Client Newsflash

Compilation of Positions Available to Expatriates

The Minister of Manpower (the “Minister”) recently enacted the Minister of Manpower Decree No. 228 of 2019 dated August 27, 2019 on Certain Positions Available to Expatriates (“Decree 228”).  Decree 228 lists 2,196 positions available for expatriates. The positions are divided into 18 business sectors, namely, among others, construction, real estate, education, processing industries, transportation and warehousing, financial and insurance activities, mining and extraction, and large and retail trading.

Decree 228 implements Article 42(5) of Law No. 13 of 2003 dated March 25, 2003 on Manpower (the “Manpower Law”) which states that expatriates may only be employed for certain positions and specified term, and that such position shall be stipulated under a separate decree.

Decree 228 compiles, and replaces, previous 19 specific Minister decrees that listed of positions available to expatriates based on business sectors (e.g., construction, education services, trading, industry, etc.).  Decree 228 also revokes all other decrees of the Minister that set out positions that are available to expatriates. So, Decree 228 is now the single decree to review to determine positions available to expatriates.

Note that Decree 228 does not deal with positions that are closed to expatriates under Article 46(2) of the Manpower Law. So, the Minister of Manpower Decree No. 40 of 2012 dated February 29, 2012 on Certain Positions Closed to Expatriates continue to be in effect.

The key issues of Decree 228 are set out below.

♦  Categories of Positions

Decree 228 lists the positions available for expatriates based on the International Standard Classifications of Occupations (ISCO) Code and the Indonesian Standard Occupation Classifications (KBJI). Further information on ISCO may be found in the following link: https://www.ilo.org/public/english/bureau/stat/isco/.

Decree 228 allows expatriates to be members of a Board of Commissioners and a Board of Directors as long as they do not deal with personnel-related matters.

♦  Unlisted Positions

Decree 228 also allows the Minister or any other authorized official to approve a position for expatriates that is not listed in Decree 228.  It remains to be seen how this provision will be implemented in practice.  We believe that the Minister and the relevant officials will not be too flexible in allowing other positions for expatriates.

♦  Periodic Evaluations

Decree 228 states that the lists will be reviewed every 2 (two) years or at any time deemed necessary by the Minister.

September 17, 2019


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