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View all search resultsJob Creation Law to ease recruitment of foreign workers
Indonesia, keen to attract more foreign investment by loosening the screws on labor limitations, is happy to allow business owners like John bring in more foreigners to work in the country. But the perceived negative sentiment against foreign labor and decades-old legal barriers have limited the scope of investment in this space – a problem the government seems intent on solving with the Job Creation Law.
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usiness consultancy owner John, 55, who is from the United States but has been running his business in Indonesia for the past 10 years, has said he would consider employing foreign workers if his business grows. However, he said that employing foreigners in Indonesia was a relatively unattractive option given its high cost barriers.
Apart from it being more expensive to pay for their services, the vast administrative procedures to follow, reports to submit and licenses to secure for entering, staying and working in Indonesia have made the overall experience just that much more complicated.
Therefore, it would be useful to streamline the process and make it more convenient for businesses to hire foreigners, especially when it comes to foreign investors, he said.
“You can’t attract foreign investment if you don’t allow the foreign investor to send in trusted and experienced business managers to oversee their investments,” said John, who requested not to use his full name.
Indonesia, keen to attract more foreign investment by loosening the screws on labor limitations, is happy to allow business owners like John bring in more foreigners to work in the country. But the perceived negative sentiment against foreign labor and decades-old legal barriers have limited the scope of investment in this space – a problem the government seems intent on solving with the Job Creation Law.
Hadi Subhan, a labor issues expert from Airlangga University in Surabaya, East Java, said the jobs law looked to ease existing restrictions on employers hiring foreigners, by only requiring them to submit their expatriate employment plans (RPTKA).
Previous regulations required employers to submit both their RPTKA and an expatriate employment permit (IMTA) in order to be able to hire foreigners.
