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IMPACT – MEDIUM
What is the change? The government has released details of the new work permit regulations, including a mandatory language requirement.
What does the change mean? The regulations, released in April, contain several important processing changes to work permits as detailed below. The language provision says that employers must provide Indonesian language training to foreign employees on long-term work permits in non-director positions, and authorities will be making site visits to verify the language ability of these foreign workers.
Key changes:
BAL Analysis: The regulations contain significant changes intended to speed up government processing and simplify procedures, but the impact will be clearer once implemented. Authorities attempted to impose mandatory language requirement on foreign workers in 2015, but withdrew them in response to opposition from business groups. BAL will continue to report on the regulations as they are implemented.
This alert has been provided by the BAL Global Practice group and our network provider located in Indonesia. For additional information, please contact your BAL attorney.
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