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.

Lanjut baca ›

The obligation for foreign companies to perform a divestment of part their shares to Indonesian companies has raised already much discussion among foreign investors. Before the enactment of BKPM regulation number 5/2013 on Guidelines and Procedures on Licensing and Non-licensing of Capital Investment as amended by BPKM regulation number 12/2013 (BKPM Regulation), divestment was required for all foreign companies (PMA) in Indonesia. The new regime of the BKPM Regulation removes this obligation, even though there are still sectors in Indonesia which require foreign companies to divest, such as the mining sector.

Lanjut baca ›