Client Newsflash

Minister of Manpower Regulation No. 16 of 2015 Amended

On October 23, 2015, the Minister of Manpower issued Regulation No. 35 of 2015 (“Regulation 35”) to amend certain provisions of the Minister of Manpower Regulation No. 16 of 2015 (“Regulation 16”). The amendment is made due to certain concerns raised by stakeholders.

The key amendments are as follows.

♦ The 1:10 Ratio

The ratio of 1 expatriate to 10 Indonesian employees is now removed.  The 1:10 ratio was in Article 3 of Regulation 16.

♦Expatriates as a BOC Member in PMDN Company

Regulation 35 now restricts a Domestic Capital Investment Company (a “PMDN Company”) to have an expatriate commissioner.

♦ Temporary RPTKA and Temporary IMTA

A Temporary RPTKA (the Plan of Utilization of Foreign Manpower) and a Temporary IMTA (the permit to employ an expatriate) are now only required only for: (i) participating in a production of commercial movie, (ii) conducting audit, production control, or inspection to branch office in Indonesia for more than 1 (one) month, and (iii) performing work related to installation of machinery, electricity, after sales, or products during business observation phase.

Expatriates who attend meetings or speaking in seminars no longer require a Temporary RPTKA and a Temporary IMTA.

Temporary IMTAs will only be valid for the maximum of 6 (six) months and may not be extended.

♦ IMTA for Non-Resident BOD and BOC Members

Directors and commissioners who are not residing in Indonesia no longer require IMTAs.  Consequently, they are not required to obtain Indonesia tax registration numbers (known locally as NPWP).

♦ DKP-TKA payment in US Dollars

The requirement to convert the DKP-TKA fee from US Dollars to Rupiah has been revoked, and the DKP-TKA will be paid in US Dollars.

♦ Transitional Provisions

For companies who have paid the DKP-TKA fee for their non-resident BOD and BOC members as well as for the Temporary IMTA applications prior to the issuance of Regulation 35, such DKP-TKA fee is not refundable.

Copyright © 2015 AKSET. All rights reserved.

October 29, 2015

The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.

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