Compliance Check: Indonesia – New Rules for Foreign Workers

Indonesia’s Ministry of Manpower (“MOM”) has issued a new regulation, MOM Regulation No. 10 of 2018 on Procedures for the Utilisation of Foreign Workers (“Reg 10/2018”), which implements President Regulation No. 20 of 2018 on Expatriate Utilisation (“PR 20/2018”). Employers employing expatriates working in Indonesia should be mindful of the additional obligations introduced through Reg 10/2018. For further details, you can read our update here.

How does an employer apply for an expatriate work permit?

Applications for expatriate work permits are to be submitted via an Online Single Submissions (“OSS”) which is coordinated by all relevant ministries.

Are there any new obligations on employers?

Employers are now required to arrange Indonesian language training for expatriates. Reg 10/2018 does not, however, provide further guidance on what type of language training or certification must be obtained by the expatriate. However, this requirement does not apply to expatriates who hold a director or commissioner position, or those intending to undertake immediate and urgent work in Indonesia.

Employers must also register expatriates intending to work in Indonesia for no more than six months under an insurance programme managed by an Indonesian insurance company. For expatriates intending to work for more than six months in Indonesia, employers must enrol them in both the Manpower BPJS and Health BPJS programs.

What should employers do?

Employers employing expatriates to work in Indonesia should ensure that they comply with the new rules implemented by Indonesia’s MOM. Herbert Smith Freehills can help companies to assess the position and consider options to ensure compliance. To discuss how, please contact fatim.jumabhoy@hsf.com

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Filed under International mobility (including secondments, migrant workers, territorial jurisdiction), Jurisdiction: Asia

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