Ministry of Energy and Mineral Resources Revokes Recommendation on the Use of Foreign Workers to Boost Investment

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 16 Maret 2018
Category: News
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Dissemination of Regulatory Simplification in the Ministry of Energy and Mineral Resources

Dissemination of Regulatory Simplification in the Ministry of Energy and Mineral Resources

In order to boost investment in oil and gas sector, Ministry of Energy and Mineral Resources (ESDM) has revoked 11 regulations and simplified 7 regulations in oil and gas subsector.

Director of Oil and Gas Development Program of the Ministry of Energy and Mineral Resources, Budiyanto, revealed that one of the revoked regulations is Minister of Energy and Mineral Resources Regulation No. 31 of 2013 on Provisions and Procedures for the Use of Foreign Workers and the Development of Indonesian Migrant Workers in Oil and Gas Business Activities.

“With this revocation, Directorate General of Oil and Gas no longer publishes recommendation of the Foreign Worker Use Plan (RPTKA) and Permit for Foreign Workers (IMTA),” Budiyanto said in Jakarta on Thursday (15/3).

Budiyanto explained that the revocation of Ministerial Regulation No. 31 of 2013 is not intended to make oil and gas subsector in Indonesia flooded with foreign workers (TKA), but to shorten the process so it is no longer complicated.

“If we want more investment, then we must be ready for the labors that follow. What we should understand is, will we really flooded by foreign workers if we revoke the Minister of Energy and Mineral Resources Regulation No. 31/2013? The answer is it will not. Actually, the Government’s expectation by revoking the regulation is to simplify the process,” Budi said.

“With the revocation of this Ministerial Regulation, the permit procedure for foreign workers becomes easier and faster, that will increase investment attractiveness in oil and gas subsector. Now business actors in the oil and gas sector can apply the permit directly to the Ministry of Manpower,” Budi continued.

Budi also said that in the future, the regulation related to foreign workers in Indonesia will be regulated in Presidential Regulation, which is currently being discussed under the coordination of Ministry of Manpower.

While waiting for the new regulation, the team of Directorate General of Oil and Gas, Oil and Gas Special Task Force (SKK), and the Ministry of Manpower, work together in the issuance of permit for foreign workers in oil and gas subsector. “At this time, management of RPTKA and IMTA will be handled by Directorate General of Oil and Gas, coordinating with the Ministry of Manpower,” Budi added.

Therefore, Business Entity can apply directly to the Ministry of Manpower.There will be an adhoc team to manage this.” Later, in a short period of time, Directorate General of Oil and Gas and Oil and Gas Special Task Force will be there and (the permit) can be issued directly there. This team is temporary,”explained Budi.

In addition, the evaluation process for the issuance of RPTKA and IMTA is carried out through a one-stop integrated service under the coordination of the Ministry of Manpower. “With this system, the process for issuing permit for foreign workers becomes easier and faster. The supervision of foreign workers is also integrated through an online system,” he concluded. (Public Relations of Ministry of ESDM/ES) (STU/MMB/Naster)

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