The Ministry of Manpower recently issued Decree 228/2019 on Certain Positions Permissible for Foreign Employees, which came into effect on 27 August 2019 and revoked all prior relevant decrees on this matter. The appendix to Decree 228/2019 provides a list of positions and business fields in which foreign employees can be employed. The list will be evaluated every two years (or as needed).
Indonesian entities must comply with certain requirements and follow a specific procedure when hiring foreign employees. The requirements and procedure used to be provided for in Minister of Manpower (MOM) Regulation 16/2015, as amended by MOM Regulation 35/2015. However, in 2018 the MOM issued a new regulation, which introduced a requirement to obtain a notification from the MOM when hiring foreign employees.
The employment of foreign citizens in Indonesia is subject to various restrictions, including with regard to employment terms. Foreign employees can be employed only on a temporary basis and thus cannot be considered permanent employees. However, they also cannot be considered fixed-term employees under Articles 56 and 59 of the Manpower Law. Despite this framework, mediators and the Industrial Relations Court have expressed inconsistent views on the legal status of foreign employees.