Can Foreign Workers Occupy Director Positions in Indonesian Companies? Here Is Your Answer

Indonesia is known to have strict regulations on the use of foreign workers. Here is the answer to the question of whether a foreign worker can become a director in local companies.

Foreign workers are the foreigners working in the Indonesian territory for certain positions within a specified time. This type of worker requires a special work permit in the form of a visa whose provisions are regulated in the law.

The use of foreign workers has different regulations from local workers. Therefore, the prevailing legal regulations cannot be compared to ordinary workers. You can find several regulations regarding the use of foreign workers in The Presidential Regulation Number 72 of 2014 (concerning the use of foreign workers and the implementation of companion workforce education and training), and Manpower Minister Regulation No. 16 of 2015 (concerning the procedures to use the foreign workers).

The Use of Foreign Workers in Indonesian Company

Regarding the use of foreign workers in companies engaged in industry, the use of foreign workers in Indonesia has been arranged in detail in a Ministerial Decree. For your reference, some of the following Ministerial Decisions may be useful regarding the use of foreign workers in Indonesian companies:

• Decree of the Minister of Manpower and Transmigration Number 14 of 2015 which regulates positions that can be occupied by foreign workers in the category of processing industry (a sub-category of the furniture industry).
• Decree of the Minister of Manpower and Transmigration No. 15 of 2015 which regulates positions that can be occupied by foreign workers in the category of the processing industry, (a sub-category of the footwear industry).
• Decree of the Minister of Manpower and Transmigration Number 17 of 2015 which regulates positions that can be occupied by foreign workers in the category of processing industries (sub-categories of cigarette and cigar industries).
• Decree of the Minister of Manpower and Transmigration Number 26 of 2015 which regulates positions that can be occupied by foreign workers in the category of processing industry (a sub-category of the sugar industry).
• Decree of the Minister of Manpower and Transmigration Number 357 of 2013 which regulates positions that can be occupied by foreign workers in the category of processing industry in the apparel industry.
• Decree of the Minister of Manpower and Transmigration Number 359 of 2013 which regulates positions that can be occupied by foreign workers in the category of processing industries of the basic goods industry of non-machinery and equipment.

All ministerial decisions above have legal provisions in Indonesia and must be obeyed by companies that want to employ foreign workers in Indonesia.

Can the Foreign Workers Occupy Director Positions in Indonesian Company?

As a matter of fact, yes! They can!

The Decree of the Minister of Manpower and Transmigration of the Republic of Indonesia Number 40 of 2012 concerning Certain Positions that Are Forbidden to be Occupied by Foreign Workers clearly states the list of positions that are not permitted to be occupied by foreign workers.

By referring to the regulation and the ministry decisions mentioned above, it can be concluded that foreign workers may serve as directors in Indonesian companies (except the position of personnel director).

Lastly, it is very important to note that not all director positions in Indonesian companies are open to foreign workers. Some companies may prefer to use experts from within the country to gain trust from the community.

Related article: Job Availability and Restrictions for Workers of Foreign Citizenships in Indonesia