Presidential Regulation on Foreign Workers Policy Alert

President Joko releases regulation to ease use of foreign workers

By Gilang Ardana
Thursday, April 12, 2018

President Joko Widodo has signed a presidential regulation to ease the use of foreign workers in Indonesia. 

PP 20/2018 on The Use of Foreign Workers, which was signed on March 26, 2018, no longer mandates employers to have a Foreign Workers Recruitment Plan (RPTKA) for shareholders who are on the board of directors or a member of the board of commissioners. The regulation also allows employers to submit the RPTKA two days after the foreign worker has started working, providing that the job is an emergency and urgent in nature.

By this regulation, employers from certain industry sectors are allowed to employ foreign workers who have been hired by other employers for the same position, and this will be valid until the end of the contract with the first employer.

AmCham Indonesia has been advocating for changes to foreign worker regulations for many years, and looks forward to more reforms in the foreign worker permit process in the future.

“This action on work permits is quite welcome, but it could go even farther. We have long said that foreign investors need to have ease of hiring and that expats add real value to companies, the economy and the knowledge base for Indonesia,” said AmCham Indonesia Managing Director A. Lin Neumann.

The regulation will come into force on June 29, 2018. 

 

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