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Yesi Samosir

Yesi Samosir is an Associate in Baker McKenzie, Jakarta office.

In February 2022, the Minister of Employment issued Regulation No. 2 of 2022 on the Procedure and Conditions for the Payment of Old Age Security Benefits. This regulation raised a number of questions, particularly from employees and unions, as it only allows employees who voluntarily resign to receive their Old Age Security (Jaminan Hari Tua or “JHT”) benefits payout when they reach the age of 56, regardless of their age when they resign. In response to these objections, the Minister revisited the February regulation. On 26 April 2022, in the week before the Idul Fitri holidays, the Minister issued Regulation No. 4 of 2022 on the Procedure and Conditions for the Payment of Old Age Security Benefits (“Regulation 4”), replacing Minister of Employment Regulation No. 2 of 2022.

Over the past few weeks, the Indonesian Government has been reducing the level of Enforcement of Public Activity Restrictions in various regions within Indonesia. In light of this, and to further support Indonesia’s economic recovery, the Minister of Law and Human Rights issued Regulation No. 34 of 2021 on Granting of Immigration Visas and Stay Permits during COVID-19 Spread Handling and National Economic Recovery on 15 September 2021.

On 2 February, the Indonesian government enacted a number of implementing regulations of Law No. 11 of 2020 on Job Creation (“Omnibus Law”), though many were only made available to the public on 21 February.

One of the enacted implementing regulations is Government Regulation No. 35 of 2021 on Definite Period Employment Agreements, Outsourcing, Working and Resting Hours and Termination of Employment (“Regulation 35”).

The Indonesian House of Representatives (DPR) has approved job creation law (RUU Cipta Kerja) – commonly known as the “Omnibus Law”. The Omnibus Law amends a number of existing laws, including Law No. 13 of 2003 on Labor (“Labor Law”) and Law No. 40 of 2004 on National Social Security System (“Social Security Law”). This alert will focus on Chapter IV of the Omnibus Law, which covers employment matters.