How To Hire (And Fire) Expatriate Workers In Indonesia

(November 7, 2022) Despite the abundance of young, intelligent, and dynamic manpower in Indonesia, companies will sometimes need to hire foreign employees, such as when they need to fill a specific skills gap. However, hiring (and firing) foreign employees can be a complicated process. This article highlights key issues to consider.

1. Restricted Positions for Expatriates

In principle, the Indonesian Manpower Law and its implementing regulations prohibit expatriates from being employed in functions related to the management of personnel (i.e., human resources related). Before the enactment of the Omnibus Law (Law No. 11 of 2020 regarding Job Creation), this prohibition was governed under Article 46 of the Indonesian Manpower Law, which reads as follows: