Considering:

1. that the progress achieved through development in the field of economy and other fields has increased the business activities and continued to extent the fields and opportunities of employment;
2. that the available employment opportunities be as much as possible taken by Indonesia workers, it is deemed necessary to establish again a Presidential Decree to regulate the engagement of Foreign Expatriate Workers;

In view of:

1. Article 4, sub-article (1) and Article 27, sub-article (2) of the 1945 Constitution;
2. Law no.3 of 1958 regarding the Placement of Foreign Workers (State Bulletin no.8 of 1958);
3. Law no.1 of 1967 regarding Foreign Capital Investment (State Bulletin no.1 of 1967, State Bulletin Supplement no. 2818) as amended by Law no.11 of 1970 (State Bulletin no. 47, State Bulletin no.2943);
4. Law no.6 of 1968 regarding Domestic Capital Investment (State Bulletin no.33 of 1968, State Bulletin no.2853) as amended by Law no.12 of 1970 (State Bulletin no.47 of 1970, State Bulletin no.2944);
5. Law no.14 of 1969 regarding the Main Provisions on Manpower (State Bulletin no.55 of 1969, State Bulletin no. 2912);
6. Law no.1992 regarding Immigration (State Bulletin no.33 of 1992, State Bulletin no.3474);
7. Government Regulation no.2o of 1994 regarding Share ownership in Companies Established Within The Frame of Foreign Capital Investment (State Bulletin no.28 of 1994, State Bulletin no.3552);
8. Government Regulation no.32 of 1994 regarding Visa, Entrance Permit and Immigration Permits (State Bulletin no.55 of 1994, State Bulletin no.3563);

Has Decided:

To establish:

The Presidential Decree Regarding the Engagement of Expatriate Foreign Workers.

Article 1

In this Presidential Decree:

1. 'Foreign Expatriate Worker, hence abbreviated to Forex Worker,' refers to a Foreign Citizen in possession of either a Short Stay Visa, Short Stay Permit or Permanent Stay Permit with the purpose to work within the territory of the Republic of Indonesia.
2. 'A User of Forex Workers' refers to an individual person's business or business venture or legal entity, established based on Indonesian law and domiciled in Indonesia, which carries out operations to produce goods and/or services with the purpose of making or not making profit and is in possession of a Forex Worker employment permit.
3. 'Indonesian workers' refers to workers with Indonesian citizenship.

Article 2

1. Any User of Forex Workers is obliged to give priority to Indonesian workers to fill vacancies in any field and of any type of jobs.
2. If the job vacancies in any field and of any type can not as yet be entirely or can only be partly filled by Indonesian workers, the user of Forex Workers may engage Forex Workers for a specified period of time.

Article 3

1. The position of Member of the Board of Directors and Commissioner in capital investment companies set up with capital, that is fully or partly owned by Foreign Citizens and/or foreign legal entities, or in capital investment companies set up with the entire capital owned by Indonesian Citizens, and/or Indonesian legal entities, are open for Forex Workers.
2. The position of Commissioner referred to in sub-article (1) does not apply for capital investment companies set up with their entire capital owned by Indonesian Citizens.
3. The owners of capital in capital investment companies set up
4. With the entire capital owned by Foreign Citizens and/or foreign legal entities, may themselves appoint Forex Workers as Members of the Board of Directors and Commissioners of their companies.
5. The owners of capital investment companies set up as joint ventures between foreign capital and capital owned by Indonesian Citizens and/or Indonesian legal entities, or of capital investment companies set up with the entire capital owned by Indonesian citizens and/or Indonesian legal entities, appoint the Members of the Board of Directors and Commissioners on mutual agreement of the parties concerned.

Article 4

1. The position of Member of the Board of Directors of a company set up not within the scope of the Law on Capital investment is open for FEW.
2. The position of Commissioner of a company as referred to in sub-article (1) is only open for an Indonesian worker.

Article 5

The position of Director responsible for Personnel Affairs of the companies referred to in Article 3 and Article 4, must be filled by an Indonesian worker.

Article 6

1. Jobs in fields or of types below the position of the Members of the Board of Directors, which are closed or open for Forex Worker for a specified period of time, will be determined by the Minister of Manpower with due consideration of the opinion of the functional Minister concerned.
2. The list of jobs referred to in sub-article (1) is reviewed at the latest every three (3) years.

Article 7

1. Users of Forex Workers are obliged to have a Forex Worker Engagement Plan, which include Members of the Board of Directors and Commissioners, which is approved by the Minister of Manpower or a designated Official.
2. The Forex Worker Engagement Permit is issued by the Minister of Manpower or a designated Official.
3. The Forex Workers referred to in Article 2 sub-article (2) and Members of the Board of Directors/Commissioners referred to in Article 3 and Article 4 are obliged to have a Forex Engagement Permit from the Minister of Manpower or a designated Official.
4. The procedure to obtain legalization of a Forex Worker Engagement Plan, Forex Worker Engagement Permit and Work Permit as referred to in sub-article (1), sub-article (2) and subarticle (3) is further arranged by the Minister of Manpower with due consideration of the opinion of the functional Minister concerned.

Article 8

1. Any user of Forex Workers is obliged to implement the programme of replacement of Forex Workers by Indonesian workers.
2. Within the scope of implementing the programme referred to in sub-article (1), users of Forex Workers are obliged:

1. to appoint an Indonesian worker as a Substitute Worker for the type of job held by a Forex Worker;
2. to conduct education and training for engaged Indonesian workers, either by themselves of by using third party services.

3. The Substitute Worker referred to in sub-article (2) sub a should be clearly mentioned in the Forex Worker Engagement Plan referred to in Article 7 sub article (1) and in the company's structure of jobs.
4. The costs for conducting education and training as referred to in sub-article (2), sub b, is borne by the user of Forex Workers and is not rechargeable to the Indonesian Workers.

Article 9

Users of Forex Workers are obliged to report the implementation of the programme referred to in Article 8 sub-article (2) to the Minister of Manpower.

Article 10

1. Users of Forex Workers are subject to a levy for any Forex Worker engaged by them.
2. The levy referred to in sub-article (1) is used to support the Training of Indonesian Workers established by the Minister of Manpower.
3. The amount of the levy is determined by the Minister of Manpower with due consideration of the Minister of Finance's opinion.

Article 11

Being subject to the levy referred to in Article 10, a User of Forex Workers is no longer subject to other levies on engaging Forex Workers.

Article 12

1. Users of Forex Workers, who don't adhere to the provisions of this Presidential Decree and its rules for administration, are penalized by the withdrawal of the Legalization Decree on the Forex Worker Engagement Plan and/or the Forex Worker Engagement Permit.
2. A Forex Worker who does not abide by the provisions of this Presidential Decree is penalized by the withdrawal of his/her Forex Worker Work Permit.

Article 13

The additional provisions required for the implementation of this Presidential Decree, are arranged by the Minister of Manpower with due consideration of the opinion of the functional Minister concerned.

Article 14

1. With this Presidential Decree becoming effective, Presidential Decree no.23 of 1974 regarding the Restriction of Engagement of Foreign Expatriate Workers is declared to be no longer valid.
2. All rules of administration of Presidential Decree no.23 of 1974 remain operative as far as not in contravention with and or not yet reviewed based on this Presidential Decree.

Article 15

This Presidential Decree becomes effective on the date of its establishment.

Established in Jakarta

on 9 November 1995

President of the Republic of Indonesia

(signed)

S O E H A R T O