The energy and mineral resources sector, particularly operations conducted in remote and offshore areas, presents unique challenges that require flexible arrangements in working hours and rest periods. Recognizing these needs, the Minister of Manpower and Transmigration issued Decree No. KEP.234/MEN/2003 on Working Hours and Rest Periods in the Energy and Mineral Sector in Specific Regions. This regulation serves as a special framework, supplementing the general provisions of the Indonesian Manpower Law (Law No. 13 of 2003).

Flexible Working Hour Schemes

Unlike the standard working hours under Indonesian labor law (seven hours per day for six working days, or eight hours per day for five working days) the Ministerial Decree allows companies in the energy and mineral sector to adopt more flexible schedules.

Companies may choose among various schemes, ranging from 9 to 11 working hours per day with a maximum period of up to 14 consecutive working days. For instance, one of the permissible arrangements is 11 hours per day for 14 days, reaching a maximum of 154 working hours within that period. These extended working hours are designed to accommodate the operational demands of remote mining and offshore activities, where rotation systems are often applied.

Importantly, the regulation requires a 2:1 ratio between work and rest for longer periods. This means that after working continuously for 14 days, employees are entitled to at least five full days of rest with wages fully paid.

Overtime Pay and Rest Day Entitlements

The decree stipulates that any work performed beyond seven hours per day is considered overtime, even under these flexible schedules. Accordingly, companies must pay fixed overtime wages as part of the chosen scheme.

For standard schedules (five or six working days per week), overtime payment follows a progressive rate:

• 5 times the hourly wage for the first hour,
• 2 times for subsequent hours on regular days, and
• 2 to 4 times the hourly wage for work performed on rest days or public holidays.

For extended schedules (9–11 hours per day), companies must provide fixed overtime compensation ranging from 3.5 to 7.5 times the hourly wage per day, depending on the daily working hours.

Interestingly, the decree also provides that public holidays falling within extended work periods are treated as regular working days. This approach reflects the sector’s operational realities but also places emphasis on ensuring proper overtime compensation.

Reporting Obligations

To maintain oversight, companies adopting these flexible work arrangements must report their implementation every three months to the local manpower authority, with a copy submitted to the Ministry of Manpower. Reports should include the chosen work schedule, number of employees, details of overtime wages, and any changes in implementation.

Conclusion

Ministerial Decree No. KEP.234/MEN/2003 provides companies in Indonesia’s energy and mineral sector with the flexibility to tailor work schedules to operational needs in remote and offshore locations. At the same time, it emphasizes worker protection through clear rules on overtime pay, mandatory rest ratios, and reporting requirements.

For employers, compliance with this regulation is not merely about fulfilling legal obligations—it is also a key component of maintaining sustainable labor relations and operational efficiency in one of Indonesia’s most strategic sectors.

If you, a prospective client, require further legal advice or assistance in implementing labor regulations in the energy and mineral resources sector, Schinder Law Firm is one of the leading corporate law firms in Indonesia with extensive experience in labor and employment law. Please feel free to contact us at info@schinderlawfirm.com for tailored consultation.

Author:
Budhi Satya Makmur