Insurance requirement implemented for short-term foreign workers

IMPACT — MEDIUM

The Indonesian government recently implemented an insurance requirement for employers hiring short-term foreign workers.

Key Points:

• As of Nov. 8, employers must purchase ASTAKA insurance before hiring foreign workers for less than six months.
• To fulfill the insurance requirement, employers must take the following steps through this website:
  • Register their company through the ASTAKA website.
  • Purchase insurance for each foreign worker to be hired.
  • Activate the insurance after it is issued.
• ASTAKA insurance cannot be substituted with foreign workers’ personal health insurance issued in their home country.
• Companies can choose ASTAKA insurance for one, three or six months at 762,000 IDR (about US$49), 1,715,000 IDR or 2,477,000 IDR, respectively.

BAL Analysis: Indonesian authorities introduced the new ASTAKA insurance requirement to better protect short-term foreign workers’ rights while they live and work in Indonesia.

This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.

Copyright © 2022 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.