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An Overview of the Local Labour Laws and Requirements That Govern the Nation

Summary of Employment Laws in Indonesia Both employers and employees who intend to live and work in Indonesia should be aware of the employment laws that apply to both local and foreign nationals.


No Difference Between Locals and Foreigners

Under the Indonesian labour law, there is no expressed difference between the regulations that apply to locals and foreign nationals. The Indonesian Labour Law is the main legislation that governs all the employee relations in the country. It specifically focuses on the relationship of the employment, the terms and conditions while employed, and the termination regulations.

However, there are two categories of employees available in Indonesia. The two categories are defined under Law No. 13 of 2003 on Manpower (Labour Law). The two categories are:

  • Definite term employees (Pekerja Waktu Tertentu) – This category of workers are also known as contract workers.
  • Indefinite term employee (Pekerja Waktu Tidak Tertentu) – This category of workers are also known as permanent workers.


Working Regulations for Foreign Employees

Foreign employees can work in the country if the task cannot be carried out by an Indonesian national. The work should not be work that is prohibited to the foreign national under the current regulations and laws.

Per the law, if a company cannot find a suitable local employee with the necessary skills, then they can hire foreign employees. However, they must have at least one Indonesian employee who is also employed simultaneously. The employee is to be trained by the company.


The Laws for Nationals Working Abroad

The following laws will apply to any Indonesian national who is working abroad:

  • Law No. 39 of 2004 on the Placement and Protection of Labour Workers.
  • Presidential Regulation No. 81 of 2006 on National Board on the Placement and Protection of Indonesian Manpower.
  • Government Regulation No. 3 of 2013 on the Protection of Overseas Indonesian Workers.
  • Minister of Manpower and Transmigration Regulation No. PER.14/MEN/X/2010 on the Implementation of the Placement and Protection of Indonesian Manpower Overseas.


Fair Employment

The employment laws in Indonesia make it clear that everyone is entitled to an equal opportunity. They should be treated equally without discrimination in employment. This is applicable to both job applicants and currently employed workers. Workers should not be discriminated against on any of the following:

  • Race
  • Ethnicity
  • Sex and sexual preference
  • Political preferences
  • Religion
  • Disability
  • AIDS/HIV status
  • Harassment


Minimum Employment Age

In Indonesia, the minimum age for employment is 15-years. This is applicable for regular employment. Special considerations are available for those under the age of 18-years. Child labour is not permitted in the country. The local child labour laws are stipulated in the Minimum Age Convention No. 138 of 1973 (C138) and Worst Forms of Child Labour Convention No. 182 of 1999 (C182).

Summary of Employment Laws in Indonesia