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IFCCI Forum Group Discussion - New Regulation of Foreign Manpower: Implementation & Impact for Foreign Business in Indonesia

IFCCI has organized a Forum Group Discussion: New Regulation of Foreign Manpower: Implementation & Impact for Foreign Business in Indonesia on September 23rd, 2015 at Boardroom 1, Financial Club - Jakarta

In June 2015, The Ministry of Manpower issued Regulation of the Minister of Manpower No. 16 of 2015 regarding the Procuration of Foreign Manpower that sets separate frameworks for foreigners to be working in Indonesia, namely as investors themselves and as skill that is brought to the country with the ultimate aim of transfer of knowledge. For Board of Management or top-level positions, the Regulation stipulates new eased regulations, such as no need for a local accompaniment or apprentice, and also no requirement regarding specific competence or academic background, as long as the length of working period has been sufficed.

In this forum group discussion, the main point was an explanation behind the imposement of the 1:10 ratio, which has been perceived as a rather extreme measure taken by the Government. What is initially expected through this ratio is the multiplier effect in terms of opening up more job opportunities in Indonesia, which would alleviate the unemployment rate in Indonesia, as well as providing more chance for transfer of knowledge from the foreign workers, thus eventually supporting the national development.

Another point that was brought forward was the requirement for traveling businessmen or artistic performers to attend meetings, give lectures or trainings, or to perform, to obtain a temporary IMTA, whereas a business visa previously would have sufficed. This point raises quite a challenge in the implementation, but hopefully once the technical guidelines for implementing the regulation takes place, there will be more clarity to its undertaking in practice.

The discussion was really lively as the participants were very much engaging with the speakers. A lot of questions and suggestion were brought forward in regards to the implementation of the regulation, for instance the matters of cost efficiency of the new ratio, the transition period, the technicalities regarding the new regulation, among others. We believe that the forum discussion was an interesting occasion for the foreign employers within the Indonesian business world to voice their thoughts and concerns in an interactive manner with the government.

Thank you to Mr. Ruwiyono Septy Priharso, Head of Section for Foreigner’s Working Permit of Industrial Sectors from PPTKA (Foreign Worker Employment Service), Mr. Umar Kasim, Head of Section for Legal Research and International Convention from Legal Bureau of Manpower Ministry of The Republic Indonesia, Mr. Made Barata from Mochtar Karuwin Komar lawfirm was fantastic in moderating the panel discussion, and Mr. Christopher Johnston did a fabulous job as the interpreter.

We believe the participants found the discussion informative. Thus, we appreciate the valuable contribution of each speaker’s presentation which have given us a better understanding behind the Regulation of the Minister of Manpower No. 16 of 2015.

Once again, thank you for those who attended this interactive group discussion. We look forward to having another insightful discussion with all of you in the next IFCCI forum group discussion or seminars.


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