We recently issued a Client Update on Regulation 16 of 2015 on the Procedures for the Utilisation of Foreign Workers (Reg 16/2015). Reg 16/2015 was poorly received by the foreign investment community in Indonesia as it, among other things, required:
- non-resident expatriates serving as directors or commissioners of Indonesian companies to obtain work permits (IMTAs) (the focus of our previous Client Update);
- visitors to Indonesia carrying out certain temporary work to obtain temporary IMTAs; and
- any Indonesian company employing an expatriate to employ 10 Indonesians per expatriate.
On 23 October 2015, the Ministry of Employment (MoE) issued Regulation 35 of 2015 (Reg 35/2015), which amends key provisions of Reg 16/2015 and is effective immediately.1
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We will continue to monitor the implementation of Reg 35/2015 and issue further updates as more information becomes available. Reg 35/2015 appears to have addressed several of the legitimate concerns of the business community (so we hope that it remains in force for longer than Reg 16/2015).