Indonesia’s financial authority, the OJK, has recently issued regulation no. 37/POJK.03/2017 on the Employment of Foreign Workers and Knowledge Transfer within the Banking Sector (New Regulation). The New Regulation replaces Bank Indonesia regulation number No. 9/8/PBI/2007 on the Employment of Foreign Workers and the transfer of knowledge program Within the Banking Sector. In this column we discuss the available job titles for foreign workers, the application requirements and the transfer of knowledge program.
The Business Columns section of Indonesia Investments provides in-depth columns that exhibit an analysis regarding subjects that are both important for understanding the Indonesian business climate and have high news value in the current state of Indonesia's economy. As a whole these columns should provide the reader a thorough and detailed picture of multiple Indonesian business sectors and be a source of ideas or inspiration to invest - or not to invest - in specific sectors of the Indonesian economy.
The biggest problem for western car-makers is the dominant position of Japan in Indonesia's automotive market. Japan has been dominating the Indonesian car market since the 1970s and there are no signs that this situation will change in the short or long term.
Currently, the retirement age in Indonesia is 56 years old. As of January, 2019, the retirement age is set to increase to 57 years old and after that gradually increase until 65 years old. When employees in Indonesia retire, they are allowed a certain amount of retirement allowance based on the Labor Law number 13 of 2003 on Manpower (Labor Law). In this column, we discuss in which cases employees are entitled to this retirement allowance and which deductions are available for companies. This column will not discuss the pension allowance and old age insurance from BPJS.
Cement consumption in Indonesia grew 5.7 percent year-on-year (y/y) to 41.1 million tons in the January-August 2017 period (compared to the same period one year earlier). This can be labelled a rebound compared to bleak growth of 1.8 percent (y/y) and 1.6 percent (y/y) in 2015 and 2016, respectively. This year Indonesian cement demand could in fact reach 64 million tons.
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.