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The Opposite of Progress is Congress

Denpasar Still Unable to Collect Foreign Workers Training Fee Due to Inaction by Lawmakers

(12/8/2013) The plan by the Social Service and Manpower Department for Bali’s capital of Denpasar (Dinsosnaker) to start charging foreign workers a US$100 per month training fee (IMTA) beginning in January 2013 is threatened by further delay.

Draft legislation that would allow the fee once paid to Jakarta to be now paid to the regional administration has yet to be ratified. For this reason, Dinsosnaker is calling on legislators to formally approve the legislation that has already been discussed and reviewed at length by lawmakers.

The head of Dinsosnaker-Denpasar, I Made Erwin Suryadarma Sena, said on Tuesday, December 3, 2013, the threat of being unable to start charging the foreign workers training fee in January remains very real as there is no legal basis to charge the fee without supporting legislation.

Erwin said that in 2011-2012 between 200-300 foreign workers held formal working permits. This would equate to US$360,000 in annual training fees paid to the Denpasar government once the necessary legislation is enacted.

The right to decentralize the US$100 a month fee from Jakarta to regional collection was granted in Government Regulation (PP No. 97) of 2012.

Regional governments have been entitled to collect this amount since January 2013, but because of a failure to enact empowering local regulations the fee remains uncollected.

The IMTA fee is purportedly to be used to fund skill training for Indonesian workers.

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