Foreigner employment in Indonesia

Indonesian Law Number 13/2003
Concerning Manpower

Foreigner employment in Indonesia

Article 42

1.Every employer employing expatriates shall secure a written license from the minister
   or the appointed official.
2. Individual employers shall be prohibited form employing expatriates.
3. The obligation to possess the license as meant in paragraph (1) shall not apply to
    foreign representative offices employing expatriates as diplomatic and consular
    employees.
4. Expatriates can be employed in Indonesia only inside working relations for certain
    positions and period.
5. Provisions on the certain positions and period as meant in paragraph (4) shall be
    stipulated by a decree of the minister.
6. The expatriates as meant in paragraph (4) having their working period expiring and
     un-extendable could be replaced by other expatriates.

Article 43

1. Employers employing expatriates shall have an expatriate assignment plan ratified by
    the minister or the appointed official.
2. The expatriate assignment plan as meant in paragraph (1) shall contain at least
     information about:

a.    Reason for employing expatriates;

b.    Position and/or status of expatriates in the organizational structure of the said
            companies;

c.    Period of assignment of expatriates;

      d.  Appointment of manpower being Indonesian citizens as counterpart of the
           employed expatriates.

3. The provision as meant in paragraph (1) shall not apply to government institutions,
     international agencies and representative offices of foreign countries.
4. The provision on procedures for ratification of the expatriates assignment plan shall
    be stipulated by a decree of the minister.

Article 44

1. Employers of expatriates shall abide by the provisions on positions and competence
    standards in force.
2. Provisions on the positions and competence standards as meant in paragraph (1)
    shall be regulated by a decree of the minister.


Article 45

1.    Employers of expatriates shall:

a. Appoint manpower being Indonesian citizens as counterpart of the employed
expatriates for the transfer of technology and expertise from the said expatriates;
and
b. Organize education and training for the Indonesian manpower as meant in letter
a according to the qualification of positions assumed by the expatriates

      2.The provision as meant in paragraph (1) shall not apply to expatriates assuming the
position of executive directors and/or commissioners.

Article 46

1. Expatriates shall be prohibited from assuming positions in charge of personnel affairs
and/or certain positions.
2. The certain positions as meant in paragraph (1) shall be regulated by a decree of the
minister.

Article 47

1. Employers shall pay compensation to every expatriate that they employ.
2. The obligation to pay the compensation as meant in paragraph (1) shall not apply to
government institutions, representative offices of foreign countries, international
agencies, social institutions, religious institutions and certain positions in educational
institutions.
3. Provisions on the certain positions in the educational institutions as meant in
paragraph (2) shall be regulated by a decree of the minister.
4. Provision on the amount of compensation and its allocation shall be regulated by a
government regulation.

Article 48
Employers employing expatriates shall return the expatriates to their countries of origin
after the working relations expire.

Article 49
Provisions on assignment or expatriates and the organization of education and training for
counterpart manpower shall be regulated by a presidential decree.

cheers,
rick