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Jokowi launches new regulation on foreign workers employed in new capital

Source
Tempo - August 16, 2024

Ikhsan Reliubun, Jakarta – President Joko Widodo or Jokowi released a regulation permitting foreign workers to work in Nusantara Capital City or IKN in North Penajam Paser, East Kalimantan.

Local workers' assistance is required for foreign workers, as stipulated under Government Regulation Number 29 of 2024 on the amendments to regulation on Granting of Business Licensing, Ease of Doing Business, and Investment Facilities for Business Entities in IKN.

"Every business entity who employs foreign workers is required to appoint Indonesian workers as companions for foreign workers," as quoted from Article 22 paragraph 2b point a.

In addition, in point b, the regulation provided that business actors or investors who employ foreign workers must provide education and job training for local workers who will assist the foreign workers according to the qualifications of the foreign workers' positions.

Next, business actors are required to repatriate foreign workers to their home countries after the work agreement ends. The business actors who are allowed to employ foreign workers are business entities in IKN.

"Business actors who employ foreign workers, including those carrying out strategic government projects in IKN are exempt from the obligation to pay compensation funds for the foreign workers within a certain period," reads Article 22 paragraph 3.

The IKN Authority Head regulation will determine the period length for compensation funds exemption.

Jokowi inked the IKN investors' business licensing and ease of business regulation on August 12, 2024, coinciding with the first Cabinet Meeting in IKN.

Source: https://en.tempo.co/read/1904616/jokowi-launches-new-regulation-on-foreign-workers-employed-in-new-capita

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