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Latest updates in labor regulations in Indonesia

Cheryl

Hello everyone,

Labor laws and regulations are constantly evolving. Staying informed of these updates as an expat in Indonesia helps you in navigating your professional experience and expat career.

We would like to invite you to share the latest or upcoming changes in labor laws in Indonesia:

- What are the recent changes you noticed?

-  How did they affect your expat career or professional experience?

- How employers and employees reacted to these changes?

- What are the upcoming changes to follow in 2025?

- Any advice to stay informed of these further updates?

Share your insights and experiences to help fellow expats in their professional experience in Indonesia.

Thank you for your contribution.

Cheryl
½ûÂþÌìÌà Team

See also

Job offers in IndonesiaWorking in IndonesiaStarting a business in IndonesiaWorking in BaliWorking in Medan
Harvey Lee97

@Cheryl

Seriously Cheryl. All law in Indonesia is so biased for national.protection .

If I visit an office 3 days in a row everyone wants to know if I am working there

Indonesian law is worse than the middle east 30 years ago

Indonesia needs foreign Investment no matter how small so expats like me with a wealth of global business experiance should be on demand. WRONG

Another silly law. You cannot get a bank loan if you are over 50 years of age

Dubai would be dead based on that law

If Indonesia really wants to grow it has to mentally change its approach to foreign participation on multiple angles

Most Indonesian nationals under 40 agree but the system is so engrained in protection of nationals that the way forward is to throw the rule book away .

That is what we did in middle east. What a power house. A clear unbiased labor law, a clear unbiased company law, purchase protection house ownership for all nationals.and so it goes on

Think logically if say Lombok had a clear house purchase policy like Dubai . There would be at least 10 x 200 home modern international developments full.

If Indonesia wants to solve it's problems it has to do a major rethink on all angles.

Yes it is possible and yes it is rewarding.

Harvey Lee a professional expat

Regar

Fred

@Cheryl
Seriously Cheryl. All law in Indonesia is so biased for national.protection .If I visit an office 3 days in a row everyone wants to know if I am working thereIndonesian law is worse than the middle east 30 years agoIndonesia needs foreign Investment no matter how small so expats like me with a wealth of global business experiance should be on demand. WRONG
- @Harvey Lee97

Ye godz


A government's first duty is to its citizens


Working illegally is bad news as the law is designed to protect  locals, not foreigners who want to break the law. If you visit a place of work too often, of course you will be questioned as a possible criminal. A criminal is a person who commits a crime, and working illegally is a crime. Unemployment is far too  high here to allow people to swan in and expect to follow their own rules.


Indonesia does not need poor people setting up tiny businesses - All you do is take much needed wealth from locals until you realise your business produces local income and you can't survive on it. Then another self-centred foreigner comes along and does the same.


The outcome is locals lose out  to silly, ill thought out dreams

Fred

Another silly law. You cannot get a bank loan if you are over 50 years of ageDubai would be dead based on that lawIf Indonesia really wants to grow it has to mentally change its approach to foreign participation on multiple angles Most Indonesian nationals under 40 agree but the system is so engrained in protection of nationals that the way forward is to throw the rule book away .That is what we did in middle east. What a power house. A clear unbiased labor law, a clear unbiased company law, purchase protection house ownership for all nationals.and so it goes onThink logically if say Lombok had a clear house purchase policy like Dubai . There would be at least 10 x 200 home modern international developments full.If Indonesia wants to solve it's problems it has to do a major rethink on all angles.Yes it is possible and yes it is rewarding.Harvey Lee a professional expatRegar - @Harvey Lee97

You can get a loan, but can you show income? As a comparably poor, non-working, unemployable foreigner, you can't get a bank loan at any age. Then it's worth noting, you can't get a loan without a KITAS. I get offered loans, credit cards, and anything else I fancy, but I don't use credit of any sort, so I always reject  them.

I am over 50, so your point is rubbish.


Most Indonesians are very open to foreigners, even  to the point where they are welcomed as friends, but local society is very much 'Indonesia first'. There's a very strong, very positive nationalism here. The above reply about younger Indonesians is utter rubbish. The rule book works very well, and what works should stay.


Much as the middle east is rich, many countries there simply don't have the manpower to fill jobs, so they bring foreigners in to fill in the gaps. Indonesia has a massive population, and the government is (quite rightly) putting them before foreigners.


As for foreign  land ownership. Look at the massive house price increases in Bali. Stupid foreigners without a clue force up prices for locals, and that's just illegal ownership and the demand for tourist accommodation.

UUD 1945 does not allow foreigners to own land, and that's a very good thing that won't be changing any time soon.


As for massive development on Lombok - Bali is the only place in Indonesia I dislike. The place, especially the tourist hotspots like Kuta, has been destroyed by mass tourism with idiot foreigners without a clue doing whatever they like. 

Lombok is a great place, and I don't want to see it end up a pigsty filled with drunken bogans in the way Bali has suffered.


Indonesia is bringing in a lot of foreign workers - specialists with something more to offer than a moan about how unfair the place is to people who have little clue about the country, how the place works, and a ME, ME, ME attitude.


Perhaps Dubai would suit you better.

Fred

Back in the real world.


Working in Indonesia

ASEAN country citizens have some freedom to work here if they are in given professions, but restrictions still apply.


For other foreingers to work, you need to get a work permit (IMTA) and a visa (ITAS or ITAP).

To get a work permit, you MUST have a skill that is not available locally.This does not include lifeguard, security, cook, waiters, massage parlour workers and/or other unskilled work.Be aware, the penalties for working illegally can include, fines, prison time, and deportation.


YOUR DREAM OF WORKING AS A LIFEGUARD OR A HAIRDRESSER ON BALI IS JUST A DREAM - FORGET IT.

The same applies to opening a tiny business. You can't.


The law is designed to protect jobs for Indonesians, nothing else.

A spouse sponsored KITAP holder is allowed to work informally without a work permit, part time and without contract. Working in your spouse's business is fine.

Holders of this immigration document are restricted (according to the work department but argued about a lot) from formal work.

KITAS (immigration document) and IMTA (Work permit) should be dealt with by your employer at no cost to you.

This means you should take the contract seriously, noting you might well be asked to pay fees if you resign before the contract period.

You should have an exit permit to leave the country, and it's your employer who deals with that, so no thinking about running away.