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Expatriates working in Indonesia are referred to as foreign workers in Indonesian Law number 13 of 2003 regarding Manpower (Labor Law). A foreign worker is defined as a visa holder with foreign citizenship, who has the intention to perform work in Indonesia. Both expatriates working in Indonesia and the companies employing such expatriates are subject to permitting requirements and restrictions set by the Indonesian Government. In this column we provide an overview of the general licenses needed to employ foreign workers.
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One of the key strategies to improve the economic fundamentals of Indonesia is to restructure and strengthen the country’s exports. This restructuring involves the transformation of Indonesian exports from being dominated by (raw) commodities to manufactured exports by developing downstream industries in Southeast Asia’s largest economy, including import substitution industrialization in order to curb the country’s demand for imported products amid Indonesians’ rising purchasing power.
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Early termination of the employment agreement of fixed term employees in Indonesia is separately regulated from termination of permanent employees in the Indonesian Law number 13 of 2003 regarding Manpower (Labor Law). Fixed term employees have an employment agreement which will end at a particular date, or on completion of a specific task or project. In this column we will discuss the reasons of termination of the employment agreement of fixed term employees and its financial impact on the employee or the company.
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The Customs Identification Number (NIK) in Indonesia is a personal identity number given by the Directorate General of Customs and Excise to users of customs services, such as importers and exporters. This customs number gives customs users the possibility to access or connect with the customs system. The registration of a Customs Identification Number is required in order to perform customs activities. Without such number trading companies are (in most cases) not able to perform import or export activities.
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The views expressed in these business columns are the views of the authors or the interviewed persons only and therefore do not necessarily reflect the views of Indonesia Investments. The authors are free to ventilate their opinions about the Indonesian business climate. Facts presented in these columns are the result of the author's own research or indicated sources, read disclaimer.
