The Indonesian Government regulates several obligations of company that hires Expatriate on the Permenaker No. 35 of 2015 and the Law No. 24 of 2011 on the Workers Social Security Agency

The company that hires foreign workers (expatriates) has at least five obligations that it should be obeyed according to Indonesian law or regulation, which are:

First, the company should be registered as Limited Liability Company In Indonesia or Representative Office. It is explained in the Article 4 of the Regulation of Ministry of Manpower No.35 of 2015 on The Procedure of Having Foreign Worker (The Minister Regulation). In addition, for Limited Liability Company, the minimum capital of the company must be above IDR 1 Billion.

Second, the company that wants to hire expatriate should apply for “Rencana Penggunaan Tenaga Kerja Asing / RPTKA” (the Expatriate Utilization Plan) as stipulated in the Artilce 5 (1) of the Minister Regulation.

Third, according to the Law No. 24 of 2011 on the Workers Social Security Agency (BPJS Law), the company should register itself and its (foreign) workers into Workers Social Security Program after 6 (six) months after their presence here in Indonesia as the employee of the company.

Fourth, the company is obliged to have Mandatory Manpower Report (Wajib Lapor Ketenagakerjaan / WLK). The report should be prepared before applying the RPTKA.

Fifth, the company should report its exercise of employing the foreign worker; and the realization of Expertise and Skills Development. The report should be submitted periodically every six months. It is explained in Article 49 (1) of the Minister Regulation.

Sixth, for company that appoint expatriate for a non-director or commissioner job position, they are obliged to appoint Indonesian citizen employee as working associate to the expatriate, during their contract period, company and expatriate must conduct mandatory training program for Indonesian associate worker as part of transfer knowledge program from expatriate to Indonesian employee.

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Author: ELSON