The Philippines 48
Portugal / Portugal 44
Brasil / Brazil 42
Bermuda / Bermuda 38
Norwegia / Norway 36
Mesir / Egypt 36
Afrika Selatan / South Africa 35
Finlandia / Finland 29
Bulgaria / Bulgarium 23
Kepulauan Marshall / Marshall Islands 23
Chili / 23
Eswatini / Eswatini 22
Meksiko / Mexico 21
Hungaria / Hungary 20
Samoa Amerika / American Samoa 20
Lebanon / Lebanon 20
Slovakia / Slovakia 19
Vietnam  / Vietnam 16
Siprus / Cyprus 15
Estonia / 13
Argentina / Argentina 13
Yunani / Greece 12
Anguilla / 12
Liberia / Liberia 12
Maroko / Marocco 11
Bangladesh / Bangladesh 10
Irak / Irak 10
Sudan / Sudan 10
Slovenia / Slovenia 9
Latvia / 9
Belarusia / 8
Iran / Iran 8
Palestina / Palestine 8
Brunei Darussalam / Brunei Darrussalam 8
Kuwait / Kuwait 8
Gibraltar / Gibraltar 7
Armenia / 6
Kepulauan Cook / Cook Islands 6
Bahama / Bahamas 6
Qatar / Qatar 6
Moldova / Moldova 5
Peru / 5
Kolumbia / 5
Panama / Panama 5
Aljazair / Algeria 5
Sri Lanka / Sri Lanka 4
Tunisia / 4
Namibia / Namibia 4
Islandia / Iceland 3
Malta / 3
Serbia / Republic of Serbia 3
Bosnia dan Herzegovina / 3
Suriah / Syria 3
Afghanistan / Afghanistan 3
Libya / Libya 3
Jamaica / 2
Makao / Macau 2
Maladewa / 2
Bahrain / Bahrain 2
Senegal / 2
Kenya / Kenya 2
Monaco / 1
Albania / 1
Kroasia / 1
Costa Rica / Costa Rica 1
Belize / 1
Venezuela / 1
Dominika / Dominica 1
Kazakhstan / Kazakhstan 1
Nepal / Nepal 1
Uzbekistan / 1
Nigeria / Nigeria 1
Siera Leone / Siera Leone 1
Zimbabwe / 1

 

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