Govt Tightens Foreign Worker Regulations in Indonesia

RRI.CO.ID, Jakarta - The Indonesian government will strengthen its supervision of foreign workers (TKA) in early 2026. The Ministry of Manpower has imposed sanctions on 12 companies in six provinces for violating labor regulations between January and February 2026.

Director General of Labor Supervision and Occupational Safety and Health (K3) Ismail Pakaya said the total fines reached IDR 4.482 billion (USD 266,302). “The amount of fines imposed on each company varies, depending on the number of foreign workers deemed to have been employed in violation of the regulations,” Ismail said in Jakarta on Monday, February 23, as quoted on the Ministry of Manpower's official website.

He explained that the sanctions aim to ensure labor norms are enforced and provide legal certainty for compliant workers and businesses. All fines will be deposited into the State Budget as Non-Tax Revenue (PNBP).

Ismail emphasized that compliance operations on foreign workers will continue throughout 2026. He said supervision must be carried out quickly, accurately, and measurably to be effective in the workplace.

The inspections refer to Government Regulation No. 34/2021 on the Employment of Foreign Workers and provisions in the Job Creation Law. Companies found to be non-compliant are required to make immediate adjustments. “If companies fail to make adjustments, they will be subject to measures under the law,” Ismail said.

Director of Labor Standards Inspection Rinaldi Umar said the violations were uncovered during inspections conducted by provincial labor inspectors together with a central team. “In addition to the companies that have been fined, there are still several companies in the process of payment and calculation of fines. State revenue from this sector may increase,” he said.

The 12 companies are located in West Kalimantan, Central Kalimantan, Riau Islands, North Sumatra, Jakarta, and Central Sulawesi. The largest number of companies is in Central Sulawesi. The biggest fine was imposed on PT BAP in West Kalimantan, amounting to IDR 2.172 billion, followed by PT BIS in North Sumatra with IDR 972 million. ***