Residence Permit Transition: A Literature Analysis on Challenges and Implementation in Indonesia

Abstract

Indonesia's transitional residence permit, introduced through Ministerial Regulation No. 11 of 2024, aims to offer flexibility for foreign nationals to switch between residence permit statuses without leaving the country. Despite its potential, the implementation faces numerous challenges, including administrative inefficiencies, unclear status transitions, and rising permit violations. In 2024, Denpasar alone reported 138 cases, up from 104 in 2023, indicating weaknesses in policy enforcement. This study aims to analyze Indonesia's transitional residence permit system by comparing it with models in the United States and Switzerland, which use sponsorship-based and economic contribution-based systems respectively. Employing a Systematic Literature Study (SLS) method, this research reviews current policies, academic publications, and government regulations to evaluate administrative effectiveness, legal certainty, and enforcement mechanisms. The findings highlight Indonesia's limited permit duration (60 days), lack of integrated sponsorship or economic evaluation systems, and absence of employment flexibility during the transitional period. In contrast, the U.S. allows applicants to stay during status processing through a robust sponsorship framework, while Switzerland’s permits are granted based on quantifiable economic contributions. This comparative analysis reveals the urgent need for policy reform in Indonesia, emphasizing administrative integration, sponsor verification, and the incorporation of an economic or skill-based evaluation system. These improvements are expected to reduce immigration violations, improve labor market management, and align Indonesia’s immigration policy with international standards.