Job Availability and Restrictions for Workers of Foreign Citizenships in Indonesia

A Brief Explanation about The The New Regulation of The Use of Foreign Workers In Indonesia

This is a short explanation of the new regulations regarding the use of foreign workers in Indonesia.

As one of the countries with the largest economic commodities in Asia, Indonesia provides companies with the opportunity to employ foreign workers. This is considered an effort to increase competitiveness in the domestic job market and support long-term economic growth.

Despite the frequent protest, in fact, the use of foreign workers in Indonesia is increasingly popular over time. To maintain the stability of the job market, the government has made some regulations on the use of foreign workers in Indonesia through labor laws, ministerial regulations, and presidential regulations.

The New Regulation of The Use of Foreign Workers in Indonesia

As we know, the law is a social product whose content is always tailored to public needs. Therefore, the legal regulations concerning the use of foreign workers are often revised to provide convenience and justice for both companies and the public.

President Joko Widodo has approved the newest regulations on the use of foreign workers in Indonesia in April 2018. This new regulation is contained in The Presidential Regulation (Perpres) No. 20 of 2018.

Some new regulations that you must look at in the Perpres are:

Prioritizing Domestic Workers

The use of foreign workers by employers or companies must be carried out by considering the conditions of the domestic labor market. Companies that want to use foreign workers are also obliged to prioritize the use of domestic workers in all lines of work.

 

In other words, foreign workers can only occupy positions that cannot be occupied by domestic workers only. Furthermore, the foreign workers are also prohibited from occupying positions in charge of personnel or certain positions determined by the ministerial regulations.

Regulation on Dual (or multiple) Positions for The Foreign Workers

According to presidential regulations, employers in certain sectors can employ foreign workers who are employed by other employers in the same position. This right will hold until the expiration of the employment period of foreign workers with the first employer.

The types of positions, sectors, and procedures for using foreign workers, in this case, are further regulated by The Ministerial Regulations.

Regulation on The Plan for The Use of Foreign Workers (RPTKA)

Each Employer who uses foreign workers must have the RPTKA (The Plan for The Use of Foreign Workers) that is authorized by the Minister or appointed official, this document (at least) contains:

  • Reasons for using foreign workers
  • The position of the foreign workers in the organizational structure of the company
  • The period of the use of foreign worker
  • Appointment of Indonesian workers as assistants for the foreign workers employed.

However, the foreign worker employers are not required to have RPTKA to employ the foreign workers which are:

  • Shareholders or members of the Board of Directors or members of the Board of Commissioners of the company
  • Diplomatic and consular employees representing foreign countries
  • Foreign workers needed by the government

Closure

From the explanation above, you can see that the new regulations regarding the use of foreign workers in Indonesia are very easy to understand.

Lastly, to understand more about this regulation, you can analyze The Presidential Regulation (Perpres) No. 20 of 2018 through a trusted legal entity to get a thorough understanding. Good luck.

Related: Guide For Foreign Worker in Indonesia

How Smart ID can help you?
Smart Indonesia is a company that has focus on providing legal solution for expatriates, foreigners, and mixed marriage couples in Indonesia.

 

Contact Us:
Email: info@elson.co.id
Phone: 081932741333

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