DFDL, Nov 26, 2020
MANPOWER
Following the passing of the bill by the House of Representatives on 5 October 2020, Law No. 11 of 2020 on the Job Creation Law (the “Job Creation Law”) was finally enacted on 2 November 2020. It involves and effects (to widely varying degrees) over 78 existing laws ranging from land licensing, investment, manpower, government administration and spatial planning to ease the conducting of business and commercial activities. The Job Creation Law is geared towards improving and enhancing the investment climate and creating more jobs in Indonesia.(...)
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Foreign Employees
The Job Creation Law has relaxed the requirement on having to submit a foreign employee utilization plan (‘rencana penggunaan tenaga kerja asing’) in order to hire foreign employees. The previous exemption to this requirement, before only applicable to diplomatic and consular employees, has now been extended to:
- directors and commissioners who also hold a certain number of shares in the relevant company;
- foreign employees required for certain types of production that ceased due to an emergency situation, vocational occupations, technology-based start-ups, business trips and market research for certain stipulated periods.
Additionally, positions that can be held by foreign nationals and the duration of employment will be further clarified by a forthcoming government regulation.(...)
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