In June 2015, Indonesia’s Minister of Manpower (MoM) issued a new law called Regulation No. 16 of 2015 on Procedures for the Utilization of Foreign Employees. According to the new law, an expatriate wishing to be employed in Indonesia must satisfy the following conditions:

1. have appropriate educational qualifications for the position;
2. have certificates of competency or at least five years of work experience relevant to the position;
3. provide a statement letter describing how the mandatory transfer of knowledge and skills to the Indonesian counterparts will be effected and evidenced by training reports;
4. provide evidence of an insurance policy with an Indonesian insurance entity; and hold an Indonesian Taxpayer Registration Number (NPWP) if they have been working in Indonesia for more than six months;
5. be enrolled in the National Social Security System (Jaminan Sosial Nasional) if they have been working in Indonesia for more than 6 months.

However, the following exemptions apply:

• the requirements under points (1), (2) and (3) are exempted for directors and commissioners of an Indonesian company and members of the boards of patrons, management, and supervisors of an Indonesian foundation; expatriates employed for emergency and urgent work are exempt from these requirements; and
• expatriates employed for temporary work or as entertainers are only required to satisfy the local insurance requirement (point 4).

Note that a foundation must have an Indonesian citizen as one of the founders.

Foreigners working in Indonesia must hold a working permit, [IMTA] (http://www.pnbimmigrationlawfirm.com/document-requirements-imta/) and temporary stay permit KITAS. A PT company in Indonesia must have at least two shareholders (members). However, there are no restrictions on the maximum number of members that a company can have.

Sources

-Norton Rose Fullbright