Work Permit Revenue ‘Goes Missing’

DENPASAR ~ Concerns were raised in the Badung legislature this week that the regency is missing out on revenue from work permits because no one knows how many foreigners are employed in Badung.

A top legislator says the local employment department does not report the number of foreign workers and also that many foreigners work illegally while holding only visitor visas.

Chairman of the regency DPRD Commission 1, which oversees financial matters, I Gede Adnyana, said that under foreign worker rules the central government was supposed to return to Badung and the regencies of Bangli and Gianyar Rp1 million (US$100) per worker per year.

But the amount of money returned is unknown, Adnyana says, and the number of foreign workers is also not reported.

“The Executive does not have to report this data to us,” he said.

“We suspect that many working foreigners do not have work visas. They just use a visitor visa. This is a potentially large loss of revenue.”

Adnanya said many companies in Badung regency, such as hotels, employed foreigners, especially in strategic positions.

“We do not want to lose the income. We want the data relating to foreign workers to be provided.”

Under foreign worker rules, non-nationals are supposed to be employed only as technical advisers in senior positions for the purpose of training an Indonesian citizen for the position. Jobs defined as strategic are specifically excluded.

Labour Law 13 of 2003 provides that annual work permits can only be renewed twice. In the third year an Indonesian national must be appointed to the fulltime position.

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