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Print articleIndonesia's New Regulation on the Employment of Foreign Manpower
July, 2015 - Lia Alizia, Partner & Valdano Paulo Ruru, Associate
On 29 June 2015, a new regulation on the procedure for employing foreign manpower (ie Minister of Manpower Regulation No. 16 of 2015) entered into force, revoking the previous regulation, Minister of Manpower Regulation No. 12 of 2013. Some important provisions in the new regulation include the following:
• In general, an employer of foreign manpower must employ at least ten Indonesian workers for every one foreign worker.
• Associations (Usaha Bersama –“UB”) and Cooperatives are now prohibited from employing foreign manpower unless permitted under the prevailing laws and regulations.
• There are now 7 types of Foreign Manpower Employment Plans (Rencana Penggunaan Tenaga Kerja – “RPTKA”) and 8 types of Foreign Manpower Employment Permits (Izin Menggunakan Tenaga Kerja Asing – “IMTA”), some of which are new:
