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The Indonesian Supreme Court released new Labor Court’s policies which are listed below: The Labor Court does not further state any further decisions on this issue. Therefore, in other words, foreigners can be either fixed-term employees or permanent employees. However, the governing language in a bilingual agreement must be Indonesian.Ī fixed-term employment contract will become a permanent employment contract by law if companies violate the mentioned requirements. The writing in all fixed-term employment contracts is required to be Indonesian language but bilingual employment contracts are also allowed. The contract can further be extended once for a maximum of one year and be renewed once for a maximum for two years along with a grace period of 30 days. So can foreigners be hired as permanent employees in Indonesia? There is a debate going on for this question due to one of the sections under the Manpower Law mentioning that the agreement must specify the employment period of foreign staff.Īccording to the law, two years’ time is the maximum period for a fixed-term employment contract. Foreigners Employed Permanently in Indonesia In other words, it means that foreigners are not able to work permanently in Indonesia.Īs a result, expats are not able to have the termination benefits such as service pay, severance pay, and compensation pay, as specified in the law. Under the Indonesian Manpower Law, foreigners are only allowed to work under a fixed-term contract. Overview of Foreign Employment and Its Termination Benefits in Indonesia

It also contains the policies of the Labour Court especially in regards to foreign employment and its termination benefits specified under the Manpower Law 13/2003 in Indonesia.Ĭekindo will elaborate the labour policy in this article. 1 consists of new policies that Indonesian courts must exercise when dealing with civil, criminal, military and religious issues. If you are looking to hire foreigners to work for your company in Indonesia, you need to familiarise yourself with a guideline called SEMA No.

How Cekindo can Assist Foreigners to Work in Indonesia.Foreigners Employed Permanently in Indonesia.Overview of Foreign Employment and Its Termination Benefits in Indonesia.