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To address increasing levels of unemployment and improve access to information for job seekers, since 25 September 2023 all employers in Indonesia have been required to report to the Ministry of Manpower (MOM) both when a job vacancy arises and when the vacancy has been filled. The reporting is done online via the Manpower Information System.
The mandatory reporting of job vacancies was introduced through Presidential Regulation No. 57 of 2023 on the same topic (the new Regulation) on 25 September 2023. However, this reporting obligation is not entirely new, since Presidential Decree No. 4 of 1980 on the same topic (the old Decree) imposed a similar reporting requirement (though paper-based at that time, and more limited in scope), which is now revoked by the new Regulation.
The old Decree, which was never widely enforced, had required employers and officers (pengusaha) to immediately report any job vacancies to the MOM in writing.
Under the new Regulation, this reporting should now be done online through the Manpower Information System (known as the Siap Kerja platform, and found here: https://karirhub.kemnaker.go.id/) managed by the central government. The Manpower Information System is a central platform for all labour-related public services.
The information reported through the Manpower Information System is accessible to job seekers, employers, central government and local government (ie provincial and city/regency level governments). The information reported may also be used for other purposes, such as for research and training.
Reporting mechanism for domestic job vacancies
Employers are required to report and provide the following information through the Manpower Information System:
- identity of the employer;
- the vacant position and the number of employees required;
- period of validity of the job vacancy;
- vacancy requirements (eg age, gender, education, skills and competencies, work experience, salary, and work location).
Once a vacancy is filled, the employer must report this to the MOM using the Manpower Information System.
Further details on the reporting requirements will be set out in a forthcoming ministerial regulation.
Carrot and stick
The old Decree had imposed a criminal sanction of imprisonment for up to three months and a fine of up to Rp.100,000 (approximately US$6) for failure to comply.
Interestingly, the new Regulation seeks to encourage compliance by both rewarding employers that comply and punishing those that fail to comply. The new Regulation empowers the MOM or the local government to award a certificate or other forms of reward for compliance, and to impose administrative sanctions through written warnings to employers that fail to comply.
Further details on these rewards and sanctions will be set out in a forthcoming ministerial regulation. At the time of writing, no ministerial regulation or Jakarta-wide provincial regulation has yet been passed.
Reporting mechanism for overseas job vacancies
Unlike the old Decree, which was only concerned with domestic job vacancies, the new Regulation covers vacancies for both domestic and overseas placements.
Overseas job vacancies are to be reported in an "integrated" way through the Manpower Information System. However, the new Regulation does not explain the types of information that must be reported, or impose any sanctions for failure to report overseas job vacancies.
While the obligation to report vacancies has already come into effect, more detailed guidance is needed, including the timeframe in which to file a report. Employers should continue to watch this space for more updates.
The effectiveness of the reporting obligation in promoting transparency for job seekers hinges on employers being committed to fulfilling their responsibilities, rather than treating this as a bureaucratic requirement, where they may appoint a candidate before even officially reporting the vacancy.
Herbert Smith Freehills and Hiswara Bunjamin & Tandjung have extensive experience in advising clients in Indonesia and regionally on key strategies to access and retain top talents whilst ensuring local law compliance. To find out more, contact firstname.lastname@example.org in Singapore or Prawidha Murti (Wida) in Jakarta.