The Indonesian Government has issued a Regulation on the employment of foreign workers and the implementation of education and training programs for Indonesian companion employees. Presidential Regulation No. 72 of 2014 (Regulation No. 72), which came into effect in July, revokes Presidential Regulation No. 75 of 1995 regarding the Employment of Expatriates.
In principle, companies in Indonesia are allowed to employ foreign nationals with due consideration that there are no Indonesians with the necessary skills and/or knowledge for the position offered.
Companies employing foreign workers are required to appoint Indonesian nationals as understudy workers or trainees to work with the foreign employees for the purpose of training the Indonesians and transferring skills and knowledge. The education and training process for the Indonesian workers can take place in Indonesia or overseas and must be confirmed by a competency/training certificate.
These companies must also submit semester reports to the Ministry of Manpower and Transmigration (MOMT) outlining the following: a) information on currently employed foreign workers; and b) implementation of the mandatory education and training program for Indonesian trainees. The 1995 regulation did not require companies employing foreign workers to submit reports on the implementation of the mandatory education and training program.
National holidays and collective leave
Joint Decision of the Minister of Religious Affairs No. 5 of 2014, Minister of Manpower and Transmigration No. 03/SKB/MEN/V/2014 and Minister of State Apparatus Empowerment and Bureaucratic Reform No. 02/SKB/M.PAN/V/2014 (Joint Decision) stipulates 14 public holidays in 2015.
Collective leave is not mandatory. While government offices treat collective leave as mandatory and consequently reduce the annual leave entitlement of their employees, most offices in the private sector do not do the same. Indonesian manpower laws do not impose or recognize collective leave (i.e., forced leave) in the private sector but some companies encourage employees to take collective leave days. Note that taking such leave days must be voluntary.
Work and rest periods for upstream oil and gas workers
Employees who are responsible for planning, executing and/or controlling a company’s business activities and whose work hours cannot be limited according to the work hours stipulated in the company regulations or collective labor agreement shall not be entitled to overtime pay.
In the event of a dispute over the calculation of overtime pay, the party authorized to decide the matter is the regency/city manpower supervisor.