2 February, 2016
Presidential Regulation No. 104 of 2015, dated September 23, 2015, regarding the Amendment of Presidential Regulation No. 69 of 2015 regarding Visit Visa Exemption. This amendment primarily increases the list of states that are granted a visa exemption for its nationals to enter Indonesia for holiday. This Regulation came into effect on the date of its enactment.
Minister of Industry Regulation No. 73/M-IND/PER/9/2015, dated September 22, 2015, regarding the Second Amendment of Minister of Industry Regulation No. 34/M-IND/PER/3/2015 regarding the Four-Wheeled or More Motor Vehicle Industry and Motorcycle Industry. This Regulation amends the effective date of Minister of Industry Regulation No. 34/M-IND/PER/3/2015, which is now March 23, 2016. Minister of Industry Regulation No. 34/M-IND/PER/3/2015 serves as a guideline for business entities manufacturing motor vehicles and motorcycles. This Regulation came into effect on the date of its enactment.
Government Regulation No. 78 of 2015, dated October 23, 2015, regarding Wages. This Regulation implements Article 97 of Law No. 13 of 2003 regarding Manpower and aims to establish rules on workers’ wages. Article 3(1) of the Regulation generally sets out that wages must enable workers to have decent lives. This Regulation also contains provisions on wage policy, salary standards, wage payment mechanisms, wage reviews, and provincial minimum wages. Minimum wages in each province shall be determined by the relevant governor according to a fixed formula in Article 44 of the Regulation. Provinces have four years as of the enactment of this Regulation to adjust provincial minimum wages to meet the standard of reasonable living. Employers are obliged to arrange and implement wage structures and scales pursuant to this Regulation at the latest two years as of the enactment of this Regulation. This Regulation revokes Government Regulation No. 8 of 1981 regarding Wage Protection. It came into effect on the date of its enactment.
Minister of Manpower and Transmigration (“MOMT”) Regulation No. 27 of 2015, dated October 15, 2015, regarding Work and Break Hours in the Horticulture Sector. This Regulation stipulates work hour/break period rules that horticulture companies may apply according to their operational needs. Horticulture companies shall include their work hours/break periods in their work agreements, company regulations or collective labor agreement. This Regulation came into effect on the date of its enactment.
MOMT Regulation No. 33 of 2015, dated October 20, 2015, regarding the Amendment of MOMT Regulation No. 12 of 2015 regarding Electricity Work Safety and Health at Workplaces. This amendment deletes provisions on the testing of electrical equipment and tools by the Manpower Supervisor. This Regulation came into effect on the date of its enactment.
MOMT Regulation No. 35 of 2015, dated October 23, 2015, regarding the Amendment of MOMT Regulation No. 16 of 2015 regarding Procedures for the Utilization of Expatriate Manpower. This Regulation amends several controversial provisions under the previous regulation, namely: (i) eliminating the 1:10 ratio for hiring expatriates; (ii) eliminating certain work permit requirements for non-resident directors and commissioners of Indonesian companies and non-resident patrons, management and supervisors of Indonesian foundations; and (iii) reducing the requirement for a temporary work permit to several activities that are stipulated under this Regulation. It also introduces several new provisions not governed under MOMT Regulation 16 of 2015 including the prohibition for a domestic investment company to have a foreign commissioner. This Regulation came into effect on the date of its enactment.
Governor of DKI Jakarta (“GOJ”) Regulation No. 230 of 2015, dated October 30, 2015, regarding the Provincial Minimum Wage for 2016. The provincial minimum wage for DKI Jakarta for 2016 is set at IDR 3.1 million per month. Employers are prohibited to pay workers less than the stipulated minimum wage unless they request and receive a suspension of the implementation of minimum wage by submitting a written application to the GOJ no later than 10 days before the effective date of the minimum wage, subject to the technical criteria and requirements as set out in GOJ Regulation No. 42 of 2007 regarding the Procedure for the Suspension of the Implementation of Provincial Minimum Wage. This Regulation came into effect on the date of its enactment, while the new minimum wage is effective beginning January 1, 2016.
For further information, please contact:
Dyah Soewito, Partner, Soewito Suhardiman Eddymurthy Kardono
dyahsoewito@ssek.com
