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Penalties in the 1993 Manpower Law

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Manpower Law No. 13 Year 2003

Article 42

Every employer that employs expatriate is under an obligation to obtain a written permission from the Minister or Government official appointed on behalf of the Minister.

Article 185

Whosoever violates what is stipulated under subsection of article 42 shall be subjected to a criminal sanction in jail for a minimum of 1 (one) year and a maximum of 4 (four) years and/or a fine of a minimum of Rp. 100,000,000 (one hundred million rupiah) and a maximum Rp. 400,000,000 (four hundred million rupiah).

Article 44

  1. Job provider of expatriate is under an obligation to obey the existing, valid rulings/stipulations concerning occupations and applicable competence standards.
  2. Stipulations concerning occupations and competence standards as referred to under subsection (1) shall be regulated with a Ministerial Decree.

Article 45

1. Employers who employ expatriates are under an obligation:

(a) To appoint workers of Indonesian citizenship as accompanying working partners (co-worker) for expatriate shall transfer technologies and their expertise to their Indonesian workers.

(b) To educate and train workers of Indonesian citizenship, as referred to under point a, until they have the qualifications required to occupy the positions currently occupied by expatriate.

2. Stipulations as referred to under subsection (1) do not apply to expatriate who occupy the position of management (board of management) and/or the position of commissioner of the enterprise.

Article 187

Whosoever violates what is stipulated under subsection (1) article 44, subsection (1) of article 45, shall be subjected to a criminal sanction in jail for a minimum of 1 (one) month and a maximum of 12 (twelve) months and/or a fine of a minimum Rp. 10,000,000 (ten million rupiah) and a maximum of Rp. 100,000,000 (one hundred million rupiah).

The criminal action as referred to under subsection (1) is a criminal action of infringement.

Article 46

No expatriate is allowed to occupy positions that deal with personnel and/or occupy certain positions.

The certain positions as referred to under subsection (1) shall be determined and specified with a Ministerial Decree.

Article 47

Employers are obliged to pay compensation to the state for employing expatriate that is employed.

The obligation to pay compensation as referred to under subsection (1) does not apply to government agencies, international agencies, social and religious undertakings and certain positions in educational institutions.

Provision concerning the amount of compensation and its use shall be determined and specified with a Government Regulation.

Article 48

Employers who expatriate are under an obligation to repatriate to their countries of origin after their employment comes to an end.

Our thanks to Binka Consulting for sharing this information with us.

 
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