New Procedure To Employ Foreign Workers

The Minister of Manpower has recently issued Regulation No.16 of 2015 regarding Procedures to Employ Foreign Workers, which has been in force since June 29, 2015 ("Regulation 16/2015), repealing and replacing the Minister of Manpower Regulation No.12 of 2013, which regulated similar matters. Regulation 16/2015 sets out a number of new provisions pertinent to procedures for employing foreign workers, aiming at controlling the use of foreign workers in Indonesia.

Key restrictions

In this Client Update, we outline several key restrictions on employing foreign workers as regulated under Regulation 16/2015, as follows:

• Restriction on the number of companion workers: Subject to certain exceptions, employers are now obliged to appoint, at least, 10 (ten) Indonesian manpower as companion workers for each of their foreign workers.