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View all search resultsThe sweeping bill states that foreign workers must get written permits except for members of boards of directors and commissioners, diplomatic and consular staff, those working at start-ups, in professional training, on business visits, doing research for a short period or doing machine maintenance for production in emergency situations.
Some of the key highlights of the bill, a draft of which has been obtained by The Jakarta Post, cover issues related to foreign workers, wages, work hours, redundancy and social security. A one-off extra payment as a “token of appreciation” for workers, which the government calls a “sweetener”, is also introduced in the bill.
Coordinating Economic Minister Airlangga Hartato clarified on Wednesday that contrary to the protests, the existing minimum wage and severance pay system would remain. In fact, the government would be implementing more protection measures for laid-off workers, he added.
Many consider the Labor Law to be one of the factors dragging down the country’s competitiveness, as high severance pay requirements and high wage requirements have discouraged labor-intensive, smaller enterprises from investing in the country.
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