29 April 2008

Indonesia and Foreign Labor

There are lots of expatriates in Indonesia. However, this is just an impression as I have not yet bothered to enquire of the Indonesian immigration services as to exact numbers but I will over the next couple of days! There are probably many expats who have a horror or perhaps even a funny story related to the trials and tribulations that are working in Indonesia and dealing with Indonesian immigration officials.

However, some of these stories probably relate to the incompetent businesses and companies that often employ them and as often seek to circumvent the applicable rules such as paying the USD 100 per month foreigner tax or employing someone in a different capacity to that which was claimed in the application process.

A recent decision from the Industrial Relations Court had opportunity to canvass some of these issues and the decision that was handed-down apparently does very little to clarify the position of expatriate labor in Indonesia but in fact makes any foreigner employed in Indonesia susceptible to the strong-armed tactics of employers. The applicant in this case is a foreigner and the claim was that more than 30 violations of the Indonesian Employment Law (Law No. 13 of 2003) were committed in the recruiting, hiring, and subsequent firing of this person.

As I said, I have not seen the decision yet and will not comment definitively until I have. But if the grapevine is true to its word, and it usually is, then this is a story I will post more on when I have it. Apparently, the decision is going to be appealed so perhaps there will be more wide-spread media coverage of the nitty gritty details for us to peruse.


Patung said...

Is this the Jakartass case? Not sure if that one has come to a conclusion yet.

Rob Baiton said...

Yep...it has come to a conclusion and is now on appeal.

I will write a more detailed update once the appeal is done or I see more of the documentation.