The legal basis for foreign workers employed in Indonesia is Law No. 13 of 2003 on Manpower and Government Regulation No. 20 of 2018 on Foreign Workers. These regulations stipulate the requirements and procedures for employing foreign workers in Indonesia, including the necessary work permits, visas, and residency permits, limitations on the number of foreign workers that can be employed in a company, and the legal actions that can be taken if the regulations are not complied with. In addition, other regulations such as Minister of Manpower Regulations and Presidential Regulations may also regulate matters related to foreign workers in Indonesia.
In addition to Law No. 13 of 2003 and Government Regulation No. 20 of 2018, there are several other rules and regulations that govern employment in Indonesia. Some of these include Minister of Manpower Regulation No. 10 of 2018 on Procedures for Employing Foreign Workers, Minister of Manpower Regulation No. 228 of 2019 on Foreign Worker Registration and Application for Permission to Employ Foreign Workers, as well as Presidential Regulation No. 20 of 2018 on the Use of Foreign Workers. All of these rules aim to ensure that the use of foreign workers in Indonesia is conducted in an orderly, legal, and non-detrimental manner to national interests and the Indonesian community.
The procedures for obtaining work permits and residency permits in Indonesia for foreign workers are quite complicated and require a significant amount of time. This is because there are requirements and documents that must be fulfilled, such as a recommendation letter from the relevant institution, a valid passport, and other supporting documents. Additionally, companies that want to employ foreign workers must also meet certain criteria, such as having a valid business permit and having at least 10 employees who are Indonesian citizens.
However, despite these complicated procedures, the use of foreign workers in Indonesia is still needed in some sectors, especially those related to technology and special skills that are difficult to find domestically. Several multinational companies in Indonesia also often require foreign workers to meet their need for expertise in various fields. Therefore, the Indonesian government continues to strive to improve the quality of domestic human resources to reduce dependence on foreign workers.
Furthermore, the government has also set a limit on the number of foreign workers that can be employed in a company. Government Regulation No. 10 of 2021 on the Placement of Foreign Workers in Companies stipulates that companies can only employ foreign workers up to 10 percent of their total workforce. This limitation aims to protect the interests of local workers and increase employment opportunities for Indonesian citizens.
Overall, the use of foreign workers in Indonesia must be carried out in accordance with the applicable laws and regulations. In addition, the Indonesian government continues to strive to improve the quality of domestic human resources to meet the needs of the domestic labor market and reduce dependence on foreign workers.