11 September, 2019
After taking into account input and comments from various businesses in Indonesia, on 27 August the Minister of Employment issued Regulation No. 228 of 2019 on Certain Titles Open for Foreign Workers ("Decree 228"). Decree 228 replaces 19 decrees of the Minister of Employment on the titles that foreign workers can hold in different categories of business/industry in Indonesia.
Key Items under Decree 228
Other than including an attachment on titles or positions that are open for foreigners working in Indonesia, the following points in Decree 228 are important to note:
- Positions of directors and commissioners who are not managing personnel are open for foreigners as long as the appointment of the foreign directors and commissioners does not contradict the prevailing laws and regulations. In other words, generally foreigners can still hold positions of directors or commissioners of an Indonesian company.
- The Minister of Employment (or a specifically designated official of the MOE) has the discretion to approve work permits for foreign workers intending to hold titles or positions that are not listed in the attachment of Decree 228. Previously, the Minister of Employment could still approve work permit applications for a foreign worker if the proposed title/position was not specifically mentioned as open for foreign workers. However, the approval required a recommendation from the relevant technical ministry. Decree 228 no longer refers to this requirement.
- Titles or positions open for foreign workers and the title/position requirements will be evaluated every two years, or whenever considered necessary. However, Decree 228 does not specify conditions that will make an evaluation necessary outside the regular schedule.
- Work permits issued before 27 August 2019 (i.e., the date Decree 228 becomes effective) will continue to remain valid until their expiry.
For further information, please contact:
Timur Sukirno, Partner, Baker & McKenzie
timur.sukirno@bakermckenzie.com
