Client Alert: New Rules on Positions for Expatriate Workers in Indonesia
The Minister of Manpower has issued a decree containing a positive list of those positions that are open to expatriate workers in Indonesia. After intensive discussions among various foreign business chambers and the Ministry of Manpower and other government institutions since March of this year, Minister of Manpower (\"MOM‚Äù) Decree No. 228 of 2019 (\"MOM Decree 228‚Äù) was issued and became effective on August 27, 2019.
SSEK\'s Stephen Igor Warokka, a supervising partner in the firm\'s immigration law and work permit practice, was heavily involved in the process of helping to shape the contents of the decree. He met with various foreign business chambers in Jakarta to help coordinate their input on the draft decree, and met with the Ministry of Manpower, the Vice President\'s Office and the Coordinating Ministry for Maritime Affairs to discuss and help shape the draft decree and to raise the concerns of the business chambers and advocate on their behalf.
Highlights of New Decree
The highlights of MOM Decree 228 include the possibility of having an expatriate Commissioner or Director (non-HR) in all 18 business sectors listed in the decree, and the possibility that the MOM will approve positions that are not listed in the decree. Another important point is that the MOM will evaluate the list of positions open to expatriates at least every two years, or whenever necessary.
Work Permits (Izin Mempekerjakan Tenaga Kerja Asing) issued before the issuance of this new decree shall remain valid until their expiration. MOM Decree 228 revokes 19 MOM decrees that had regulated positions open to expatriates in 19 different business sectors, as well as any MOM decree that provides any positive list for expatriate manpower positions.
How MOM Decree 228 Works
MOM Decree 228 lists positions based on titles pursuant to the Indonesian Standard Job Title Classification (Klasifikasi Baku Jabatan Indonesia or \"KBJI‚Äù) issued by the Ministry of Manpower and the Statistics Center of Indonesia (Badan Pusat Statistik or \"BPS‚Äù), as well as the four-digit codes of the International Standard Classification of Occupations (ISCO). Save for Brand Ambassador in the Processing Industry and Flight Attendant in the Airfreight Industry, MOM Decree 228 mostly lists managerial, professional and technical/associate positions.
One of the main reasons for the issuance of MOM Decree 228 is to implement those provisions of the Indonesian Manpower Law (Law No. 13 of 2003) and MOM Regulation No. 10 of 2018 regarding Procedures for the Utilization of Expatriate Manpower (\"MOM Reg 10/2018‚Äù) that limit expatriate manpower to filling certain positions. The relevant provisions of the Manpower Law and MOM Reg 10/2018 required these certain positions for expatriates to be further stipulated in a ministerial decree.
For SSEK\'s English translation of the body of MOM Decree 228, please click here.
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