New Regulation: Open Positions Mark a Potential Shift in Indonesia

November 9, 2021 | xpath.global

On August 27, 2019, Indonesia ’s Ministry of Labor introduced Regulation No. 228 of 2019, aiming to redefine job positions available to foreign employees within the country. This regulation marks a significant expansion, consolidating various positions into one comprehensive list. It effectively streamlines the approval process for both employers and foreign nationals, simplifying administrative hurdles.

Attracting Highly-Skilled Talent

The primary objective of this ordinance is to entice highly-skilled foreign professionals to contribute their expertise to Indonesia’s workforce. By broadening the scope of accessible job roles, the regulation seeks to bolster Indonesia’s economic development through enhanced knowledge transfer and skill acquisition.

Comprehensive Coverage

Indonesia ‘s Regulation 228 encompasses an extensive array of over 2,000 job titles across 18 sectors. Notably, industries such as education, mining, construction, and IT emerge as key sectors offering ample opportunities for expatriate employment. Moreover, this legislation mandates a periodic review every two years to ensure its relevance and efficacy.

Key Reforms and Requirements

In addition to expanding the range of eligible positions, the reform introduces several noteworthy changes:

  • The Ministry of Labor gains authority to directly approve work permits for foreigners holding unlisted positions.
  • Foreign workers must possess a minimum of five years’ relevant experience, with senior positions requiring over eight years.
  • Furthermore, expatriates are obligated to facilitate knowledge transfer to their Indonesian counterparts, fostering skill development and capacity building within the local workforce.

Bridging the Skills Gap

This regulatory overhaul is hailed as a strategic move to address Indonesia’s pressing skills gap by attracting and retaining top-tier international talent. It not only enhances the nation’s competitiveness in the global market but also promotes sustainable growth through knowledge exchange and collaborative innovation.

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