ANNOUNCEMENT 24 Oct 2013

In October 2013, the government of Indonesia announced a change for the labour market access of foreign workers.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 24 Oct 2013 | Removal date: open ended
Still in force

Labour market access

On 24 October 2013, the Indonesian Ministry of Energy and Mineral Resources issued regulation 31/2013 restricting the employment of foreign workers in the oil and natural gas industry.
Based on article 2(1) of the new regulation, contractors and downstream enterprises (i.e. in the refining and distribution) of the sector shall prioritize the local employment.
 
Furthermore, only Indonesians shall be allowed to take positions in the following areas:
'a. Human Resources;
b. Legal Department;
c. Health and Safety Environment;
d. Supply chain management, which includes procurement, materials and logistics;
e. Quality control, which includes inspections;
f. Structural positions in exploration and exploitation activities under the level of superintendent or equivalent structural positions' (art. 3(2) of regulation 31/2013; own translation).
 
Other restrictions include the prohibition of a foreign worker occupying more than one position at a time (art. 5(1)), the requirement of each employer of foreign staff to obtain an approval and recommendation from the Directorate General (art. 6(1) & 9(1)), the foreign employee being for certain positions between 30 and 55 years of age (art. 7(1)c) or fluency in Bahasa Indonesia (art. 7(1)f).
The regulation came into force on the day of its issuance.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A