On June 29 2015, the Minister of Manpower of the Republic of
Indonesia issued a new regulation on the procedures of
employing foreign manpower.
This new regulation requires that Indonesian companies hire
at least 10 local employees for each foreign worker they
The requirement does not apply to members of the board of
directors or the board of commissioners of the company.
Similarly, with regard to Indonesian foundations, no additional
local employees need to be hired for foreign trustees
(pembina), managers (pengurus), or
However, Indonesian companies with foreign directors or
commissioners are obliged to file for a foreign manpower
utilisation plan (rencana penggunaan tenaga kerja
asing: RPTKA) and a permit to employ foreign manpower
(Izin Mempekerjakan Tenaga Kerja Asing: IMTA).
Similarly, foundations employing foreign pembina,
pengurus, or pengawas are required to obtain
both an RPTKA and IMTA. This obligation is imposed even if the
directors, commissioners, pembina, pengurus,
or pengawas reside outside of Indonesia.
The obligations to file and obtain RPTKAs and IMTAs are
imposed as of the approval date of the deed of
establishment or the deed of amendment, appointing the
non-Indonesian nationals to their respective positions.
Additionally, the new regulation imposes a requirement that
the employer pay a compensation fund for employing a foreign
employee in the amount of $1,200 per annum to the
Finally, the new regulation requires that foreign workers
who worked in Indonesia for a period of more than six months
apply for and obtain a taxpayer identification number
It is unclear, however, if the new requirements apply to all
companies, including those who have obtained an approved IMTA
under the previous regime, or if the requirements apply only to
companies applying for a new IMTA.
The new regulation is effective from June 29 2015.
Oene Marseille and Emir Nurmansyah