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Latest Columns Manpower

  • MIGAS Recommendation for Foreign Workers in Oil & Gas Sector Officially Revoked

    MIGAS Recommendation for Foreign Workers in Oil & Gas Sector Officially Revoked

    On February 8, 2018, the Minister of Energy and Mineral Resources (Ignatius Jonan) officially revoked the obligation for companies in the Oil & Gas sector to obtain a MIGAS Recommendation for its foreign workers. By issuing Regulation number No. 6 of 2018 concerning the Revocation of the Minister of Energy and Mineral Resources Regulation, Minister of Mining and Energy Regulation and Decree of the Minister of Energy and Mineral Resources concerning Oil & Gas Business Activities ("Regulation ESDM 6/2018") the Minister officially revoked the Ministry of Energy and Mineral Resources Regulation No. 31 of 2013 on the Provisions and Procedures for the Use of Foreign Workers and the Development of Indonesian Workers active in the Business Field of Oil & Gas ("Regulation ESDM 31/2013).

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  • Retirement Allowance for Employees Entering Retirement in Indonesia

    Retirement Allowance for Employees Entering Retirement in Indonesia

    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.

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  • 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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  • Labor Audits of Companies in Indonesia by Ministry of Manpower

    Labor Audits of Companies in Indonesia by Ministry of Manpower

    The Ministry of Manpower is increasingly performing labor audits at foreign investment companies (PT PMA and Representative Offices) to find out any violations of applicable regulations. The labor audits are announced a couple of days before the actual inspection, which gives companies only limited time to prepare all required documents. The consequences of non-compliance with regulations may be profound. Possible sanctions may vary from fines, deportation of expatriates and restrictions placed on foreign investment companies. In this column we discuss the documents generally required to be shown to manpower officials in labor audits at PT PMA companies or Representative Offices.

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