Indonesia

Overview

The Ministry of Manpower recently issued Decree of the Minister of Manpower No. 228 of 2019 on Certain Positions Permissible for Foreign Employees (“Decree 28/2019”) which came into effect on 27 August 2019, and revoked previous relevant Decrees of the Minister of Manpower regarding positions permissible for foreign employees and provides a list of positions in various business fields that foreign employees can be employed in attached to its appendix, which will be evaluated every two years or when needed.

Decree 28/2019 is simply a codified decrees of the Minister of Manpower related to the positions that foreign employees may be employed in. According to the list of positions, foreigners can be employed in most positions other than those related to human resources or personnel. If the position a foreign employee is to fill is not listed in the appendix to Decree 28/2019, the Minister or an appointed authority can grant permission to employ the foreign employee in that position.

In addition to a list of positions, the appendix to Decree 28/2019 provides the following list of business areas that foreigners may be employed in:

  • construction;
  • real estate;
  • education;
  • manufacturing industries;
  • water management, waste water management, waste management and recycling, and waste remediation activities;
  • transportation and logistics;
  • art, entertainment, and recreation;
  • providing accommodation, food and beverages;
  • agriculture, forestry, fisheries;
  • leasing and operational leasing, manpower, travel agencies, and other support businesses;
  • finance and insurance;
  • human health and social activities;
  • information and telecommunications;
  • mining and excavating;
  • the procurement of power, gas, steam/hot water and cold air;
  • the wholesaling and retailing, repair and maintenance of cars and motorcycles;
  • other service businesses;
  • technical, scientific, and professional activities.

Work permits granted before the regulation was issued will remain valid until their expiration date.

*****

M&T Advisory is an email publication prepared by the Indonesian law firm, Makarim & Taira S. It is only intended to inform generally on the topics covered and should not be treated as a legal advice or relied upon when making investment or business decisions. Should you have any questions on any matter contained in M&T Advisory, or other comments generally, please contact your usual M&T contact or advisories@makarim.com.

Contacts:

Lia Alizia – lia.alizia@makarim.com
Golden Mandala – golden.mandala@makarim.com

Related Articles by Firm
Domestic non-deliverable forwards under Indonesian law
It is hoped that DNDF transactions in the market will provide confidence to business actors regarding owning assets in rupiah.
Indonesia: The Omnibus Law on Job Creation
What the bill has to offer ...
Indonesia: New regulation on the procurement of goods and services in the state-owned enterprises sector
On 12 December 2019, the new Minister of State-Owned Enterprises, Erick Thohir, issued new Ministry of State Owned Enterprises Regulation ...
Indonesian government simplifies outsourcing requirements
But users and providers still need to be aware of their restrictive and far-reaching breadth and scope.
Regulation on integrated mortgage services through electronic systems
The service aims to improve disclosure, punctuality, simplicity and affordability.
New Indonesian franchise regulation relaxes certain requirements
The new regulation aims to simplify the registration process and facilitate investment.
New amendment to Indonesia’s KPK Law
The main purpose of the amendments is to change the corruption eradication paradigm from prosecution measure to prevention measure.
Aircraft finance and leasing in Indonesia
The Indonesian aviation sector has grown rapidly over the past few years. Due to this, airlines and lessors have been capitalising on the general availability of diverse sources of funding ...
New KPPU regulation on merger filings
Simplification yet some clarity is needed.
Reminder – Requirement in the OSS System for companies to adjust their Business Classification Code
This joint notice requires limited liability companies to adjust their purpose and objectives.
Requirement to use the Indonesian language is regulated further
Indonesia has finally issued an implementing regulation of the Language Law.
BKPM amends its regulation on the procedures for licence and investment facilities
Divestment and foreign directors and commissioners’ requirements.
Indonesia's new regulation on e-litigation
The Supreme Court aims to have e-litigation operating in all courts of first instance by early 2020.
Latest amendment to the procedure for the resolution of small claims lawsuit
The new procedure provides more optimal and effective regulation than the previous regulation.
New government regulation on organisation of electronic systems and transactions
The Government of Indonesia finally issued Government Regulation No. 71 of 2019 on Organisation of Electronic Systems and Transactions on 4 October 2019, gaining momentum as the country sees the rise of ‘unicorns’ and President Joko Widodo boasting about the country’s digital economy ...
Regulating the sale and provision of digital content through mobile cellular networks
Regulations on digital content are becoming more relevant as investor interest in the Indonesian market rises.
Joko Widodo re-elected: How will it affect doing business in Indonesia?
In his election campaign, Jokowi declared nine missions ...
Indonesia: New regulation on Foreign Construction Representative Offices and Construction Foreign Investment Companies
On 13 June 2019, the Minister of Public Works and Public Housing issued Regulation No. 09/PRT/M/2019 on Guidelines on Licensing Services for Foreign Construction Business Entities ...
Settlement of disharmony between laws and regulations through mediation
On February 12, 2019, the Minister of Laws and Human Rights (MOLHR) issued Regulation No. 2 of 2019 on The Settlement of Disharmony between Laws and Regulations through Mediation (MOLHR Reg 2/2019), which came into effect on February 14, 2019 ...
Bank Indonesia issues a new regulation on the reporting of foreign exchange flows
Bank Indonesia (BI) recently issued Regulation No. 21/2/PBI/2019 on the Reporting of Foreign Exchange Flow Activities ...
Related Articles
Covering Ears to Steal Bells: Ignoring insolvency at risk of liquidation
The closest Chinese equivalent to the English idiom of ‘sticking one’s head in the sand’ is ‘covering one’s ears to steal bells’ ...
JV Compliance Issues during the Transition Period under the new FIL
On 1 January 2020, the Foreign Investment Law of the People’s Republic of China came into force ...
Related Articles by Jurisdiction
Latest amendment to the procedure for the resolution of small claims lawsuit
The new procedure provides more optimal and effective regulation than the previous regulation.
Latest Articles
Watch again: “Is Covid-19 taking women lawyers’ careers back to the 1950s?”
A second chance to watch….. the opening Women In Law Dialogue Series Webinars: Asia and North America time-friendly (first aired ‘live’ in August 2020) ...
Covering Ears to Steal Bells: Ignoring insolvency at risk of liquidation
The closest Chinese equivalent to the English idiom of ‘sticking one’s head in the sand’ is ‘covering one’s ears to steal bells’ ...