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HomeNew decree on foreign workers in Indonesia

New decree on foreign workers in 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.

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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