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the employment of foreign workers and the other regarding the technical details for certain
positions, duration of employment and competencies that apply to foreign workers.

EMPLOYING FOREIGN WORKERS UNDER THE JOB CREATION LAW

In the cluster of provisions on manpower, the UU Cipta Kerja (Job Creation Law) has amended
or annulled several stipulations that were legislated previously in the Law No. 13/2003 on
Manpower. The Job Creation Law also establishes new provisions with several points that are
not yet regulated under the Manpower Law.

The newly enacted law has eliminated 18 provisions in Manpower Law No. 13/2003, while 21
Government Regulations (PP) have been issued to implement the Job Creation Law. Of these
Government Regulations, two refer specifically to foreign workers (TKA), with one regulation on
the employment of foreign workers and the other regarding the technical details for certain
positions, duration of employment and competencies that apply to foreign workers.

“The underlying changes aim to improve the manpower and investment ecosystem,” Manpower
Minister Ida Fauziyah said in Jakarta.

The provisions in Manpower Law No. 13/2003 that have been eliminated include Article 43,
paragraph 4 on ministerial authority over the provisions governing the expatriate placement plan
(RPTKA), Article 44, paragraph 2 on ministerial authority over the provisions governing the
available job positions and competency standards for foreign workers, ministerial authority over
governing the positions that foreign workers may hold, and Article 49 on presidential authority
over the employment of foreign workers and the implementation of education and training for
the appointed Indonesian coworkers.

Under the Job Creation Law, the detailed procedures for the employment of foreign workers will
be set in the relevant Governmental Regulation.

The amendments mean that Presidential Regulation No. 20/2018 on the employment of foreign
workers, as well as Ministerial Regulation No. 228/2019 on the positions open to foreign workers
as per Manpower Law No. 13/2003, are now null and void.

“It is necessary to speed up the preparation and endorsement of the Government Regulation on
foreign worker employment and the Government Regulation on the positions, time and
competency [for] foreign workers,” said minister Ida.

The Job Creation Law has thus changed the procedures that apply to the recruitment of foreign
workers.

Several provisions related to the employment of foreign workers in Manpower Law No. 13/2003
have been amended in the Job Creation Law, according to foreign worker management director
Haryanto of the Manpower Ministry.

The revised provisions eliminate the requirement that employers of foreign workers must obtain
a written permit and an RPTKA endorsed by the Manpower Minister. Under the new law,
employers of foreign workers are obligated only to hold an RPTKA endorsed by the central
government.

“With the documents needing only the endorsement of the central government, the online service
will work more maximally. The process for [legalizing] the RPTKA can be done without [inperson]
meetings,” said Haryanto.

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