Employing foreign workers requires specific permits, including a Work Permit (IMTA) and a temporary stay permit (KITAS). Employers must also provide a clear reason why the position cannot be filled by an Indonesian worker and ensure the foreign worker’s role aligns with approved positions under the Ministry of Manpower’s regulations.
The processing time can vary, but typically it takes around 2 to 4 weeks from the submission of the required documents to the issuance of the KITAS.
Employment contracts must be in writing and should clearly outline both employer’s and employee’s rights and obligations, including job responsibilities, working hours, salary, benefits, and the duration of employment. The contract should comply with Indonesian Manpower Law No. 13 of 2003, as amended by the Job Creation Law.
In the event of a Merger or Acquisition (M&A), employees’ rights and contracts must be maintained, or the new employer must negotiate new terms with the affected employees. Severance and compensation payments may be applicable if there are changes to the employment terms or if employees are terminated as a result of the merger.
Yes, probationary periods are allowed under Indonesian labor law but can only last up to three months. During this time, the employment contract must clearly state the probationary nature of the work and the expectations for successful completion.
