Obligations of Foreign Workers’s Employer in Indonesia

Based on Article 4 paragraph 4 of the Minister of Manpower Regulation Number 10 of 2018 (“Permenaker 10/2018”) concerning Procedures for the Use of Foreign Workers, that every Foreign Worker (TKA) Employer who employs TKA has the following obligations:

1. Obtained a Plan for the use of Foreign Workers (RPTKA) that has been approved by the Minister or the appointed official;
2. Pay DKP-TKA for every TKA who is recruited in accordance with laws and regulations;
3. Register TKA who work for 6 (six) months at the latest in insurance program at national insurance company;
4. Register TKA who work for 6 (six) months at the latest in National Social Security Program;
5. Appoint Understudy Workers for the purpose of technology transfer and TKA skills;
6. Implement education and training for Understudy Workers; and
7. Accommodate education and training for Indonesian language to TKA who are recruited.

However, please note that the aforementioned provisions in paragraph 4 letter e are exempted for TKA Employers who employ TKA for Emergency and Urgent Work, Temporary Work, members of the board of directors, members of the board of commissioners, members of supervisors, members of the management, and members of supervisors.

Employers of foreign workers who are not required to have RPTKA include:

1. Government agencies, representatives of foreign countries, and international agencies; or
2. The TKA Employer who employs the TKA as a member of the board of directors or a member of the board of commissioners with share ownership in accordance with the provisions of laws and regulations.

Suria Nataadmadja & Associates Law Firm

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