Here we go again. Another new set of regulations for foreigners working in Indonesia, a country where the President claims is investment friendly and ready to do business with the outside world.

This update comes from Hadiputranto, Hadinoto and Partners.

New Ministry of Employment Regulation on Foreign Workers

On 29 June 2015 the Minister of Employment issued Regulation No. 16 of 2015 on the Procedure for the Utilization of Foreign Manpower (“Regulation 16”). Regulation 16 replaces the previous Regulation No. 12 of 2013 on the same matter.

Regulation 16

Regulation 16 governs the procedures for the use of foreign workers by employers in Indonesia, e.g., the procedure for an employer to obtain foreign manpower utilization plans (RPTKA) and work permits (IMTA) for foreigners to work in Indonesia.

Two new matters of importance regulated under Regulation 16 are:

  1. a requirement for non-resident directors and commissioners to obtain a work permit; and
  2. Indonesian to foreigner ratio requirements.

Regulation 16 also expands the type of work that can be conducted under a “temporary” work permit.

Work Permits – Non-Resident Directors and Commissioners

Article 37(2) of Regulation 16 refers to “foreign workers” who hold the position of:

  • director of an Indonesian company
  • commissioner of an Indonesian company
  • member of the Patrons, the Management and the Supervisors of a Foundation (Yayasan) and are “domiciled abroad” having to obtain a work permit sponsored by the relevant Indonesian entity. 

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