Oct

04

Outsourcing Business Licensing

Outsourcing Business Licensing

Companies providing outsourcing services (the “Outsourcing Company”) shall comply with the provisions of the Ministry of Manpower Regulation No. 11 of 2019 on Requirements of Partial Work Division to Other Company (the “Regulation”), the newest regulation on outsourcing arrangements. The Regulation requires that the following are produced or amended:

The Outsourcing Agreement (the “Agreement”) needs to clearly state the following additional clauses:

1. Description of the type(s) of works to be performed by the workers/employees of the Outsourcing Company;

2. Outsourcing Company’s statement of willingness to accept the workers/employees’ continuous nature of work;

3. Work relationship between Outsourcing Company and workers/employees must be clearly stated, either under Indefinite Time Working Agreement or Definite Time Working Agreement (PKWTT or PKWT);

4. Obligation to fulfill workers/employees’ rights in accordance to laws and regulations.

The Labor Provider License (Izin Usaha Penyediaan Jasa Pekerja Buruh) must be obtained by the Outsourcing Company:

In order to provide labor services, Outsourcing Company shall obtain Labor Provider License (Izin Usaha Penyediaan Jasa Pekerja Buruh). The license can be obtained by submitting application to Online Single Submission (the “OSS”) with the following requirements:

1. A legal entity and established in accordance to Indonesian laws with labor service provider as its business activity;

2. Having obtained Main Business Number or Nomor Induk Berusaha (NIB).

The Agreement must be registered with the local Manpower Institution (Dinas Tenaga Kerja) by the Outsourcing Company. Failure to do so may result in a written warning followed by suspension of business.

One of Schinder Law Firm’s key practices helps with employment and industrial relations matters. Our senior advisor, Dr. Bambang Supriyanto, is an expert on the subject, and was actively involved in the establishment of various Indonesian Industrial Relations Courts. In addition to Dr. Bambang’s presence, we have a team of lawyers with extensive experience advising and representing clients in various employment matters and disputes.

Please contact us if you have further questions on employing expatriates or any other employment matters administratively or dispute settlement.

About the author:

 

GEOFFREY AURYN JAURISSAGeoffrey Auryn Jaurissa
Geoffrey Auryn Jaurissa is a junior associate at Schinder Law Firm. He assists both Indonesian and foreign clients in a variety of corporate works, with primary focus on foreign direct investment. A keen sportsman, Geoffrey likes to spend his spare time practicing Wushu.

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Dear valued Visitor,

Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
  • Training on the PDP Law tailored to clients’ businesses

We look forward to many more opportunities in the year ahead with your continued support and trust. For consultation, please send us a WhatsApp or Email.

Warmest regards,
Naz Schinder
Managing Partner

Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.