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July 17—Employers in Indonesia must now have at least 10 Indonesian workers for every foreign worker employed, according to a July 16 client alert from Berry, Appleman & Leiden. The new regulation, issued June 29, provides exceptions for employees in certain roles.
According to BAL, companies do not have to comply with the 10:1 ratio for expatriate employees if the workers are in temporary jobs, “emergency and urgent” jobs or temporary positions in the fields of arts or sports.
“In addition, the rule does not apply to expatriate employees who are members of the board of directors or board of commissioners of an Indonesian company or who are members of the patrons, management or supervisors of a foundation,” BAL reported.
Indonesian companies should be prepared for possible increased scrutiny of their foreign work permits and labor force composition, BAL added.
To contact the editor responsible for this story: Rick Vollmar at firstname.lastname@example.org
The BAL client alert is available at https://www.balglobal.com/News/News/Details/tabid/1136/id/4517/language/en-US/INDONESIA-July-15-2015-Indonesia-strengthens-localization-program.aspx.
For more information on Indonesian HR law and regulation, see the Indonesia primer.
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