Indonesia Manpower Law: New Regulation on Titles Open for Foreign Worker

• 07 Feb 2020

The Minister of Manpower has finally issued Regulation No. 228 of 2019 on Certain Titles Open for Foreign Workers ("MoM Reg 228/19") on 27 August 2019. MoM Reg 228/19 replaces 19 decrees of the Minister of Manpower(“MoM”) on the titles that foreign workers can hold in different categories of business/industry in Indonesia.

Main Keys of MoM Reg 228/19: We note that the important notes on MoM Reg 228/19 are as follows:

1. Positions of directors and commissioners who are not managing personnel are open for foreigners as long as the appointment of the foreign directors and commissioners does not contradict the prevailing laws and regulations. In other words, generally foreigners can still hold positions of directors or commissioners of an Indonesian company.
2. MoM has the discretion to approve work permits for foreign workers intending to hold titles or positions that are not listed in the attachment of MoM Reg 228/19. Previously, MoM could still approve work permit applications for a foreign worker if the proposed title/position was not specifically mentioned as open for foreign workers. However, the approval required a recommendation from the relevant technical ministry. MoM Reg 228/19 no longer refers to this requirement.
3. Titles or positions open for foreign workers and the title/position requirements will be evaluated every two years, or whenever considered necessary. However, MoM Reg 228/19 does not specify conditions that will make an evaluation necessary outside the regular schedule.
4. Work permits issued before 27 August 2019 (date of the issuance of MoM Reg 228/19) will continue to remain valid until their expiry.

Positions Open for Foreign Workers: The attachment of MoM Reg 228/19 includes a number of lists of titles/positions that are open for foreign workers in Indonesia. Each title/position has a corresponding International Standard Classification of Occupations (ISCO)/Indonesian Standard Classification of Occupation (KBJI) code. The lists of open positions are based on 18 business categories in Indonesia. Some categories, groups and subgroups include a list covering more than 100 positions that are open for foreigners. Some categories only specify a few positions that are open for foreigners.

List of Industry Categories: The 18 industry categories specifically mentioned in the attachment MoM Reg 228/19 are as follows:

1. Construction; 

2. Real Estate;

3. Education;

4. Processing Industry;

5. Water Management, Water Waste Management, Waste Management and Recycling, and Remediation Activities - only for Main Group of Waste Water Management;

6. Transportation and Warehousing;

7. Art, Entertainment, and Recreation;

8. Provision of Accommodation and Provision of Food and Beverages;

9. Farming, Forestry and Fishery;

10. Activities of Rental and Leasing without Option, Manpower,Travel Agent, and Other Business Supports;

11. Finance and Insurance Activities;

12. Human Health Activities and Social Activities;

13. Information and Telecommunication;

14. Mining and Excavation;

15. Procurement of Electricity, Gas, Steam/Hot Water, and Cool Air;

16. Wholesale and Retail Trade, Repair and Maintenance of Cars and Motorcycles;

17. Other Services Activities; and

18. Professional, Scientific, and Technical Activities.

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The article above was prepared by Marshall S. Situmorang (Partner).