Insurance requirement for short-term foreign workers to be implemented

IMPACT – MEDIUM

The Indonesian government has announced that it will implement new health insurance requirements for employers hiring short-term foreign workers.

Key Points:

• Indonesian employers will soon have to provide insurance licensed by the Financial Services Authority to foreign nationals who are working for six months or less. The insurance packages include:
  • One month coverage for 762,000 IDR.
  • Three months coverage for 1,715,000 IDR.
  • Six months coverage for 2,477,000 IDR.
• Indonesian employers will be required to complete three additional steps through this website when hiring short-term foreign workers, including:
  • Registering their company on the Asuransi Tenaga Kerja Asing/Insurance for Foreign Worker (ASTAKA) website.
  • Purchasing an insurance premium for their short-term foreign workers.
  • Activating the purchased insurance after its issuance.
• Indonesian authorities have not set an official implementation date for the insurance requirement.

Additional Information: More information regarding the new insurance requirement for short-term foreign workers is available here.

BAL Analysis: Indonesian employers should note the additional steps they will need to complete when hiring short-term foreign workers and adjust their budgets as needed to account for the insurance premiums. BAL will provide more information regarding the insurance requirements once an implementation date is set.

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

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