Working conditions and labour laws in Indonesia

Indonesia article 45 Labor Law  article 36 of Minister Regulation 16 of 2015

Use Of Foreign Manpower (Minister Regulation), the company which employs expatriates is under the obligations to appoint an Indonesian companion to the expatriate. The goal of this appointment is that the expatriate transfers his knowledge and technology to the Indonesian companion. Ideally the Indonesian companion should be trained by the expatriate to take over its position. Therefore the Indonesian companion should have the appropriate educational background in line with the position of the expatriate.

xheers,
rick

Indonesian employment law is great if it's implemented, in larger international companies and I would imagine large Indonesian companies that is the case (contracted hours, overtime pay, paid leave, paid holidays/ festivals maternity leave etc to name just a few)
Expats, it can get complicated, depends on several factors, are you employed by an Indonesian company? Are you employed by a foreign company trading in Indonesia? Are you an expat sub- contractor working for a third party foreign company?
It's an extremely difficult question to answer as so many different possibilities can occur with how your employed within Indonesia, many expats/ vast majority of expats don't have the same protection or rights as Indonesians under the employment laws
Whereas in many other countries you are protected equally regardless if your a foreign national or not by the same laws or very similar as your national counterpart

An expat employee has a fixed set of rights in law, but also a fixed set of obligations.
One of the latter is the obligation to complete their contract or pay termination fees to the employer.
In the event of leaving a company, that company must cancel the employee's KITAS and obtain an exit permit.
No exit permit means you'll be turned around at the airport.

Indonesian Law Regulation No. 13 of 2003
Concerning Manpower

Entrepreneurs Termination of Worker

Article 158
1. Entrepreneurs can terminate working relations with workers/labor with the reason that the said workers/labor commit serious mistakes as follows:
a. Deceit, robbery or embezzlement of corporate goods and/or money;
b. Providing false of falsified information thus inflicting loss on company;
c. Being drunk, drinking alcoholic drink, consuming and or distributing narcotics,
psychotropic and other additives within the working environment;
d. Immortal actions or gambling within the working environment;
e. Attacking, torturing, threatening or intimidating fellow workers or entrepreneurs
within the working period;
f. Persuading fellow workers or entrepreneurs to commit actions contravening
legislation;
g. Damaging or letting carelessly or intentionally corporate property in a dangerous
condition thus inflicting loss on company;
h. Letting fellow workers or entrepreneurs carelessly or intentionally in a dangerous
condition in the working period;
i. Revealing or disclosing corporate secret which should be kept in secrecy unless
otherwise in the interest of the state; or
j. Other deeds within the corporate environment, which are liable to imprisonment
for 5 (five) years or more.
(2) The serious mistakes as meant in paragraph (1) shall be supported by the following
evidences:
a. Workers/labor are caught in red handed.
b. The said workers/labor concede;
c. Other evidences in the form of incident report made by the authorized party in the
said company and supported by at least 2 (two) witnesses.
(3) Workers/labor having their working relations terminated on the basis of the reasons
as meant in paragraph (2) can obtain the right compensation as meant in Article 156
paragraph (4).
(4) In addition to the right compensation according to the provision in Article 156
paragraph (4), separate money shall also be granted to the workers/labor as meant
in paragraph (1), whose task and function do not represent interest of entrepreneurs
directly with the amount and implementation being regulated in working agreement,
corporate rule or collective working agreement.

Article 156 states that :

(1) In case of labor dismissal, entrepreneurs shall be obliged to pay severance pay
and/or right compensation, which should be received.
(2) The minimum amount of the severance pay as meant in paragraph (1) shall be
stipulated as follows:
a. Amounting to wage for one month, in the case of the working period being less
than one year;
b. Amounting to wage for 2 (two) months, in the case of the working period being
one year or more than 2 (two) years;
c. Amounting to wage for 3 (three) months, in the case of the working period being
2 (two) years but less than 3 (three) years;
d. Amounting to wage for 4 (four) months, in the case of the working period 3
(three) years but less than 4 (four) years;
e. Amounting to wage for 5 (five) months, in the case of the working period being 4
(four) years but less than 5 (five) years;
f. Amounting to wage for 6 (six) months, in the case of the working period being 5
(five) years but less than 6 (six) years;
g. Amounting to wage for 7 (seven) months, in the case of the working period being
6 (six) years but less than 7 (seven) years;
h. Amounting to wage for 8 (eight) months, in the case of the working period being 7
(seven) years but less than 8 (eight) years;
i. Amounting to wage for 9 (nine) months, in the case of the working period being 8
(eight) years but less than 9 (nine) years;
(3) The gratuity as meant in paragraph (1) shall be stipulated as follows:
a. Amounting to wage for 2 (two) months, in the case of the working period being 3
(three) years or more;
b. Amounting to wage for 3 (three) months, in the case of the working period being
6 (six) years or more but less than 9 (nine) years;
c. Amounting to wage for 4 (four) months, in the case of the working period being 9
(nine) years or more but less than 12 (twelve) years;
d. Amounting to wage for 5 (five) months, in the case of the working period being 12
(twelve) years or more but less than 15 (fifteen) years;
e. Amounting to wage for 6 (six) months, in the case of the working period being 15
(fifteen) years or more but less than 18 (eighteen) years;
f. Amounting to wage for 7 (seven) months, in the case of the working period being
18 (eighteen) years or more but less than 21 (twenty one) years;
g. Amounting to wage for 8 (eight) months, in the case of the working period being
21 (twenty one) years or more but less than 24 (twenty four) years;
h. Amounting to wage for 10 (ten) months, in the case of the working period being
24 (twenty four) years or more.
(4) The right compensation which should be received as meant in paragraph (1) shall
include:
a. Annual leave not yet taken and null;
b. Expense or cost of workers/labor and their family to return to place where the
workers/labor are accepted to work;
c. Compensation for housing or medical treatment and care is set at 15% (fifteen
percent) of the severance pay and/or gratuity for those fulfilling requirement;
d. Others stipulated in working agreement, corporate rule or collective working
agreement.
(5) Any change in the calculation of severance pay, gratuity and right compensation as
meant in paragraphs (2), (3) and (4) shall be stipulated by a government regulation.

xheers,
rick

Fred wrote:

An expat employee has a fixed set of rights in law, but also a fixed set of obligations.
One of the latter is the obligation to complete their contract or pay termination fees to the employer.
In the event of leaving a company, that company must cancel the employee's KITAS and obtain an exit permit.
No exit permit means you'll be turned around at the airport.

If your brought in by (for example) a Singaporean company as an expat contractor to provide a service at a PT company in Indonesia you all but have zero rights and can be sacked (removed from site) with all but zero notice usually removed without question and if needed escort by police (probably fast tracked with exit stamp) even if just no longer required it happens often especially in my work sector but it's pretty much the same the world over

If employed directly by an Indonesian company/ registered company your spot on with employment rights