Indonesian President Joko Widodo wants to drop the regulation that states a foreign worker needs to learn Indonesian. Today (21/08), Cabinet Secretary Pramono Anung said President Widodo (often called Jokowi) requested Hanif Dhakiri, Indonesian Minister of Manpower and Transmigration, to revise this regulation (that was issued in 2013). According to Jokowi the language proficiency requirement would make Indonesia’s investment climate less competitive and could therefore hamper much-needed investment.
Update COVID-19 in Indonesia: 24,538 confirmed infections, 1,496 deaths (28 May 2020)
29 May 2020 (closed)
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Below is a list with tagged columns and company profiles.
Today's Headlines Employees Indonesia
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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.
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.
In previous weeks we discussed the new Ministry of Manpower regulation number 78 of 2015 concerning Wage (New Regulation). We explained the regulations set by the New Regulation related to the wage structure, non-wage and calculation of wage of employees in Indonesia. We also discussed the regulations regarding the payment of wage during absence of employees in Indonesia. In the column of this week we discuss the regulations set by the New Regulation regarding minimum wages and the imposition of fines by the employer to the employee.
In our previous column we have already discussed regulations regarding the wage structure, non-wage and calculation of wages of employees in Indonesia based on the Ministry of Manpower issued regulation number 78 of 2015 concerning Wages (New Regulation). The column of this week is a continuation of the previous column and discusses the other wage regulations set by the New Regulation, which includes regulations regarding payment of wages during absence of the employee.
On October 23, 2015, the Ministry of Manpower issued regulation number 78 of 2015 concerning Wage (New Regulation). The New Regulation is replacing the old regulation number 8 of 1981 concerning the Protection of Wage (Old Regulation). The New Regulation is a far more detailed implementation of regulations concerning wage/salary for employees in Indonesia compared to the Old Regulation and covers more subjects. In this first out of a three series column, we discuss the salary structure, non-wage and calculation of wage.
In our previous two columns we described employment dispute resolution through mediation and through reconciliation. In this week’s column we deepen the third and final option of tripartite dispute resolution in Indonesia: arbitration. Arbitration is essentially different from mediation and reconciliation. In arbitration the arbitrator determines the outcome of the dispute. This means the parties give all their control over the case to the arbitrator. The decision of the arbitrator is binding to the parties.
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.
In our previous column we have already explained that dispute resolution for labor disputes in Indonesia generally follows three general steps, i.e. bipartite dispute resolution, tripartite dispute resolution and dispute resolution of labor disputes through the industrial relations court (Labor Court). In the column of this week we take a closer look at the rules and procedures governing the bipartite dispute resolution. The employer and employee in Indonesia are required to perform this bipartite negotiations, before the dispute is being resolved through e.g. mediation or court.
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.
Minister of Law and Human Rights Regulation number 27 of 2014 on Technical Procedures for Granting, Extension, Refusal, Cancellation and Termination of a Visit Stay Permit, Limited Stay Permit, and Permanent Stay Permit and Exclusion of Liability of Holding a Stay Permit (Regulation 27/2014) regulates how foreigners can obtain a visit stay permit (visitors permit) and which activities are allowed under a visitors permit. In the column of this week we provide an overview of the types of visitors permits and based on which activities such permits can be obtained.
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