FREQUENTLY ASKED QUESTIONS ON INVESTMENT - BKPM
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FREQUENTLY ASKED QUESTIONSon InVestment
5
LIST OF CONTENT
Foreword ............................................................................................................. 6
CHAPTER 01
Indonesia ........................................................................................................... 8
CHAPTER 02
Investment Opportunities .............................................................................. 14
Priority Sectors .............................................................................................. 16
Special Economic Zones ................................................................................ 18
CHAPTER 03
Investment Procedures ................................................................................... 20
Starting Business ........................................................................................... 22
Getting Licenses ........................................................................................... 27
One Stop Service Center ............................................................................... 28
Priority Service .............................................................................................. 29
Investment Incentives .................................................................................... 32
CHAPTER 04
Investment Related Aspects ........................................................................... 38
Labor ............................................................................................................ 40
Land Ownership ........................................................................................... 54
Taxation ....................................................................................................... 57
Immigration .................................................................................................. 60
Trade ............................................................................................................ 65
CHAPTER 05
Government Support ...................................................................................... 70
Related Government Agencies ...................................................................... 72
BKPM ........................................................................................................... 77
Indonesia Investment Promotion Center (IIPC) ............................................... 78
INDONESIA INVESTMENT COORDINATING BOARD
6
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
BAHLIL LAHADALIA
Chairman of Indonesia Investment
Coordinating Board (BKPM)
INDONESIA INVESTMENT COORDINATING BOARD
7
FOREWORD
Indonesia economy continues to offer investment licensing service. Second,
vast potential thanks to the country’s an end-to-end service for investors,
sustainable economic growth, political starting from earlier until commercial
stability, large young population stage, including facilitation during the
and growing middle class, as well as process of investment realization. And
abundant natural resources. Investment finally, improvements of investment
has a large multiplier effect in boosting climate, among others by providing
economic growth, creating job more attractive incentives and facilities
opportunities, and shifting the current for investors.
consumption-based economy to an
economy driven by production. As a part of our efforts to improve
investment service, BKPM took an
Therefore, as a government agency initiative to publish “Frequently Asked
and primary interface between the Questions (FAQ) on Investment in
government and investors, as well as Indonesia” book. This book compiles
service provide assistance related to the answers for both new and existing
investment, the Indonesia Investment investors regarding investment licensing
Coordinating Board (Badan Koordinasi procedures, incentives, regulations,
Penanaman Modal or BKPM) has a labors, and cost of doing business in
role in improving investment climate Indonesia. We hope this book could
and inviting “smart investment” to the serve as a guidance for investors
archipelago. to have a better understanding on
investing and doing business in
Government of Indonesia has a strong Indonesia.
reform agenda and since January
2015, several policies have been Finally, we invite you to explore the
implemented. First, the One Stop opportunities Indonesia offers to your
Service Centre (Pelayanan Terpadu Satu business and BKPM is ready and more
Pintu) at BKPM aimed at providing a than happy to assist you to invest in
faster, simpler, and more transparent Indonesia.
INDONESIA INVESTMENT COORDINATING BOARD
CHAPTER I Indonesia
10
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
QUESTION 1
What makes Indonesia the promising
destination for investment?
ANSWER :
Indonesia is the fourth most populous reforms. Worldwide Governance
country in the world with young work Indicators Survey conducted by World
force and a large and growing domestic Bank indicated that Indonesia has
market due to the demographic bonus, improvements in several indicators
making Indonesia one of the world's such as Government Effectiveness,
leading economies. Regulatory Quality, and Control of
Corruption.
Despite heightened global uncertainty,
Indonesia’s economic outlook continues Indonesia has progressed in Ease of
to be positive, with domestic demand Doing Business over the past few years,
being the main driver of growth. with rank of 73 among 190 economies
Supported by robust investment, stable in ease of doing business 2019. In
inflation, and a strong job market, addition to that, Indonesia has leaped
Indonesia’s economic growth is to the fourth place, from previously
forecast to reach 5.2% in 2020. on the eight place, as a prospective
investment destination 2017-2019
As the only G-20 member in Southeast based on the survey of the United
Asia and an active voice to develop Nations Conference on Trade and
world concerns, Indonesia plays a Development (UNCTAD).
more significant role in the global
stage. Standard Chartered foresees Indonesia has abundant of natural
Indonesia's entry into the G-7 by resources. It also has the second
2030, and projects that the Indonesian highest biodiversity level in the world
economy could become the 10th largest after Brazil. Aside from the flora and
by 2020 and the 5th largest by 2030. fauna, Indonesia is a home to many
ecosystems. From beaches, small
Being the world’s 3rd largest islands, coral reefs, seaweed beds,
flourishing democracy with the largest sand dunes, tidal flats, coastal mud,
Muslim populations, Indonesia has mangroves and others make Indonesia
a stable policy situation with high the most attractive place for investment
commitment to implement structural especially in the tourism sector.
INDONESIA INVESTMENT COORDINATING BOARD11
QUESTION 2
How is the global perspective on investing
in Indonesia?
ANSWER :
- Three of four US companies in Doing Business (World Bank’s 2018
Indonesia plan to expand their survey).
business (AmCham’s and US
- Indonesia is one of the most
Chamber of Commerce’s survey,
attractive investment destinations
2017).
in Asia due to strong consumer
- Indonesia still becomes main demand and its improvements on
investment destinations in APEC investment and business climate
region, together with Vietnam and (Economist Corporate Network
China (PwC’s APEC CEOs survey, survey, 2017).
2017).
- Indonesia’s growth (GDP) is
- Indonesia is the fifth most promising estimated to remain strong among
country for overseas business (Japan other countries. Its GDP is also
Bank for International Cooperation’s predicted to rise to 5.4 percent in
survey, 2017). 2018 and 5.5 percent in 2019 from
5.1 percent in 2017. In addition,
- Indonesia becomes priority for Indonesia’s Long Term Foreign and
investment country in Asia, Local Currency Issuer Default Rating
following China. And also has has increased to BBB from the
the highest confidence of positive previous BBB- with a stable outlook
reforms (The Economist’s Asia (Fitch Ratings, 2018).
Business Outlook Survey 2017).
- Indonesia has a big economy and
- Indonesia ranked fourth as the most business opportunities as it named
prospective country for investment as Top-20 largest GDP current price,
by MNEs in 2017-2019, after the worth over USD 1.015 in 2017 (IMF,
US, China and India (UNCTAD 2018) and has been included in the
Business Survey 2017). trillion-dollar club, countries with
- Indonesia was named Top Reformer GDP more than USD 1 trillion per
in Asia for reforming its Ease of year (SEASIA, 2017).
INDONESIA INVESTMENT COORDINATING BOARD12
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
QUESTION 3
How has the infrastructure been
developed in Indonesia?
ANSWER :
The challenges with Indonesian allocated for infrastructure increased
infrastructure have a lot to do with the more than doubled in the last five years
geographical realities in the country, as and private sector’s contribution is
a vast archipelago. The fiscal budget strongly encouraged and facilitated.
INDONESIA INVESTMENT COORDINATING BOARD13
The Government has issued several Pemerintah dan Badan Usaha or
policies, including the provision KPBU) project’s construction cost. In
of government guarantees, land addition, the government established
acquisition for development projects, some financial institutions to help
and viability gap fund for part of Public- finance PPP projects and increase their
Private Partnerships or PPP (Kemitraan bankability.
INDONESIA INVESTMENT COORDINATING BOARDCHAPTER II Investment Opportunities
16
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
PRIORITY SECTORS
QUESTION 4
What sector is recommended
to invest in Indonesia?
ANSWER :
As of 2015, Indonesian Government priorities sectors were selected based
has laid the new focus on several on the economic advantages, growth
business sectors as planned in The factors and productivity aspects. The
Investment Strategic Planning for sectors are as follows:
the period of 2015 – 2019. These
BKPM PRIORITY SECTORS 2019 - 2024
35 GW power Multimode
lnfrastructure 24 Sea ports
generation Transportation
Agriculture Food estate Corn Plantation Cattle Salt
Labor-intensive Food &
Textile Furniture Footwear Lifestyle
industry Beverages
Import-
Chemical & Defense
substitution Iron & SteeI Engine Component
Pharmaceutical Industry
industry
Industry
Export-oriented CPO & Derivative Wood Products, Pulp
Electronics Automotive
industry Products & Paper
Downstream
industry of natural Cacao Sugar Smelter
resources
Maritime Ship Building Cold Storage Marine Technology
14 Priority 10 Tourism
Tourism, SEZ & Industrial
10 Tourism SEZ 8 Existing SEZ 7 New SEZ Industrial Priority
Park
Parks Destination
Financial IT Based Creative
Digital Economy e-Commerce
Technology Economy
Most industries and other business investment list or DNI”. This regulation
fields in Indonesia are open for attaches to the Investment Law under
foreign investments unless mentioned Presidential Regulation No. 44 Year
otherwise in the Investment Guidance 2016
or previously called the “negative
INDONESIA INVESTMENT COORDINATING BOARD17
QUESTION 5
Why are certain investment
sectors prioritized?
ANSWER :
Investment together with Second, creating jobs, improving
manufacturing industry and export are productivity and competitiveness.
expected to be the pillars of Indonesian Investment in manufacturing
economy. There are three aspects sectors is prioritized, especially labor
where investments shall contribute the intensive industry, export-oriented
most to the economy. and import-substitution industry, and
also downstream industry of natural
First, supporting sustainable economic resources.
growth. We seek quality investments,
that do not only see Indonesia as a Third, promoting equal development
market, but also as a production base. distribution. We encourage more
Investments that add value to our investments realized outside Java
natural resources, contribute to our Island, the most populated island in
export and substitute our import. We Indonesia. We offer more incentives
also seek responsible investments that especially to investments located in
considering enironmental and social eastern part of Indonesia, such as Nusa
factors to embrace long term benefit. Tenggara, Maluku, and Papua.
INDONESIA INVESTMENT COORDINATING BOARD18
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
SPECIAL ECONOMIC ZONES
QUESTION 6
How is the development of Special
Economic Zones (SEZ) in Indonesia?
ANSWER :
Currently, there are 15 Special F. Arun Lhokseumawe SEZ in Aceh
Economic Zones (SEZ) in Indonesia. Province, for oil and gas industry,
Each of SEZs is developed for specific petrochemical, agro industry,
sectors. The existing SEZs are: logistics, and paper industry (already
operated in December 2018).
A. Tanjung Lesung SEZ in Banten
Province, for tourism (already G. Galang Batang SEZ in Riau Island
operated in February 2015). Province, for mineral processing
industry, energy, and logistics
B. Sei Mangkei SEZ in North Sumatera (already operated in December
Pryearovince, for CPO and rubber 2018).
industry, fertilizer industry, logistics,
and tourism (already operated in H. Tanjung Kelayang SEZ in Bangka
December 2016). Belitung Island Province, for tourism
(already operated in March 2019).
C. Mandalika SEZ in West Nusa
Tenggara Province, for tourism I. Maloy Batuta SEZ in East Kalimantan
(already operated in September Province, for CPO, wood, coal, and
2017). mineral industry (already operated
in April 2019).
D. Palu SEZ in Center of Sulawesi
Province, for smelters, agro industry, J. Bitung SEZ in North Sulawesi
and logistics (already operated in Province, for fishery and agro
September 2017). industry, and logistics (already
operated in April 2019).
E. Tanjung Api-Api SEZ in South
Sumatera Province, for Crude Palm K. Morotai SEZ in Maluku Province, for
Oil, rubber downstream industry, tourism, manufacturing industry,
and petrochemical industry (already and logistics (already operated in
operated in June 2018). April 2019).
INDONESIA INVESTMENT COORDINATING BOARD19
L. Sorong SEZ in West Papua Province, N. Kendal SEZ in Central Java,
for tourism, industrial shipyards, for manufacturing industry,
fisheries processing industry, mining textile industry, logistic (under
industry, and logistics (already development).
operated in October 2019).
O. Likupang SEZ in North Sulawesi, for
M. Singhasari SEZ in East Java, for tourism (under development).
tourism, creative industry (under
development).
INDONESIA INVESTMENT COORDINATING BOARDCHAPTER III Investment Procedures
22
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
STARTING BUSINESS
QUESTION 7
I want to invest in Indonesia. What are the
basic things I should know first?
ANSWER :
To establish a foreign business sector which you are
direct investment company interested in is not regulated, and
in Indonesia you must first decide no other restrictions from related
what business sector you are technical ministries, then it means the
going to invest based on Klasifikasi business sector is open for foreign
Baku Lapangan Usaha Indonesia direct investment with a maximum
“KBLI” (Indonesian Classification for foreign ownership of 100%.
Business Sector).
The legal entity of the FDI Company
Then, you must check whether should be a Limited Liability Company
the business sector is open with or Ltd. Perseroan Terbatas or PT.The
requirements or closed for foreign ‘PT’ company should be owned by
direct investment based on minimum 2 shareholders. Those can be
the Presidential Regulation No. 44 individual or corporate shareholders or
Year 2016 about “DNI” (Negative combination of both.
Investment List). If the
INDONESIA INVESTMENT COORDINATING BOARD23
QUESTION 8
How much is the minimum investment
for an FDI company?
ANSWER :
The minimum investment for an FDI company is above IDR 10 billion (excluding
land and building cost), while the minimum paid up and issued capital is IDR 2.5
billion. For each shareholder, at least IDR 10 millions or its equivalent in USD is
required.
QUESTION 9
Can I set up a company in
any location in Indonesia?
ANSWER :
Yes, you can set up a company in any 9,950 manufacturing companies
part of Indonesia. However, there are operating and these figures do not
restrictions for some business sectors include industrial estates non HKI
in certain regions, Industrial Law members.
No. 3 Year 2014 and Government
Regulation No. 142 Year 2015 has Main attractions of industrial
mandated that any industrial activities estates are that the development is
shall be located in industrial estates. comprehensively planned to assure
a strategic location, accessibility,
Today, the Indonesian Industrial Estates building ratio, infrastructure and
Association (Himpunan Kawasan supporting services, secured land
Industri Indonesia or HKI) has 87 titles, and continuous maintenance
company members, in 18 provinces, and operation management, as
covering total gross area of about well as integrated enviromental
86,059 hectares. There are more than management.
INDONESIA INVESTMENT COORDINATING BOARD24
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
QUESTION 10
How do I establish a company in Indonesia?
ANSWER :
The process of company establishment in Indonesia requires Investor to issue
Article of Association and legalization of the company, including Taxpayer
identification number (NPWP), through Public Notary.
INDONESIA INVESTMENT COORDINATING BOARD25
QUESTION 11
Other than setting up a company (PT. PMA),
is there any other method to evaluate
Indonesian market?
ANSWER :
Foreign investor could set up a Guidelines for Licensing and Investment
Representative Office to study the Facility. To obtain the Representative
market. Foreign Representative Office Office license, all requirements should
“KPPA” is an office incorporated by be submitted online at Online Single
an overseas company to represent Submission (OSS) system.
themselves in Indonesia. The functionality of KPPA is limited to:
Foreign Representative Office usually A. Manage the parent company’s
has limited functionalities and are corporate interests.
generally prohibited from directly
engaging in operational activities, B. Prepare the establishment and
signing contracts, issuing official development of its business in
invoices, receiving payments from its Indonesia.
clients, and directly engaging in any
other profit generating activities. Important Notes for KPPA:
The requirement and procedure A. KPPA can only be incorporated in
to form a representative office in capital of Indonesian provinces (e.g.
Indonesia are governed by BKPM Jakarta, Bandung, Surabaya, Medan
Regulation No. 6 Year 2018 as Denpasar, etc.).
amended by BKPM Regulation No. 5 B. The location of KPPA must be in
Year 2019 regarding Procedures and office building.
INDONESIA INVESTMENT COORDINATING BOARD26
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
QUESTION 12
How do I open a bank account?
ANSWER :
The regulation of Central Bank of Indonesia stated that all banking transactions
(such as capital injections, administration of loans, payment of capital equipments,
raw materials and others) of a newly established PT. PMA should be administered
through a special foreign investment bank account in Indonesia. The required
documents to open such account are as follows:
1. Registration Number (NIB), the Deed 3. Citizen Identification Card (KTP) or
of Establishment, Company Domicile passport of the authorized person to
Certificate (Surat Keterangan Domisili open the bank account.
Perusahaan or SKDP), Taxpayer
identification number (NPWP). 4. Photograph of the authorized person
to open the bank account.
2. The power of attorney, specifically
required for person who is 5. Minimum deposit of IDR 10 million
authorized to open the bank or USD 1,000.
account.
INDONESIA INVESTMENT COORDINATING BOARD27
GETTING LICENSES
QUESTION 13
What licenses are required to start a business?
ANSWER :
Basically, to start a business in These licenses can be processed through
Indonesia, the company should obtain Online Single Submission (OSS) system
following licenses: (www.oss.go.id), an online system
created by the Government of Indonesia
A. Single Business Number “NIB” to simplify the application of business
license and other permits.
B. Business License “Izin Usaha”
All new and existing individuals or
C. Commercial/Operational License
business entities (include MSMEs), and
“Izin Komersial/Operasional”
representative offices can get their
business licenses through the OSS system.
QUESTION 14
Are there any guidelines and procedures
to get business license in Indonesia?
ANSWER :
Permit, Environmental Permit, and
Yes, there are. The guidelines are
Commercial/Operational License.
available in Bahasa Indonesia, and can
be found on the OSS website (www. 3. Businesses fulfil the commitments
oss.go.id) in Informasi’s sub-section, of licenses and permits required by
‘Petunjuk Teknis Pengisian’. technical ministries/agencies and
regional governments.
Procedure to get a business license:
4. Businesses make the required
1. Businesses register through the OSS
payments of Non-Tax State Revenue
system.
(PNBP) or regional levies.
2. The OSS system will issue
5. Licenses issued by the OSS system
Business Identification Number
will be activated.
(NIB), Business License, Location
INDONESIA INVESTMENT COORDINATING BOARD28
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
QUESTION 15
Do I have to register for licenses at BKPM?
ANSWER :
Business licenses can be applied online Regarding the sectoral business
through OSS except for several sectors. licenses, PTSP Pusat has 3 types of
The excluded sectors are finance, services, they are:
mining (oil and gas, mineral and coal,
1. Self Service
and geothermal), and property. For
these sectors, licenses can be applied 2. Assistance Service
through One Stop Service Center
(Pelayanan Terpadu Satu Pintu or PTSP 3. Priority Service
Pusat) BKPM.
Other than that, PTSP Pusat also
provides consultation and complaint
services.
ONE STOP SERVICE CENTER
QUESTION 16
What is One Stop Service Center
or “PTSP Pusat” ?
ANSWER :
PTSP Pusat at BKPM is established to ministries and government institutions
provide a simple, faster, transparent that provide consultation and accept
and integrated service for starting application for business licenses which
business in Indonesia. are not included in the OSS.
At PTSP Pusat, there are
Representative Officers from 22
INDONESIA INVESTMENT COORDINATING BOARD29
QUESTION 17
What services are provided at PTSP Pusat?
ANSWER :
One Stop Service Center (PTSP Pusat) in 4. Facilitating the problems faced
BKPM offers activities such as: by investors in realizing their
investment in Indonesia.
1. Serving information and
consultation on investment policies 5. Synchronizing and coordinating
in a specific sector. with related Ministries/Institutions
including with provincial, regency/
2. Serving business license applications city governments, administrators
which are not regulated in of Special Economic Zones (SEZs),
Government Regulation Number and Free Zone Authority.
24 Year 2018 regarding Online
Integrated Business Licensing 6. Providing priority service for
Service. eligible investors in obtaining
business licenses (Layanan
3. Clarifying the procedure of business Prioritas).
licensing application through the
OSS system (Layanan Berbantuan).
PRIORITY SERVICE
QUESTION 18
What is Priority Service?
ANSWER :
Priority Service or “Layanan Prioritas” is a service provided for eligible investors
who meet requirements.
INDONESIA INVESTMENT COORDINATING BOARD30
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
QUESTION 19
What kind of license that I will obtain
through Priority Service?
ANSWER : 3-Hour Energy and Mineral Resources
(ESDM)
Through Priority Service, investors will
obtain: 8 Types of licenses :
1. Deed of establishment of the 1. Temporary Business License for Oil/
company Fuel/LPG Storage
2. Legalization from the Ministry of 2. Temporary Business License for
Law and Human Rights Storage of Processed Products/CNG
3. Taxpayer identification number 3. Temporary Business License for LNG
“NPWP” Storage
4. Single Business Number “NIB”, 4. Temporary Business License for Oil
which also function as: Company Refinery
Registration Number “TDP”,
Importers Identification Number 5. Temporary Business License for
“API”, and Custom Access “Akses Processing Oil Residue Industry
Kepabeanan” 6. Temporary Business License for
5. Foreign Workers Utilization Plan Natural Gas Processing
“RPTKA” for workers (outside 7. Temporary Business License for
shareholders) General Trade of Oil/Fuel
8. Temporary Business License for
General Trade of Processed Products
INDONESIA INVESTMENT COORDINATING BOARD31
QUESTION 20
What are the requirement for Priority Services?
ANSWER :
The requirement to get this service are: 2. Certain manufacturing lines of
business that are part of a supply
1. Planned value of investment at least chain, by showing Statement Letter
IDR 100 billion, and/or absorbing at orMoU as a supplier for company
least 1,000 local workers. who will use the products.
2. The investor come in person to PTSP 3. Companies will be domiciled in a
Pusat at BKPM, and if a candidate Special Economic Zone.
of shareholder represents other
shareholders, he/she has to bring 4. Companies participate in tax
the letter of authorization. amnesty programs, by showing
evidence of the tax amnesty
The exemption from the above criteria submission receipt issued by the
are valid for: Minister of Finance or the relevant
appointed official.
1. Certain manufacturing lines of
business, or be domiciled in certain Priority Service for ESDM Sector:
areas that fall under an inland free
trade arrangement in accordance No requirements
with the prevailing regulations.
INDONESIA INVESTMENT COORDINATING BOARD32
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
INVESTMENT INCENTIVES
QUESTION 21
Is there any fiscal facility offered by
government for foreign investors?
ANSWER :
Yes. Indonesian Government provides purpose of 2 years full production
investment incentives as follows: (accumulated production time).
- BKPM Regulation No. 6 Year 3. The importation to the extant of
2018 as amended by BKPM machines, goods and materials
Regulation No. 5 Year 2019 and which:
Ministry of Finance Regulation
- Are not produced in Indonesia
No. 176/PMK.011/2009 as
amended by Ministry of - Are produced in Indonesia but
Finance Regulation No. 188/ they don’t meet the required
PMK.010/2015, explained : specifications
All of FDI and Domestic Direct - Are produced in Indonesia but
Investment or DDI (Penanaman Modal the quantity is not sufficient for
Dalam Negeri or PMDN) projects which the need of the industry
are issued by the OSS system will be According to the Regulation of
granted the exemption of Import Minister of Finance No. 66/
Duty, with the final tariffs become 0% PMK.010/2015, the exemption of
(zero percent). This facility would be import duty will also be granted to
applicable on: the importation of capital goods of
1. The importation of capital goods electricity for an import period of
namely machinery, equipment, and 2 years and can be extended by a
auxiliary equipment for an import maximum 1 year. This facility is not
period of 2 years, started from the applicable for transmission, distribution,
date of stipulation decisions on supporting services and repairing
import duty relief. equipment.
2. The importation of goods and As stated in the Regulation of
materials or raw materials regardless Minister of Finance No. 259/
of their types and composition, PMK.04/2016, the importation of
which are used as materials or goods in term of Contract of Work or
components to produce finished CoW (Kontrak Karya or KK) or Coal
goods or to produce services for the Mining Business Work Agreement
INDONESIA INVESTMENT COORDINATING BOARD33
(Perjanjian Karya Pengusahaan - Company located in Industrial
Pertambangan Batubara or PKP2B) Area and/or Bonded Zone;
will be granted the exemption and/
- Company operating in renewable
or relief from import duty based on
energy sector;
the owned contract. The application
can be requested by attaching - Company issuing the cost for
recommendation letters from the economic and/or social
Directorate General of Mineral and infrastructure in business location
Coal, Ministry of Energy and Mineral at the least of 10 billion rupiah;
Resources of the Republic of Indonesia. - Company using materials and/
Tax Allowance based on or domestic result component at
Government Regulation No.78 Year least 70% since the second year;
2019, regarding to Income Tax - Company hiring at least 300 or
Facilities for Capital Investment in 600 Indonesian workforces for 4
Certain Business Fields and/or in consecutive years;
Certain Regions, the domestic and
foreign investors will be granted for - Company issuing the cost
tax allowances in certain business fields of domestic research and
and/or regions. development in order to product
development or production
Facilities provided by the Government efficiency at least 5% from the
Regulation No. 78 Year 2019 are: total capital investment for 5
1. Reduction of net income by 30% years period;
of the total investment in the form - Company undertaking export at
of tangible fixed assets, including least 30% from the sales total
any land used for the business main value, for the capital investment
activities, shall be charged for 6 in certain business fields that are
years, respectively of 5% per year carried out outside of the bonded
calculated from the commencement zone.
of commercial production.
For detailed information on the list of
2. Accelerated depreciation on business sectors that are eligible for
tangible assets and amortization Tax Allowance, please refer to the
on intangible assets acquired in the Attachment I & II of Government
framework of investment. Regulation No. 78 Year 2019. There
3. The imposition of income tax on are 166 business fields listed in
dividens paid to any non-resident Attachment I and 17 business fields
taxpayer other than a permanent listed in Attachment II.
establishment in Indonesia. Note:
4. Loss compensation for more than 5 The application and provision for tax
years but not more than 10 years, allowance will be carried out online
for: through the OSS system.
INDONESIA INVESTMENT COORDINATING BOARD34
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
QUESTION 22
What about tax holiday for foreign investors?
ANSWER :
According to the Regulation of forestry without or with their
Minister of Finance No. 150/PMK. integrated derivatives;
010/2018 and the Regulation of
BKPM No. 1 Year 2019 as amended E. industry of basic inorganic
by Regulation of BKPM No. 6 Year chemicals without or with their
2019, reduction in Corporate Income integrated derivatives;
Tax (Tax Holiday) is given at 100% F. industry of main raw materials
(one hundred percent) of the amount of pharmaceutical without
of the Corporate Income Tax owed or with their integrated
with minimum new investment IDR derivatives;
500 billion and at 50% (fifty percent)
with minimum new investment G. irradiation, electro-medical,
between IDR 100 billion – IDR 499 or electrotherapy equipment
billion. manufacturing industry;
The applicant or company should H. manufacturing industry of main
meet the following criteria: components of electronics
or telematics devices, such
1. The Pioneer Industry: as semiconductor wafers,
A. upstream base metal industry backlight for Liquid Crystal
(iron and steel or non-iron and Display (LCD), electrical driver,
steel) without or with their or display;
integrated derivatives; I. machinery and machinery main
B. oil and natural gas purification components manufacturing
or refining industry without industry;
or with their integrated J. industry of robotic components
derivatives; that supports machines
C. petroleum-based manufacturing industry,
petrochemical, natural gas or K. power plant main components
coal industry without or with manufacturing industry;
their integrated derivatives;
L. motor vehicle and motor
D. industry of basic organic vehicle main components
chemicals sourced from manufacturing industry;
agricultural, plantation, or
INDONESIA INVESTMENT COORDINATING BOARD35
M. vessel main components 4. Having not yet been issued a
manufacturing industry; decision regarding the granting of
a notification or concerning the
N. train main components refusal to reduce the Corporate
manufacturing industry; Income Tax by the Minister of
O. industry of aircraft main Finance.
components and aerospace 5. Fulfill the provisions of the
industry supporting activities; amount of the ratio between
P. agricultural, plantations, debt and capital as referred to in
or forest product-based the Regulation of the Minister of
processing industry producing Finance concerning determining
pulp without or with their the amount of the ratio between
derivatives; debt and company capital for the
purposes of calculating Income
Q. economic infrastructure; or Tax;
R. digital economic which includes The period of the reduction is
data processing, hosting, and provided with the following
activities associated with them. conditions:
2. Having status as Indonesian 1. 5 (five) tax years for new
Private/Public Company investment with a value of
investment plan of at least IDR
3. Having a value of the new 500,000,000,000 (five hundred
investment plan of at least IDR billion rupiahs and a maximum of
100,000,000,000 (one hundred less than IDR 1,000,000,000,000
billion rupiahs); (one trillion rupiahs);
INDONESIA INVESTMENT COORDINATING BOARD36
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
2. 7 (seven) tax years for new 5. 20 (twenty) tax years for new
investments with an investment investments with the value of
plan value of at least IDR the investment plan at least IDR
1,000,000,000,000 (one trillion 30,000,000,000,000 (thirty trillion
rupiahs) and a maximum of less rupiahs).
than IDR 5,000,000,000,000 (five
trillion rupiahs); Note:
3. 10 (ten) tax years for new BKPM will publish “In Advance
investments with an investment Confirmation” which is a notification
plan value of at least IDR letter to investors regarding the
5,000,000,000,000 (five trillion fulfilment of the requirements of the
rupiahs) and maximum of less than pioneer industry to obtain a corporate
IDR 15,000,000,000,000 (fifteen income tax deduction facility for the
trillion rupiahs); investors who applied for it
4. 15 (fifteen) tax years for new List of business fields (Indonesia
investments with an investments Standard Industrial Classification-KBLI)
plan value of at least IDR of the pioneer industry can be seen
15,000,000,000,000 (fifteen trillion in the Attachment of the BKPM
rupiahs) and no more than IDR Regulation No. 6 Year 2019.
30,000,000,000,000 (thirty trillion
rupiahs);
INDONESIA INVESTMENT COORDINATING BOARD37
QUESTION 23
Besides fiscal facilities, is there any other
facility provided?
ANSWER :
GREEN LANE
Starting 2016, the government accelerates custom clearance process for imported
capital goods, aiming at speeding up project under construction. Capital goods
no longer need screening at the ports. So, it will cut the processing time from five
days to only 30 minutes.
WAGE FORMULA
Since September 2015, Indonesian government has issued several economic policy
packages, among others, to improve investment climate. We set a minimum wage
formula so investors can predict annual increase of wage, considering inflation and
economic growth.
OTHERS
We support business to reduce their production costs by cutting the price of fuel,
gas, and electricity for industry. We revised the Negative Investment List (DNI) to
be more open for foreign investment, specifically intended for industrial, creative
economy, and tourism sectors.
INDONESIA INVESTMENT COORDINATING BOARDCHAPTER IV
Investment
Related Aspects40
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
LABOR
QUESTION 24
What is the minimum wage in
Indonesia?
ANSWER :
In Indonesia, minimum wage is a monthly wage payable to labor. It mainly consists
of fixed basic wage that is stipulated by regional governors as a safety net.
QUESTION 25
What is the list of minimum wage
in Indonesia for the year of 20xx?
ANSWER :
The latest Government Regulation wage x (Inflation + % GDP annual
No. 78 Year 2015 regarding Wages increase during the year)
(GR 78) introduces several important
2. Wages must be paid in Rupiah The
changes, notably those concerning the
Article 21 of GR 78 requires that
calculation of provincial minimum wages
wages for all employees be paid in
and the requirement that all employees
Indonesian Rupiah and does not
in Indonesia be paid in Rupiah.
differentiate between foreign and
The main points of GR 78 are: local employees.
1. Minimum wage calculation in GR Wage scale and structure in GR
78 introduces a new formula for 78 requires employers to prepare
provinces to calculate their minimum a wage scale and structure
wage each year, beginning in 2016. for employees by taking into
The introduction of the formula consideration the group, positions,
should bring certainty to the annual years of service, education,
calculation of minimum wage and and competence of employees.
help create a more reliable business Employers must inform employees
climate. of this wage scale and structure, and
GR 78 requires that a copy of the
The new formula is as follows : wage scale and structure be attached
to company regulation registration or
New minimum wage = current
renewal applications.
minimum wage + (current minimum
INDONESIA INVESTMENT COORDINATING BOARD41
QUESTION 26
Is there any obligation for employer
to pay employees for provident fund
or other social security fund?
ANSWER :
Yes, based on Law of the Republic The new Social Security Agency
Indonesia No. 24 Year 2011, for Workers and/or Health (Badan
employer will have to contribute a Penyelenggara Jaminan Sosial untuk
certain share based on employee Ketenagakerjaan dan/ atau Kesehatan
monthly wage into the social security or BPJS-TK and BPJS-KS) will continue to
programme. The programme will ensure that employer takes part in the
provide economic assurance for every mandatory social security programmes
employee’s wellbeing. such as Pension Guarantee, Life
Insurance, and Work Accident Insurance.
Type Of Insurance Employer’s Contribution Worker’s Contribution
Workers (BPJS Ketenagakerjaan or BPJS-TK)
0.24% - 1.74% (depend on
Work accident None
job risk)
Death/life insurance 0.30% None
Old age 3.70% 2.00%
Pension* 2.00% 1.00%
Health (BPJS Kesehatan or BPJS-KS)
Health* 4.00% 1.00%
*) With a maximum salary cap of IDR 8,512,000
*) BPJS (Badan Penyelenggara Jaminan Sosial) or Social Security System
For more information on the details directly contact BPJS for Workers at
to social security pay-out structure, http://www.bpjsketenagakerjaan.go.id/
submission of application, working and BPJS for Health at https://bpjs-
details, and latest updates please kesehatan.go.id/bpjs/
INDONESIA INVESTMENT COORDINATING BOARD42
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
QUESTION 27
Can I employ foreigners in my company
and how many foreigners are allowed?
ANSWER :
Yes, in the framework of investment, 6. Foreign private company, foreign
foreigners are allowed to hold positions business entity
where there are no Indonesian
7. Legal Entity established under
nationals available, or do not meet
the Indonesian Law in form
the requirements and subject to the
of Ltd. (PT) or foreign private
conditions that such positions are
organization
open for foreigners. Foreigners can be
employed in Indonesia only for certain 8. Social institute and other institute
positions and period. for religious, education, or cultural
purpose
Employers of foreign workers in this
shall include: 9. Impresario service entity
1. Government body(s) The employers is able to hire foreign
workers only for a certain position
2. International body(s)
and a certain time.
3. Representatives of foreign country
Employers of Federal Civil Firm (Firma/
4. International organization Fa), the Limited/Federal Partnership
(CV), Associated Business (Usaha
5. Foreign Company Representative Bersama), Trading Company (Usaha
Office (KPPA), Foreign Company Dagang or UD) are prohibited from
Trade Representative Office (KP3A), employing foreign workers except as
Foreign Press Office provided in the Law.
INDONESIA INVESTMENT COORDINATING BOARD43
QUESTION 28
What about employing foreigner
as a member of board of director?
ANSWER :
According to Decree of the Minister 3. Human Resource Manager
of Manpower No. 228 Year 2019
concerning Certain Positions Open For 4. Personnel Development Supervisor
Expatriates: 5. Personnel Recruitment Supervisor
1. Certain positions open for 6. Personnel Placement Supervisor
Expatriates as listed in the Appendix,
which is an inseparable part of this 7. Employee Career Development
Ministerial Decree. This regulation Supervisor
lists more than 2,000 job titles
8. Personnel Declare Administrator
across 18 sectors that can now be
filled by expatriates. 9. Chief Executive Officer
2. The positions of Commissioners or 10.Personnel and Careers Specialist
Directors who are not managing
personnel are open for Expatriates. 11.Personnel Specialist
3. The Minister or an appointed 12.Career Advisor
official may give approval for the
13.Job Advisor
employment of Expatriates in the
event that the positions required by 14.Job Advisor and Counseling
the employers are not listed in the
Appendix as an inseparable part of 15.Employee Mediator
this Ministerial Decree.
16.Job Training Administrator
According to Decree of the Minister of
17.Job Interviewer
Manpower No. 40 Year 2012, foreigner
cannot hold a position as : 18.Job Analyst
1. Personnel Director 19.Occupational Safety Specialist
2. Industrial Relation Manager
INDONESIA INVESTMENT COORDINATING BOARD44
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
QUESTION 29
How much is the working permit
charge for foreigner?
ANSWER :
Companies employing foreigners are charged USD 100 per title per
person per month (Article 23 Decree of the Minister of Manpower
No. 10 Year 2018).
QUESTION 30
What are the procedures to recruit
foreign worker?
ANSWER :
First of all, employer (either DDI or D. Recommendation letter: RPTKA
FDI) should submit Foreign Workers
Utilization Plan (RPTKA) application There are 2 options for VITAS application
to the Ministry of Manpower of the :
Republic of Indonesia to get approval VITAS which is submitted by the
through link http://tka-online.kemnaker. employer/ guarantor :
go.id.
A. The employer submit Visa application
Once approved, Ministry of Manpower to Directorate General of Immigration.
of the Republic of Indonesia will issue
B. The employer has to pay for the telex
RPTKA Endorsement to the employer.
visa approval cost.
Employee will then be able to apply for
C. When the VITAS application is
Limited Stay Visa (Visa Tinggal Terbatas
approved, the employer will obtain
or VITAS). General requirement for
a copy of Visa Approval Letter
VITAS application as follows:
and another copy will be sent to
A. Application letter Indonesian Embassy/ Consulates.
B. Copy of bank statement D. The foreign worker has to come to
C. Original passport with minimum 18 the Indonesian Embassy/Consulates to
months validity for 1 year stay period submit the application with a copy of
or 30 months validity for 2 years the Visa Approval Letter and pay for
staying period visa fee.
INDONESIA INVESTMENT COORDINATING BOARD45
E. After obtaining a visa, the foreign foreign worker also has to pay for
worker will head to Indonesia, and the visa fee.
will be granted with an Entry stamp
E. After obtaining a visa, the foreign
upon arrival.
worker will head to Indonesia, and
F. Foreign worker should report to the be granted with an Entry stamp
local immigration office where he/ upon arrival.
she domicile in Indonesia to take
F. Foreign worker should report to the
biometric and interview and also pay
local immigration office where he/
the limited stay permit fee.
she domicile in Indonesia to take
G. VITAS issued. biometric and interview and also pay
the limited stay permit fee.
VITAS which is submitted by the
foreign worker : G. VITAS issued.
A. The foreign worker submits VITAS After entering Indonesia, foreign worker
application to Indonesian Embassy/ should report to the Immigration Office
Consulates. close to their area within 7 days of
arrival to get the Limited Stay Permit
B. The foreign worker will pay for the
Card (Kartu Izin Tinggal Terbatas or
telex visa approval cost.
KITAS). The following procedures also
C. The Indonesian Embassy/ Consulates applies to the temporary foreigner
will forward the application to workers and expertise, such as :
Directorate General of Immigration specialized technician for temporary
for approval. repair work, some experts for short-term
D. When the Visa application is job position and any affiliated foreigner
approved, The Indonesian Embassy/ for specific work function.
Consulates will issue the visa. The
INDONESIA INVESTMENT COORDINATING BOARD46
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
QUESTION 31
What are the procedures to apply for Foreign
Workers Utilization Plan (RPTKA)?
ANSWER :
Employers who will employ foreign with the qualifying position occupied by
worker shall have an RPTKA. RPTKA the foreign worker
is a basis to obtain Foreign Worker
9. Employer Taxpayer Identification
Employment Permit (IMTA). In order
Number (NPWP)
to receive RPTKA, the employer must
submit an online application to the 10. Copy of valid obligatory report of
Directorate General of Manpower employment in accordance to Law of
Placement Development and Job the Republic Indonesia No. 7 Year 1981
Opportunity Expansion through the
Director of Expatriate Worker Utilization 11. Recommended position that will be
Management by enclosing: occupied by the foreign worker from
technical ministries (if required)
1. Letter detailing the reason to hire
foreign nationals Based on Presidential Regulation No. 20
Year 2018 on Foreign Workers Utilization,
2. Completed RPTKA form companies employing foreign workers in
the following positions do not need to
3. License from authorized ministry
apply for the RPTKA:
4. Article of Association of legal entity
A. Shareholder as a member of the Board
that has been legalized by authorized
of Directors or a member of the Board
ministry
of Commissioners of the employer of
5. Organizational structure of the TKA;
employer company
B. Diplomatic and consular officers
6. Letter of the employer’s domicile from at representative offices of foreign
regional government countries; or
7. Letter of Appointment to Indonesian C. TKA on the type of work required by
manpower as assistant to the the government.
foreigner and a mentoring program
For emergency and urgent work, the
plan
Employers of TKA may employ TKA by
8. Letter of Statement of the capacity applying for RPTKA endorsement to the
to provide education and training for Minister or appointed official not later than
Indonesian manpower in accordance 2 (two) workdays after the TKA is working.
INDONESIA INVESTMENT COORDINATING BOARD47
QUESTION 32
Can foreign worker/ foreigner
hold multiple jobs in Indonesia?
ANSWER :
According to the Article 42 paragraph Additionally, the employer or sponsor
(4) and (5) of Law of the Republic is prohibited from hiring foreign
Indonesia No. 13 Year 2003 regarding worker who has already working in
on Employment, foreign worker can other company with exception if the
only be employed in Indonesia for a foreign worker is appointed as Director
certain position and department. or Commissioner in other company
as stated in its General Meeting of
As a follow up to the above regulation, Shareholders or certain sectors such
the Ministry of Manpower Regulation as vocational education and training,
No. 10 Year 2018 regarding Procedures digital economic and also oil and gas.
for Licensing Hiring Foreign Workers
stipulate. There are certain positions
which are prohibited for foreigners
QUESTION 33
What is the procedure to recruit a local worker?
ANSWER :
According to Article 35 of Act of the Republic Indonesia No. 13 Year 2003 about
Manpower, employer can recruit a local worker directly or through manpower
placement service providers. The manpower placement service provider shall
provide protection as from the recruitment to the manpower placement. The
employer in employing worker shall provide protection covering welfare, safety,
and physical and mental health of the worker.
INDONESIA INVESTMENT COORDINATING BOARD48
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
QUESTION 34
What is the status of working relations
between employer and employee?
ANSWER :
There are 2 kinds of working relations 2. Working relation for specified
between employer and employee : period. This working relation
shall be based on the period of
1. Working relation for unspecified time (maximum 3 years) and
period applied to permanent the completion of a certain job.
employee. The working agreement Working agreement for specified
for unspecified period can require period cannot require a probation
a probation period for 3 months period. It can be applied for a period
at the maximum and the wage of 2 years at the maximum and only
received by the employee shall not could be extended maximum once
below the minimum wages. for a year.
Note :
Please refer to Act of the Republic of Indonesia No.13 Year 2003
for further information.
QUESTION 35
Is outsourcing allowed?
Yes, it is. Outsourcing is defined as 1. If outsourcing is perceived as the
obtaining goods or services by contract recruitment of workers who directly
from an outside supplier. However, conducted by the employer with
majority of the outsource workers are the status of working relationships
employed under temporary contract. are specified for certain period and
unspecified period work agreement,
Related to this, there will be 2 thus this outsourcing definition is
definitions of outsourcing : associated with the Article 56-59,
INDONESIA INVESTMENT COORDINATING BOARD49
Law of the Republic of Indonesia A. Whole package service provider,
No.13 of 2003 and Decree of must meet the conditions, as
Minister of Manpower No.100/ follows :
MEN/VI/2004.
1. Conducted separately from
Specified period work agreement is for the main activity, not only
a particular job that will be completed management but also the
within a specified time, which included implementation of work
in a category, as follows: activities.
A. Job which could be done in one 2. Performed with a direct order
time or temporary or indirect order from the
employer.
B. Job which is estimated a
maximum of 3 years for its 3. Supporting activities that
completion support and facilitate the
main activity.
C. Job which is seasonal
4. Do not hinder production
D. Job which correlates with process directly.
new product, new activity or
additional product that are still in B. Worker service provider (worker
experiment or poll only), should be a supporting
service or not deal directly with
Meanwhile, uncertain time work the production process :
agreement is for the job that does
not meet the certain time work 1. Cleaning service
agreement’s categories.
2. Catering for workers
2. If outsourcing is understood as
obtaining goods or services by 3. Security
contract from outside parties,then 4. Supporting services in oil and
outsourcing in this definition must gas industry
be in accordance with Decree of
Minister of Manpower No.19 of 5. Transportation provider for
2012. Outsourcing is divided into 2 workers
types, which are:
INDONESIA INVESTMENT COORDINATING BOARD50
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
QUESTION 36
Is it allowed to establish a labor
union in Indonesia?
ANSWER :
Yes. According to the Article 102 and enhancing their skills and expertise and
103 of Act of the Republic Indonesia helping promote the business of the
No. 13 Year 2003 concerning enterprise for which they work and
Manpower, workers and their fight for the welfare of their members
organizations [unions] shall perform and families. Every worker has the right
the function of performing their jobs/ to form and become member of a
work as obliged, keeping things in trade/ labour union, and a trade/labour
order in order to ensure continued, union shall have the right to collect and
uninterrupted production, channeling manage fund and be accountable for
their aspirations democratically, the union’s finances.
QUESTION 37
How is the role of government in case
of dispute between the employer and
labor union?
ANSWER :
According to the Article 102 of Act should resolve it first through bipartite
of the Republic Indonesia No. 13 bargaining in deliberation to reach
Year 2003 concerning Manpower, consensus. In the event the bipartite
In conducting industrial relations, bargaining failed, then one or both
the government shall perform the of the parties can file their dispute
function of establishing policies, to the local authorized manpower
providing services, taking control and offices. Further information about
taking actions against any violations industrial relations dispute settlement
of statutory manpower rules and can be refered to Act of the
regulations. Republic Indonesia No. 2 Year 2004
concerning Industrial Relations
In the case of industrial relations Disputes Settlement.
dispute, employer and labor union
INDONESIA INVESTMENT COORDINATING BOARD51
QUESTION 38
Is there any law in Indonesia that
regulates labors strike?
ANSWER :
Yes, labors strike is regulated on the The strike shall be deemed illegal if it is
Decree of Minister of Manpower carried out:
No. 232 Year 2003. According to this
regulation, strike is an action that is a. Not as a result of failed
planned and performed together by negotiations; and/or
workers and/or by trade unions/labor b. Without any notification given
unions in order to stop or slower work. to the entrepreneur and the
Strike is a basic right of workers and/or government agency responsible for
trade unions/labor unions that is carried manpower affairs; and/or
out legally, orderly, and peacefully as a
consequence of failed negotiations. c. With a notification but the
notification is given less than 7
Failed negotiation shall refer to the (seven) days prior to the strike; and/
reaching of no agreement to settle or
industrial relations disputes because the
entrepreneur is unwilling to negotiate d. With a notification but the contents
even though the trade union/labor of the notification do not accord
union or the worker has submitted with points of Article 140 of Law
a written request for negotiation No. 13 Year 2003 concerning
twice within a period of 14 (fourteen) Manpower.
workdays or because the negotiations
lead to a deadlock and this is declared
by both sides in the negotiation
minutes.
INDONESIA INVESTMENT COORDINATING BOARD52
FAQ - FREQUENTLY ASKED QUESTIONS ON INVESTMENT
QUESTION 39
What is the regulation of
employment termination?
ANSWER :
Termination of employment is from the physician who treats
regulated in Chapter XII of Law of him or her provided that he or
the Republic Indonesia No. 13 Year she is not absent from work
2003 concerning Manpower. Based for a period of longer than 12
on this regulation, the entrepreneur, (twelve) months consecutively.
the worker and/or the trade/labour
2. The worker is absent from work
union, and the government must make
because he or she is fulfilling
all efforts to prevent termination of
his or her obligations to the
employment from taking place.
State in accordance with what is
If despite all efforts made termination prescribed in the valid statutory
of employment remains inevitable, legislation.
then, the intention to carry out the
3. The worker is absent from work
termination of employment must be
because he or she is practicing
negotiated between the entrepreneur
what is required by his or her
and the trade/labour union to which
religion.
the affected worker belongs as
member, or between the entrepreneur 4. The worker is absent from work
and the worker to be dismissed if because he or she is getting
the worker in question is not a union married.
member.
5. The worker is absent from
The entrepreneur may only terminate work because she is pregnant,
the employment of the worker after giving birth to a baby, having a
receiving a decision [a permission to do miscarriage, or breast-feeding
so] from the institute for the settlement her baby.
of industrial relation disputes.
6. The worker is related by blood
- Employer shall be prohibited from [birth] and or through marriage
discontinuing working relations with to another worker in the
the following reasons: enterprise unless so required in
the collective work agreement
1. The worker is absent from work
or the enterprise’s rules and
because he or she is taken ill as
regulations.
attested by a written statement
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