Below is a list with tagged columns and company profiles.

Today's Headlines Labor

  • Fourth Economic Stimulus Package Indonesia: Employment

    Fourth Economic Stimulus Package Indonesia: Employment

    On Thursday (15/10), Indonesian Chief Economics Minister Darmin Nasution unveiled the fourth economic stimulus package with a main focus on boosting labor and employment in Indonesia. A key policy in the new package is the fixed formula that will be applied by the government to determine increases in labor wages across the 34 provinces of the Archipelago. The government said it will allow a wage increase, every year, based on the provincial inflation rate and economic growth pace.

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  • Unemployment Rate of Indonesia Rises Slightly in August 2014

    Amid slowing economic growth, Indonesia’s unemployment rate increased slightly in August 2014. On Wednesday (05/11), Statistics Indonesia announced that 7.24 million Indonesians, or 5.94 percent of the country’s labour force, were without a job. In the previous unemployment report (covering conditions in the month February 2014), Indonesia’s unemployment rate stood at 5.70 percent of the country’s labour force (about 7.15 million Indonesians). The government agency releases Indonesia’s unemployment data twice per year.

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  • Unemployment in Indonesia Declines to 5.70% of the Total Labor Force

    On Monday (05/05), Statistics Indonesia announced that unemployment in Indonesia declined to 5.70 percent (of the total labor force) in February 2014, equivalent to 7.2 million people in absolute terms. Compared to August 2013 (when Indonesia's unemployment rate was 6.17 percent), this constitutes a marked improvement. However, growth was limited compared to February 2013 (when unemployment was 5.82 percent), Data on Indonesia's (un)employment are released twice per year, covering conditions in the months February and August.

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Latest Columns Labor

  • Wage Structure and Scale Regulated by the Ministry of Manpower

    Wage Structure and Scale Regulated by the Ministry of Manpower

    Recently, the Ministry of Manpower issued Regulation number 1 of 2017 on Wage Structure and Scale (New MOM Regulation). The New MOM Regulation is an implementation of article 14(5) of Government Regulation number 78 of 2015 on Wage (Government Regulation). In this column we discuss the wage scale and structure set by the New MOM Regulation.

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  • Manpower Issues in Separation of Indonesian PT Company

    Manpower Issues in Separation of Indonesian PT Company

    Article 1 (12) of Law number 40 of 2007 on Limited Liability Company (Company Law) defines the separation of an Indonesian PT company. It is a legal action of a PT company with the purpose to separate its businesses. Such separation causes a transfer of all assets and liabilities of a PT company to two or more companies. It can also cause a transfer of a part of the assets and liabilities of the PT company to one or more companies. In this column we will discuss the manpower related issues of such separation.

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  • Dispute Resolution through the Indonesian Labor Court

    Dispute Resolution through the Indonesian Labor Court

    The Indonesian labor court (known as the industrial relations court) is a special court within the general court. Parties in dispute refer their dispute to the labor court in case they failed to reach a solution through the bipartite and tripartite efforts to settle the case. The labor court can decide over all types of labor disputes between parties. In this column we provide a general overview of the litigation procedure at the Indonesian labor court.

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  • Reconciliation of labor disputes in Indonesia

    Reconciliation of labor disputes in Indonesia

    In our previous column we described the tripartite dispute resolution through mediation in Indonesia. As we have stated before, tripartite dispute resolution can be performed through mediation, consolidation and arbitration. In the column of this week we discuss the second option of tripartite dispute resolution, i.e. reconciliation. This type of dispute resolution seems similar to mediation. However there are several distinct difference between the two forms.

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  • Annual Leave of Employees in Indonesia

    Annual Leave of Employees in Indonesia

    Based on article 79 (2) (c) of Indonesian Law number 13 of 2003 about Manpower (Labor Law), an employee in Indonesia is entitled to receive 12 days of annual leave per year. This right of annual leave will arise after the given employee has worked for a company for 12 months consecutively. During the annual leave the respective employee is entitled to receive full wages. In this week’s column we discuss the implementation of annual leave in Indonesia and the rights and obligations of employees and employers resulting from that.

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  • Labor Disputes in Indonesia: Procedural Overview

    Labor Disputes in Indonesia: Procedural Overview

    Labor disputes in Indonesia are called industrial relation disputes in Law Number 2 of 2004 on Industrial Relations Disputes Settlement (Dispute Resolution Law). A labor dispute in Indonesia can be considered a difference in opinion between a company and its employees or the labor units representing the employees. Labor disputes can be about disagreement on rights in employment agreement, company regulations, etc, termination conflicts and conflicts between labor unions within one company. In the column of this week we discuss the general procedural overview of labor disputes between the company and employees/labor unions.

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  • Restrictions Employing Foreign Workers in Indonesia

    Law number 13 of 2003 regarding Manpower (Labor Law) and its implementing regulations are setting stringent restrictions to companies employing Foreign Workers (expatriates). Besides the licensing requirements as we discussed in our previous columns, the legislation sets other restrictions to companies which wish to employ foreign workers. In this weeks’ column we will discuss these restrictions to companies.

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  • Expatriate (Foreign Worker) Work Permit Indonesia - Part III

    Expatriate (Foreign Worker) Work Permit Indonesia - Part III

    This column is the third and final column regarding the work permit requirements for foreign workers (expatriates) in Indonesia. In the first column we discussed the requirements set by the Ministry of Manpower, which include (i) Foreign Manpower Utilization Plan (RPTKA), (ii) Approval Recommendation Visa (TA-01), and (iii) Work Permit (IMTA). In our second column we discussed the requirements set by immigration, which include Limited Stay Visa (VITAS) and Limited Stay Permit Card (KITAS). This week we discuss the remaining requirements set by the Police office, the departments of Labor and Demography and Civil Registration.

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  • Expatriate (Foreign Worker) Work Permit Indonesia - Part II

    In last week’s column we explained which licenses are required by the Ministry of Manpower for expatriates (foreign workers) who wish to obtain a work permit in Indonesia. We explained that the foreign workers (expatriate) who want to work in Indonesia must obtain the following permits which are issued by the Ministry of Manpower: (i) Foreign Manpower Utilization Plan (RPTKA), (ii) Approval Recommendation Visa (TA-01), and (iii) Work Permit (IMTA). Besides these permits, several other permits must be arranged at immigration, which we discuss in this week’s column.

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  • Fixed Term Employees in Indonesia: Early Termination

    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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