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EuroCham, along with other foreign bilateral chambers, attended a public consultation on the draft amendment to Minister of Manpower Regulation No. 8 of 2021, which serves as the implementing regulation of Government Regulation No. 34 of 2021 on the Use of Foreign Workers. This discussion has been a major topic within the HR Working Group due to its potential impact on European businesses and their European employees based in Indonesia.

The consultation discussed the implementation of the regulation and covered several provisions relating to the employment of foreign workers (Tenaga Kerja Asing – TKA) in Indonesia, including: obligations and prohibitions for employers of TKA; approval of Plans for the Utilization of Foreign Workers (Rencana Penggunaan Tenaga Kerja Asing – RPTKA); stay permits; education and training; reporting, guidance and supervision; sanctions; funding; and other miscellaneous provisions.

EuroCham, together with other chambers and associations, continues to monitor the development of the draft regulation and advocate on behalf of our members, including by providing input to the Ministry of Manpower on issues that may affect businesses and foreign employees in Indonesia.

Indonesia's new Standard Industrial Classification (KBLI 2025) changes the business activity codes under which companies are licensed. For the freight forwarding sector (Jasa Pengurusan Transportasi, JPT), re-coding, splitting or merging of former codes can change a company's risk level, license type and verification requirements, with direct implications for European logistics and trade companies operating in Indonesia.

EuroCham's Market Access Working Group attended a public consultation seminar organised by ALFI on the impact of KBLI 2025 on the JPT sector, and held a meeting with the Directorate of Sea Traffic and Transportation at the Ministry of Transportation. EuroCham has also sent a letter to the Minister of Transportation and the Directorate seeking clarification on how KBLI 2025 will be implemented for JPT businesses.

EuroCham is now exploring a policy meeting with the relevant directorate at the Ministry, and Working Group leaders are agreeing on the next steps in the advocacy strategy. Members affected by licensing changes under KBLI 2025 are welcome to share their experiences with the Market Access Working Group.