Comparative Guides

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4. Results: Answers
Labour and Employment
7.
Trends and predictions
7.1
How would you describe the current employment landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?
Indonesia

Answer ... A recent development is the issuance of Ministry of Manpower and Transmigration (MOMT) Decree 228/2019 on Positions Open for Expatriates. The decree expressly provides that director and commissioner positions may be held by expatriates in all sectors, to the extent permitted by the prevailing laws and regulations, and insofar as such positions do not include human resources and administrative matters.

Attached to the decree is a list of positions that can be filled by expatriates. The positions in the list are classified under 18 business sectors. In earlier drafts of the decree the positions open to expatriates were delineated under 17 business sectors, as construction and real estate were combined.

While the list specifies the positions that may be filled by expatriates, the MOMT has the authority to approve the employment of an expatriate whose position is not included on the list. Further, the decree provides that all positions and related requirements shall be evaluated at least every two years or at any time as necessary.

The decree is part of a trend in the Indonesian employment law landscape of easing the process for expatriates to work in Indonesia.

For more information about this answer please contact: Fahrul S. Yusuf from SSEK Indonesian Legal Consultants
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Labour and Employment