Manpower Report is an important thing that may lead sanctions both administrative and criminal to the companies who do not report it

Have you reported your company’s data to the authorities? Do not let yourself subjected an administrative even criminal sanction only because you neglect to report it. Manpower report has an important role to the company and there will be a sanction both administrative and criminal to the companies who do not report it.

Article 4 Law No. 7 of 1981 on Manpower Report paragraph 1, stated that:

“Employers or officials shall report in writing for any establishing, stopping, running back, relocate or dissolve of a company to the Minister or authorities.

Below are three reasons why your company should arrange Manpower Report immediately:

  1. Indicator for your company in running benefit programs of employees.

    Not only pursue a number of revenue, but a business run by a profit goal. But there are also some regulations governing the matters regarding their manpower welfare.
    It is important to know that before a Mandatory Manpower R eport has been approved and ratified by the authority, there are some requirements regarding benefit programs of employees such as is your company already registered in BPJS Manpower, BPJS Health and Social protection on employment relations outside office hours (JSHK).
    This matter make the reason why Mandatory Manpower R eport can be an indicator that your company has implemented benefit programs for employees well and properly.

  2. There is any criminal sanction.

    For the implementation of government plans above, there are the necessary sanctions, which aim to discipline the policy implementers. One of them provided in Article 10 paragraph 1 on the Law of Mandatory Manpower Report, stated that:
    “E mployers of official who do not fulfill the obligation referred to in Article 6 paragraph (1), Article 7 paragraph (10, Article 8 paragraph (1) and Article 13 shall be punished by imprisonment for a maximum 3 (three) months or a maximum fine IDR 1,000,000.00 (One million rupiah).
    In the Article above explains that there will be a sanctions in the form of  a maximum imprisonment of 3 (three) months or a maximum fine IDR 1,000,000.00 (one million rupiah) if any company who does not perform its obligation to report data of company, whether it is after established or renewal each year. The report should be made no later than 30 days before relocate, suspend, or dissolve the company as mentioned previously.

  3. Mandatory Manpower Report is one of requirement to the company who want to hire foreign worker

    Mandatory Manpower R eport is one of mandatory requirements set by the Ministry of Manpower and Transmigration before your company can apply to hire foreign worker.
    Without Mandatory Manpower Report, it can be ascertained that your company will not able to apply a permit for Foreign Worker.

How can ELSON help you?

ELSON Indonesia is a company that focus on providing comprehensive legal solution for expatriates, foreigner, and mix marriage couple in Indonesia.

Contact us:
Phone: +62822 1000 9872
Office: +6221 8067 4920

Author: Selfia Christiani, SIP