Indonesia: further Labour Law changes

Ministry of Manpower Regulation No. 8/2021 issued in March this year, is an implementing regulation with regard to the employment of foreign workers in Indonesia. It is the implementing regulation for Government Regulation 34/2021.

To re-cap, for those of us who may be familiar with Indonesian labour law, an employer wishing to employ a foreign worker is required to submit a manpower utilization plan to the relevant authority. In Indonesia, the utilization plan is referred to by the acronym RPTKA (for Rencana Penggunaan Tenaga Kerja Warga Negara Asing, or in other words, plan for the utilization of foreign ‘labour’). The RPTKA is a legal requirement for the issuing of visas and resident permits for foreign employees.

One of the key provisions in Regulation No. 8/2021 relates to circumstances in which an RPTKA is not required, and that is what I would like to share with my readers, below.

An RPTKA is not required for the following types or categories of foreign worker:

  • directors or commissioners who have a specified share ownership in the relevant employer
  • diplomatic or consular officers working for embassies or consulates in Indonesia
  • foreign workers employed with respect to certain activities which were suspended due to emergencies (perhaps this would include the current pandemic)
  • vocational and technology-based start-ups
  • business visits
  • research for limited periods only
  • an RPTKA is also not required for foreign workers in technology-based start-ups or vocational business activities where the activity or work in question lasts for no more than three months (if the duration of appointment is longer, then an RPTKA is needed after all)

This post is for information purposes only. It is not intended to comprise legal advice, or as a substitute therefor. For legal advice on this and other commercial matters in Indonesia, please contact the author

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