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.

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