22 November, 2015
The Minister of Manpower (“MOM”) has just issued an amendment to MOM Regulation No. 16 of 2015 regarding the Procedure for the Utilization of Expatriate Manpower (“MOM Reg 16/2015″) under MOM Regulation No. 35 of 2015 regarding Amendment of MOM Reg 16/2015, dated October 23, 2015 (“MOM Reg 35/2015″).
MOM Reg 16/2015 required (i) employment of 10 local workers for every expatriate employee, (ii) work permits for non-resident Directors and Commissioners of Indonesian companies, and for non-resident Patrons, Management and Supervisors of Indonesian foundations, and (iii) a temporary work permit for expatriates visiting Indonesia to attend certain “meetings” which is customarily covered by a visit visa.
As a result of lobbying by various parties including international Chambers of Commerce, the new MOM Reg 35/2015 amends the controversial MOM Reg 16/2015, by:
- eliminating the 1:10 ratio for hiring expatriates;
- reducing the requirement for a temporary work permit to the following three activities, which no longer includes “attending meetings”: (i) making commercial films that are otherwise authorized, (ii) performing audits, production quality control, or inspections of an affiliate in Indonesia for more than 1 month, and (iii) performing work related to the installation of machinery, electrical, after-sales service, or products in the business trial phase; and
- eliminating work permits for non-resident Directors and Commissioners of Indonesian companies, and non-resident Patrons,
- Management and Supervisors of Indonesian foundations.
These amendments will be welcomed by the business community. MOM Reg 35/2015 came into effect on October 23, 2015.
To read an English translation of Minister of Manpower Regulation No. 35 of 2015 prepared by SSEK Legal Consultants, please click here.
For further information, please contact:
Fahrul S. Yusuf, Partner, Soewito Suhardiman Eddymurthy Kardono
fahrulyusuf@ssek.com
