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Legal Updates | Indonesian Manpower Regulation: New Procedure on Mandatory Employment Reporting

The Indonesian Ministry of Manpower has issued a new regulation that is meant to improve the registration process and enhance legal protections for workers. What this means for employers is new reporting procedures, including the online submission of mandatory manpower reports.

New Manpower Regulation

Minister of Manpower Regulation No. 18 of 2017 ("Regulation 18/2017”) regarding Procedures for Online Mandatory Manpower Reports was issued in November. It is an implementing regulation of Law No. 7 of 1981 (“Law 7/1981”) and replaces a 2006 regulation on the manual submission of manpower reports.

Main Provisions of New Regulation

Regulation 18/2017 introduces a number of changes including the online submission of reports and the time periods for the submission of reports. It also introduces changes to how data from submitted reports are handled.

New Online Reporting

Article 3 of Regulation 18/2017 stipulates that mandatory manpower report will now be submitted to the Ministry of Manpower website, http://wajiblapor.kemnaker.go.id (the “Website”). Reports were previously submitted through the SINLAPNAKER system or manually through the post.

Report Deadlines

In a change from the previous regulation, Regulation 18/2007 divides the manpower reports into three categories: Annual Report, Event A Report and Event B Report.

Under Article 5 of Regulation 18/2017, the deadlines for the submission of the different reports are as follows:

  • Annual Report: Every December
  • Event A Report: 30 days after a company’s establishment, recommencement of operations or a transfer involving either a change of address or a change in ownership
  • Event B Report: 30 days prior to a transfer involving either a change of address or a change in ownership, the suspension of business activities or the dissolution of the company

There is no charge for submitting the online manpower reports.

Registration Procedures

Prior to submitting a report, the person handling the submission for the company must register for an account through the Website, providing the required company information and setting up a username and password.

Management of Data

Pursuant to Article 11 of Regulation 18/2017, data from submitted manpower reports can be used for several purposes, including to help in the formulation of government policies at the national and local levels, and as a reference point for local offices of the Ministry of Manpower in charge of supervising employers.

The data shall be managed by the Agency for Policy Planning and Development (Badan Perencana dan Pengembangan Kebijakan) and can be accessed through the Employment Data and Information Center (Pusat Data dan Informasi Ketenagakerjaan).

Sanctions and Transitional Provisions

An official at the Ministry of Manpower will be in charge of supervising compliance with the reporting requirements under Regulation 18/2017. Companies that fail to comply shall be subject to sanctions under Law 7/1981, which include imprisonment for a maximum of three months and/or a maximum fine of 1 million IDR. The managers listed in the Articles of Association of the business entity failing to comply with the reporting requirements shall be held liable.

Companies have one year from the issuance of Regulation 18/2017 to begin submitting manpower reports in accordance with the provisions of this new regulation.

SSEK - 9th February 2018

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Indonesia Snapshot

Capital: Jakarta
Population: 259 million (2016)
Currency: Indonesian Rupiah
Nominal GDP: $936 billion USD (IMF, 2016)
GDP Per Capita: $3,620 USD at Current Prices (IMF, 2016)
GDP Growth: 5.0% (2016)
External Debt: 36.80% of GDP (BI, Q2 2016)
Ease of Doing Business: 91/190 (WB, 2017)
Corruption Index: 90/176 (TI, 2016)