Indonesia – Amendments Made to Recent Regulations for Foreign Workers

What has changed

Effective October 23, 2015, the Ministry of Manpower has amended a few articles of the Manpower Regulation # 16, 2015 that went into effect June 29, 2015. These amendments are documented in the Manpower Regulation # 35, 2015.

The Manpower Regulation # 16, 2015 stipulated various stringent requirements for Indonesian companies looking to employ expatriates including but not limited to obtaining Work Permits for business meetings, training, etc and mandatory Work Permits for directors, even if they arrive on short visits and do not reside in Indonesia. Further, the regulations stipulated that the ratio of an expatriate to Indonesian employees must be 1:10 to facilitate the processing of a Work Permit application. The Manpower Regulation # 35, 2015 amends some of these stipulations.

Who is affected?
What to expect

  • All Indonesian companies that plan to hire expats or arrange business meetings, conferences, training, etc where the attendees may have to travel to Indonesia

Amendments documented in the Manpower Regulation # 35, 2015 are summarized as:

  • The ratio of an expat to Indonesian employee being 1:10 is no longer applicable.
  • A local company that has all Indonesian employees cannot hire an expat for the position of Commissioner
  • A Business Visa will suffice for the following and a Short Term/Temporary Work permit will not be required:
    • Provision of guidance, counselling, and training in the application of industrial and technological innovation to improve industrial product quality and design as well as overseas marketing cooperation for Indonesia’s interests
    • Giving lectures;
    • Attending meeting held by headquarters or representatives in Indonesia;
    • Expatriate  during probationary period;
    • Punctual completion of work;
    • Members of the Board of Directors, the Board of Commissioners or Trustees, Board members, members of the Supervisory residing abroad and arriving in Indonesia for business meetings

The Amendments as documented in the Manpower Regulation # 35, 2015 will help Indonesian companies save time and money spent in procuring the Work Permits for business activities and for non- resident directors/commissioners by procuring a Business Visa/Visa on Arrival as applicable. Further, the elimination of the expat: Indonesian employee ratio would enable the companies to hire expatriates as required; however final approvals still remain at the discretion of the Manpower officials.

What you need to do
Planning ahead

  • Emigra will continue to work closely with the Indonesian authorities to ensure smooth processing of the applications and communicate any updates in a timely manner.
  • Clients are requested to provide detailed information of a case to enable us to complete a thorough assessment and advise on the process to be followed.
  • Contact your Emigra Worldwide attorney or representative for further details on how these updates may impact you or your client.

The information above was provided by Emigra Worldwide, our global network partners, and relevant government authorities. The information herein is for general purposes only and not intended as advice for a particular matter. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work.