New Rules on Mandatory Insurance for Short-term Expats
The government will soon impose mandatory insurance for employers of short-term expatriate workers, through Ministry of Manpower Decree 146/2021 regarding Insurance Program for Foreign Workers Working Less Than Six Months, and Directorate General of Manpower Placement and Expansion of Employment Opportunities Decree 3/144/PK.04/V/2022 regarding the Implementation of Insurance Program for Foreign Workers Working Less Than Six Months.
The insurance program covers work accident, health and life insurance, at Rp 762,000 a month, Rp 1,715,000 for 3 months, and Rp 2,477,000 for 6 months. Employers must register the expats with insurance companies registered with the Financial Services Authority. Unfortunately, as of now the insurance choice option is limited and processed through one online portal; astaka.id.
During a seminar held by SSEK Legal Consultants with the Manpower Ministry on Sept 23, companies voiced concerns over having to register for more insurance for expats, as most employers already have international insurance for their expat workers. Another issue is the limited choice for the insurance, with a fixed price from only one portal. A Ministry official said there is the opportunity for more insurance companies to participate in this mandatory policy.
AmCham Continues Engagement with OJK Chief Mahendra Siregar
The newly appointed chief of the Financial Services Authority (OJK), Mahendra Siregar, hosted an in-person courtesy meeting with AmCham Indonesia at his office on Sept 27. Some of America’s biggest banks, payment, insurance, and technology companies attended the lively discussion with the former Ambassador to the US.
Mahendra has worked closely with AmCham since he became the Indonesian Ambassador to the US in 2019. With his recent post as Deputy Minister of Foreign Affairs in President Joko Widodo's second cabinet, we continued to consult with him on investment issues. He was also the Chair of the Task Force for the Acceleration of Socialization of the Omnibus Job Creation Law.
Mahendra spoke about his priorities going forward, while companies had the chance to voice their concerns over the upcoming Omnibus Financial Strengthening Law (RPPSK) and its impact on various financial sectors, the newly passed personal data protection law, digitization in the insurance sector, and reforms in the sector as a whole. Mahendra said he welcomed continued engagement with industry to develop an adaptive and robust regulatory environment in the financial sector.
AmCham appreciates Mahendra’s candid views on the financial sector, areas which need improvement, and how the private sector can support financial industry reform going forward.
AmCham Cares: Mars
Mars Wrigley, a maker of chocolate for more than 100 years, published its Cocoa for Generations 2022 progress report on Sept 23. The report details the company’s advancement toward creating a modern, inclusive, and sustainable cocoa supply chain; and 100 percent of its cocoa being responsibly sourced and traceable from farm to first point of purchase by 2025.
The report details Mars Wrigley’s significant progress in 2021 and highlights notable achievements to date. Enabled by its Cocoa for Generations strategy, Mars Wrigley is strongly committed to accelerating the transformation of the cocoa supply chain. It is backing its commitment with action, recently launching two ground-breaking programs to support 14,000 smallholder farmers in Indonesia and Côte d’Ivoire on a path to a sustainable living income by 2030.
To learn more about Mars Wrigley’s commitments to advancing respect for human rights, creating climate-smart solutions and providing opportunities to thrive under its holistic and human-centric Cocoa for Generations strategy, visit here.
Related links:
· Mars.com
Let Us Know Your Recent Social Responsibility Initiatives!
We have received positive responses for this program and would like to continue featuring your CSR stories and best practices. It is wonderful to learn the great things that our members are doing for the community.
Contact awis.mranani@amcham.or.idwith your CSR stories.
Educators Call for Education Bill Changes
The National Education System Bill (Sisdiknas) was not among the 38 draft bills approved to be part of the National Legislation Program (Prolegnas) priorities for 2023. The Sisdiknas is part of the Ministry of Education, Culture, Research, and Technology’s efforts to modernize Indonesia’s education system, and is a priority for Minister of Education Nadiem Makarim for the 2020 to 2024 legislative period. However, the House of Representatives rejected the Bill as lawmakers felt there was still more work to be done on it.
Educator groups have asked for further transparency in the Sisdiknas revision process. The Ministry needs to allow more meaningful participation, according to Head of Advocacy at the Education and Teachers’ Association (P2G) Iman Zanatul Haeir. Iman also recommended the Ministry establish a working group composed of academics and education leaders, and dedicated to gathering public input.
Minister of Law and Human Rights Yasonna Laoly said the Bill is an important legal product and is not being taken lightly by the government. He said he had received direction from President Joko Widodo for the Bill to be discussed within a limited meeting and ensure various inputs will be accommodated to improve the Bill.
Related links:
- https://www.thejakartapost.com/indonesia/2022/09/25/educators-call-for-education-bill-changes.html
- https://news.detik.com/berita/d-6313374/nadiem-mengaku-salah-soal-sebutan-shadow-organization-di-kemendikbud
- https://news.detik.com/berita/d-6303774/ini-alasan-ruu-sisdiknas-tak-masuk-prolegnas-prioritas-2023
WHO: Indonesia Must Remain Vigilant Despite Falling Covid Cases
Despite falling Covid-19 cases in Indonesia, all may not be what it appears, according to the World Health Organization (WHO). The WHO has emphasized the need to be cautious in interpreting Covid-19 trends, as the fall in cases has been accompanied by a decrease in the number of people being tested, meaning that it may not actually reflect the real situation.
As of September 12-18, 2022, national positive testing fell by 7.6 percent, followed by a fall in the screening rate to 1/1,000 of the population per week. However, only four of the 34 provinces in Indonesia have reached global vaccination targets of 70 percent of total population per region receiving two doses of the vaccine, and the vaccination rate for the elderly remains low for a majority of the regions. Noting the high risk Covid-19 poses toward the elderly, WHO asked for there to be more efforts in increasing their vaccination coverage.
Related link:
US Advanced Manufacturing Business Development Mission
The US Department of Commerce, International Trade Administration (ITA), is organizing an Executive-Led Advanced Manufacturing Business Development Mission to Indonesia and Singapore October 17-21, with an optional stop in Japan. The purpose of the mission is to increase US exports by connecting US firms and the National Electrical Manufacturers Association (NEMA) to meet with Indonesian business stakeholders. It will focus on advanced manufacturing systems, commonly referred to as Industry 4.0 or Smart Manufacturing.
US Assistant Secretary of Commerce for Industry and Analysis Grant Harris will lead the mission, and there will be 10 experienced US advanced manufacturing companies seeking to meet potential partners in Indonesia.
The Indonesia event will be held on Monday, October 17.
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AmCham Food and Agriculture Committee Meeting Discusses Priority Issues
AmCham Indonesia hosted its first in person Food and Agriculture Committee meeting on Sept 22. The pandemic has had a significant impact on Indonesia’s food and agriculture industry, and as the country recovers it is necessary to ensure a conducive regulatory environment to enhance the resilience, sustainability and productivity of the sector.
The meeting was opened by Committee Co-Chairs Triyono Prijosoesilo and Nani Hidayani, and started with discussions on the ever-present mandatory halal certification issue. Participants provided latest updates, especially on foreign halal certifying bodies, and shared their respective experiences on getting the certification. The committee also discussed Ministerial Regulation 75/2019 regarding the Roadmap to Waste Reduction by Producers. As it affects both foreign investors and local companies, there are many joint advocacy efforts under way, including policy impact assessment.
The meeting continued with a series of discussions on other prominent topics, such as the excise duty on plastic and sweetened beverages, local content for UHT milk and milk for specific medical purposes, the commodity balance policy, and import restrictions. Given there are still many issues faced by member companies, AmCham Indonesia will continue to monitor the developments of these issues and take necessary action going forward.
Now is the Time to Join AmCham!
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We offer a full slate of meetings, events, and information for our community online. But we can only do this through the support of our members. If you are not yet an AmCham member, please join now.
AmCham Indonesia is open to all companies with an interest in US business relations and we have many non-American members. We are a community and we welcome you!
Reach us at [email protected] or click below!
AmCham Office and Events
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The AmCham Office is transitioning back to the office. We are still maximizing online meetings, using the Zoom platform, but starting to have in-person meetings. You will be notified of the meetings as they are scheduled.
What is Your Company Doing on COVID-19?
Please let us know what measures your company may be taking in the form of donations and other assistance to help Indonesia during this time of confusion and concern. Contact [email protected] with your news. We would like to publicize the ways that our AmCham companies are pitching in.
Stay well
We urge you to send us press releases and other information that we can pass on to the broader AmCham community. If you have items of interest, please email material to [email protected]. Follow this link to information provided by the US Embassy
Stay safe, call a doctor if you have a high fever, cough, or difficulty breathing. Stay healthy above all else.
AmCham Update is AmCham's regular newsletter on developments related to the pandemic crisis and other issues in Indonesia. It is edited by AmCham Managing Director A Lin Neumann and written by the AmCham Staff. Paul L Goddard is the Managing Editor.
