Regarding employment in Indonesia, one of the many things not to be overlooked by companies is the mandatory manpower report. The mandatory manpower report has a great impact on a company. If an enterprise fails to comply with the requirements, they will be subject to penalties and sanctions.
What is Mandatory Manpower Report for Employment in Indonesia?
The Indonesian Ministry of Manpower issued a new regulation No. 18 of 2017 with effect from November 6, 2017. This regulation aims to simplify the registration process and to strengthen the legal protection for employees in Indonesia.
In other words, employers are required to comply with new reporting procedures, which include the mandatory manpower reports that have to be submitted online.
Mandatory Report Submission and Report Deadlines
Whether establishing, closing, dissolving, re-opening or transferring their business, every company in Indonesia is mandated to submit their mandatory manpower report online.
The manpower reports are categorised into three types, namely Event A Report, Event B Report, and Annual Report.
Companies must submit their report in the following deadlines per the type of report:
- Event A Report: 30 days after the company set up or re-opening of the company and its operation; 30 days after or before a change of the company address or ownership
- Event B Report: 30 days before the stopping, liquidation, or dissolution of a company
- Annual Report: every December
One important note is that all companies in Indonesia must submit their reports online. In 2018, organisations that had submitted their manpower report manually had to resubmit due to the change of regulation.
Why Is It Important to Prepare and Submit a Mandatory Manpower Report?
There are three reasons companies should prepare and submit their mandatory manpower reports from the get-go:
- The submission of mandatory manpower reports indicates that companies have implemented employee welfare programs to protect their employees appropriately.
- Failure to comply with the submission of mandatory manpower reports, companies shall face criminal sanctions. These sanctions include imprisonment for three months and a fine of IDR 1 million.
- A mandatory manpower report is also a compulsory requirement if a company wishes to hire foreign employees with a TKA permit. A company is not permitted to apply for a TKA permit if they do not submit a mandatory manpower report.
The Procedure of Submitting a Mandatory Manpower Report
The procedure of mandatory manpower report submission can be done through the official website of the Indonesian Ministry of Manpower:
1. Visit the website of the Indonesian Ministry of Manpower at www.wajiblapor.kemnaker.go.id.
2. Register an account with your company information on the website by clicking on ‘Company Registration’.
Fill out all required fields on the registration page.
3. Once your company is registered and you have an account, fill out all company information to submit your mandatory manpower report:
- User profile
- Company identity
- Company status
- Company legality
- Labour and foreign workers
- Job vacancies and employment opportunities
- Social security in regard to BPJS
- And others
Employment in Indonesia with Cekindo
Cekindo is an employment and recruitment agency driven by the purpose of helping businesses grow and prosper.
We also want to change people’s lives for the better. Here we build long-term and meaningful relationships with companies recruiting employees or qualified candidates. We also help organisations to handle the paperwork and required report submission to be fully in compliance with the local legislations.
Our trusted employment experts will help you deal with employment paperwork and secure the best candidates cost-effectively and easily in Indonesia.
Let Cekindo empower your company and help you create a fulfilling business. Fill in the form below now.