Indonesia Basic Information : Foreign Workers

FOREIGN WORKERS

foreigners are allowed to hold positions where Indonesian nationals are not available or do not meet the requirements to do the job and subject to the conditions that such positions are open for foreigners. Foreigners can be employed in Indonesia only for certain positions and period.

Employers of foreign workers in this shall include:

1.Government body(s).

2.International body(s).

3.Representatives of foreign country.

4.International organization.

5.Foreign Company Representative Office (KPPA), Foreign Company Trade Representative Office (KP3A), Foreign Press Office.

6.Foreign private company, foreign business entity.

7.Legal Entity established under the Indonesian Law in form of Ltd. (PT) or foreign private organisation.

8.Social institute and other institute for religious, education, or cultural purpose.

9.Impresario service entity.

Employers of foreign labor can only employ foreign workers in an employment relationship for a certain position and a certain time. Employers of foreign labor in the form of Federal Civil Firm (Firma/ Fa), the Limited/ Federal Partnership (CV), Associated Business (Usaha Bersama or UB), Trading Company (Usaha Dagang or UD) prohibited from employing foreign labor except as provided in the State Law.

For all FDI, a foreigner could hold position as a member of:

1.Board of Director (BOD).

2.Board of Commissioner (BOC).

3.Builder Members.

4.Board Members.

5.Supervisory.

Except for DDI, a foreigner cannot hold a position as a member of Board of Commissioner. According to the Attachment of Manpower Decree No. 40 of 2012, foreigner cannot hold a position as:

1.Personnel Director.

2.Industrial Relation Manager.

3.Human Resource Manager.

4.Personnel Development Supervisor.

5.Personnel Recruitment Supervisor.

6.Personnel Placement Supervisor.

7.Employee Career Development Supervisor.

8.Personnel Declare Administrator.

9.Chief Executive Officer.

10.Personnel and Careers Specialist.

11.Personnel Specialist.

12.Career Advisor.

13.Job Advisor.

14.Job Advisor and Counseling.

15.Employee Mediator.

16.Job Training Administrator.

17.Job Interviewer.

18.Job Analyst.

19.Occupational Safety Specialist.

Can foreign worker/ foreigner hold multiple jobs in Indonesia?

According to the Article 42 paragraph (4) and (5) of Law of the Republic of Indonesia No. 13 of 2003 pertaining to Employment, foreign labor can only be employed in Indonesia for a stipulated position and department.

As a follow up to the above regulation, Ministerial Decree of Manpower No.16 of 2015 article 41 concerning Procedures for Licensing Hiring Foreign Workers stipulate, that the employer (sponsor) of foreign labor is prohibited to hold more than 1 job position or department.

Additionally, employer or sponsor of foreign labor is prohibited from employing foreign labor that has already been employed by other employer, unless the foreign labor is appointed as Director or Commissioner in other company as stated in its General Meeting of Shareholders.

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