Implementation of New Manpower Regulation Regarding Procedures for Use

On June 29, 2015 the Minister of Manpower of Repulbic of Indonesia issued a new regulation number 16 Year 2015 Regarding Procedures for Employment of Foreign Labour in indonesia (PERATURAN MENTERI KETENAGAKERJAAN REPUBLIK INDONESIA NOMOR 16 TAHUN 20I5 TENTANG TATA CARA PENGGUNAAN TENAGA KERJA ASING). This new regulation eliminated the regulation number 12 year 2013 by Minister of Manpower and Transmigration of Republic of Indonesia regarding Procedures for Employment of foreign labour in Indonesia.

The key aspects of the new regulation are as follows:

1. The new regulation increased the restrictions on activities which normally can be carried out by Business Visa and Visa on Arrival. Now the Temporary Work Permit is required to carry out the following activities:
   a. provide guidance, counseling, and training in the area of industrial and technological innovations.
   b. Commercial film making which is authorized by concerned Indonesian authorities.
   c. Giving lectures
   d. Attending a meeting with Company Headquaters or Comapny Representative Office.
   e. conduct audits, production quality control, or inspection at the company’s branch in Indonesia.
   f. Internship in Indonesia
   g. work related to the installation of mechanical and electrical instruments, after-sales services, product market exploration etc.

2. In accordance with new regulation some additional documents are required by Expatriate to complete the Work Permit application. The documents are listed below:
   a. A certificate of competence or Work experience related to the Jobtitle which will be occupied by expatriate
   b. Tax ID for expatriates working in Indonesia for 6 months or more
   c. An insurance policy from Insurance Company which is incorporated under Indonesian Law.
   d. Membership of the National Social Security Program for expatriates working in Indonesia for 6 months or more

3. All Non resident Directors and Commissioners of Foreign Investment Companies (PMA) are required to have Work Permit now wether they are staying/working in Indonesia or not. That include payment of the Worker Levy of USD 100 per month.

4. The quota to hire expatriate by Indonesian Employers is now changed to 1 expatriate to atleast 10 Indonesian employees. However this quota is not applicable for:
   a. Directors and Commisioners of Foreign Invested Companies.
   b. Patrons, the Management and the Supervisors of a Foundation (Yayasan)
   c. job that is “an emergency and urgent” in nature
   d. temporary jobtitles
   e. impresario services (entertainment services e.g. temporarily bringing in or sending back foreign workers in the     field of arts and sports)

5. Work Permit recommendation of 6 month only is being given to:
   a. expatriates hired by the companies with Line of Business of Services, Trading and Consulting
   b. expatriates hired for Mechanical and Electrical Installations and Maintenance
   c. expatriates with High School or Vocational qualifications

Source: AJ Consultants