Prohibition to Hire Expatriate as Commissioner on Local Company

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Group of office workers in a boardroom presentation

Group of office workers in a boardroom presentation

We understand that Commissioner Position is one of important position in the company, in which Commissioners have a responsibility to perform either general or specific monitoring in accordance with company association and to give advice to the Director.  In addition, many Indonesian Companies (in which the whole shares owned by Indonesian, hereinafter referred as “Local Company”) appointing an expatriate in their company as Commissioner to expand their business outside Indonesian market or “Go International”. Moreover, the expatriate appointed as Commissioner because they have international reputation, wide business connection and good knowledge on International market.

Unfortunately, since the Ministry of Manpower Transmigration of Indonesia issuance Regulation No.35 of 2015 on Procedure for Hiring an Expatriate Worker (“PERMENAKER  No.35/2015),

However, until now there is no official release from the Minister of Manpower regarding the article that prohibiting expatriate to become  Commissioner in a Local Company  both private and Go-public Company).

Realized that Commissioner position is important, the Local Company Owners convey their objection on this matter to Indonesian President, Mr. Joko Widodo at. CEO Forum Meeting, held in Jakarta on 26 November 2015. The Local Company owners feel this prohibition will obstruct their business expansion, especially for Local Company that already registered as Public Company. The President has answered to the mentioned issue and said that it was already coordinated by the Minister of Manpower and the mentioned article are supposed to be canceled if it will bring negative impact. The President also promised to recheck the mentioned regulation with the related Minister.

HOW CAN SMART LEGAL CONSULTING HELP YOU?

SMART Legal Consulting is an Indonesian Corporate Legal Services. We assist foreign individuals for working and/or doing business in Indonesia in obtaining legal documents required for their residency in Indonesia, such as Expatriate Work Permit, Business Visa and so on.

If you need immediate assistance, please contact the SMART Help Desk at:

E:  info@smartcolaw.com

H: +62821-1234-1235

 

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