In response to the ever-increasing labor demands while simultaneously addressing unemployment issues, Joko Widodo, the Indonesian president, signed Presidential Regulation No. 57 of 2023 on Mandatory Reporting of Job Vacancies ("Regulation") into effect on Sept. 25. The Regulation repeals and supersedes the previous regulation on the same subject matter, namely Presidential Decree No. 4 of 1980 on Mandatory Reporting of Job Vacancies, which has become outdated in the evolving landscape of the Indonesian labor market.
By enacting the Regulation, the government hopes to enhance job search and placement through the creation of a centralized job vacancies information system. Both employers and job seekers can use this system. For employers, they can search for workers that match their workforce needs. Conversely, job seekers can find vacancies that are aligned with their skills, interests and abilities. Meanwhile, for the government, it can use the information on job vacancies for labor planning, labor placement, labor market information reporting and labor market analysis.
Types of Reporting
The Regulation categorizes job vacancies into two types: 1) domestic vacancies and 2) overseas vacancies.
The reporting obligation applies only to domestic vacancies. Here, employers must report available jobs. They must also file a report when the jobs get filled in.
On the other hand, reporting of overseas job vacancies remains governed by Government Regulation No. 59 of 2021 on Implementation of Protection for Indonesian Migrant Workers, which requires overseas job vacancies to be reported to the One-Stop Integrated Institution (Lembaga Terpadu Satu Atap) and verified by the labor attache and/or foreign service officer appointed at the destination country. After verification, the information on these overseas job vacancies will be published in the Labor Information System.
The reporting by employers, whether for domestic or overseas vacancies, into the system is free.
Centralized System
The reports will be facilitated through, and published in, the country’s online Labor Information System (Sistem Informasi Ketenagakerjaan), which is managed by the Ministry of Manpower.
When reporting job vacancies, an employer must provide the following information:
- Their identity.
- The job title and the number of workers required.
- The duration of the vacancy.
- Information about the job itself, including requirements on age, gender, education level, skills or competencies, work experience, salary or wage, and location.
When an employer files a report on job vacancies, such report will be verified by officials of the Ministry of Manpower, who will then publish such report on the system.
Duties of the Government
The Regulation also outlines the duties and responsibilities of the central government, provincial government, and district/city government in ensuring the effective implementation of the Regulation. These duties and responsibilities include developing policies and governance related to information on job vacancies, supervising and overseeing employers’ fulfillment of the reporting obligation, and imposing sanctions on employers that fail to fulfill their obligations.
The government is also authorized to award certificates or other forms of appreciation to employers that fulfill their reporting obligations.
Sanctions and Incentive
Under the Regulation, an employer that does not report job vacancies may be subject to administrative sanctions in the form of written warnings.
Key Takeaways
By enacting the Regulation, the government has laid the groundwork to overhaul the nation’s job vacancies reporting system. This move aims to streamline job matching for both employers and job seekers, ultimately addressing labor market challenges.
Ahmad Maulana is an attorney with Rajah & Tann Asia in Singapore. Muhamad Kamal Fikri is an attorney with Rajah & Tann Asia in Jakarta, Indonesia. © 2024 Rajah & Tann Asia. All rights reserved. Reposted with permission of Lexology.
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