MANDATORY REPORT OF JOB VACANCIES IN INDONESIA

 I.    Background

1.        On 25 September 2023, Presidential Regulation Number 57 of 2023 on the Mandatory Report of Job Vacancies (“PR 57/2023”) was issued. This regulatory milestone marks a substantial change, as it revokes and supersedes the long-standing Presidential Decree Number 4 of 1980 on Mandatory Report of Job Vacancies (“PD 4/1980”), which had been in force since 12 January 1980.

2.        As set out in the considerations of PR 57/2023, it is imperative to have job vacancy information provided by employers to enhance labor placement services within a unified labor market. Furthermore, the regulations on mandatory report of job vacancies under PD 4/1980 require updating to align with the developments in the labor sector. This is essential to ensure that the regulations concerning the obligation to report job vacancies remain pertinent and effective in addressing the challenges and changes occurring in the labor market.

3.        Given that PR 57/2023 only provides a general explanation, with detailed provisions to be further regulated by Ministerial Regulations or Regional Head Regulations in accordance with their respective authorities, this legal update will mainly focus on the general understanding of mandatory report of job vacancies, job vacancy information, the roles and responsibilities of the government, incentives for employers who report job vacancies, and sanctions for employers who do not report job vacancies.

II.    Key Provisions

Mandatory Report of Job Vacancies

4.        In essence, this regulation ensures that information about job vacancies is more transparent and easily accessible to the public, including job seekers. On the other side, with the implementation of structured reporting system, employers and the government can more efficiently facilitate the recruitment process. This, in turn, can help reduce the time required to fill job positions, thereby supporting faster economic growth.

5.        In Article 1 paragraph (2) of PR 57/2023, employers are defined as individuals, entrepreneurs, legal entities, or other bodies that employ workers by paying wages or other forms of compensation (“Employer”). Moreover, in contrast to PD 4/1980, which lacked a definition for job seekers, PR 57/2023 introduces a precise definition of job seekers in Article 10, which consist of:

a.     Labor force who has never worked and who is trying to secure a job;

b.     Labor force who has previously worked but for some reason has stopped working or has been terminated and who is trying to secure a job; or

c.      Labor force who is working or who already has a job but for some reason is still trying to find another job.

6.        It’s important to emphasize that, as specified in Article 3 of PR 57/2023, job openings covered by this regulation encompass both domestic and foreign job vacancies. As per Article 4 paragraph (2) of PR 57/2023, it is mandatory for the Employer to report domestic job vacancies via the Manpower Information System administered by the Ministry of Manpower (“MoM”). In contrast, pursuant to Article 8 of PR 57/2023, this regulation allows for the reporting of international job vacancy through the Manpower Information System, making it optional rather than obligatory.

7.        Currently, the procedure for reporting job vacancies has undergone significant changes compared to the previous regulation, PD 4/1980. Under PD 4/1980, all job vacancy reports had to be submitted in writing. However, pursuant to Article 4 and Article 8 paragraph (1) of PR 57/2023, all job vacancy reports, both domestic and international, can only be submitted to the MoM through the relevant labor-related service platform (Manpower Information System). It is important to note that reporting of job vacancies is free of charge.

8.        Pursuant to Article 5 of PR 57/2023, the reporting of job vacancies must at least include the following information:

a.     Employer’s details;

b.     Job title and the amount of required workers;

c.      Duration of the job vacancy; and

d.     Job information, including;

• • • Age;
    • Gender;
    • Education;
    • Skills or competencies;
    • Work experience;
    • Salary or wages;
    • Work area location; and
    • Other information related to the required position.

Authorized government officials will verify the above-mentioned reporting. However, the verification system and the procedures are not regulated in this PR 57/2023 and will further be regulated in further implementing regulations.

9.        Ultimately, pursuant to Article 6 of PR 57/2023, if a job vacancy has been filled or occupied by job seekers, the Employer is obliged to report it to MoM through the Manpower Information System. Thus, the reporting that has been done can be used to manage labor data and create alignment between the available workforce and the job requirements in the labor market.  Note that PR 57/2023 does not specify an exact reporting deadline, hence, it may be regulated later on under the ministry regulation level.

Job Vacancy Information

10.    In this context, as stipulated in Article 9 of PR 57/2023, information regarding job vacancies is considered openly accessible information. Hence, such job vacancy information can be utilized by various parties, including job seekers, Employers, the Central Government, and Regional Governments, for the following purposes:

a.  Securing a job that is in accordance with talent, interest, and capability;

b.  Acquiring  worker that suits the needs;

c.  Worker planning;

d.  Worker placement;

e.  Reporting of information on the job market;

f.  Analysis of the job market;

g.  Analysis of the position;

h.  Analysis of the needs for training; and/or

i.  Implementation of the unemployment insurance program.

Roles and Responsibilities of the Government

11.    In the pursuit of achieving a high level of legal compliance and welfare, the Government plays a central role in various tasks and functions. Therefore, it is crucial for Employers and job seekers to have a comprehensive understanding of the duties and responsibilities falling under the Government’s domain in this context.

12.    Fundamentally, PR 57/2023 delineates the roles and responsibilities of the Central, Regional, and District/City Governments. The following are the general tasks and responsibilities of the Government as outlined in Articles 13 to Article 15 of PR 57/2023:

a.     Formulate policy and governance of job vacancy information;

b.     Establish, maintain, and develop the Manpower Information System;

c.      Guide and supervise Employers to fulfill the mandatory reporting of job vacancies through the Manpower Information System;

d.     Verify job vacancies;

e.     Disseminate job vacancies through the Manpower Information System;

f.       Utilize information on job vacancies for worker planning, worker placement, reporting of job-market information, job-market analysis, and position analysis within a provincial area;

g.     Monitor and evaluate Employers in relation to the mandatory reporting of job vacancies; and

h.     Impose sanctions on Employers that fail to fulfill the mandatory reporting of job vacancies.

Incentives or Award for Employers who Report Job Vacancies

13.    To acknowledge the Employer’s contribution in supporting the implementation of this regulation, Article 16 of PR 57/2023 expressly stipulates that Employers who report job vacancies may receive recognition in the form of charter or other awards granted by the Minister, Governor, or Regent/Mayor as determined by their authority. Procedures and details on this matter will be more regulated in the ministerial regulation.

Sanctions for Employers who do not Report Job Vacancies

14.    In contrast to PD 4/1980, which prescribes criminal consequences like imprisonment for a maximum of three months or a fine of up to IDR100,000 (one hundred thousand Rupiah) for Employers who do not report job vacancies or neglect to report when the positions have been filled, PR 57/2023, as detailed in Article 17, enforces administrative penalties in the form of written warnings for the Employers who do not fulfil their obligation to report job openings or occupied positions to the MoM.

Specifics procedures for implementing these administrative sanctions will be further regulated in the forthcoming implementation regulation.

For further information, please contact us at:

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Disclaimer:
This article is intended for general information only. It is not intended to be, nor should it be construed as, legal advice applicable to your particular situation. You should seek the advice of legal counsel of your choice before acting upon any of the information in this article.