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MINISTER OF MANPOWER AND TRANSMIGRATION

                          REPUBLIC OF INDONESIA

                                     DECREE

OF THE MINISTER OF MANPOWER AND TRANSMIGRATIONOF THE REPUBLIC
                         OF INDONESIA

                        NUMBER: KEP. 101/MEN/VI/2004

                              REGARDING
    THE PROCEDURES FOR ACQUIRING A PERMIT FOR A WORKER / LABOR
                        SUPPLIER COMPANY

THE MINISTER OF MANPOWER AND TRANSMIGRATIONOF THE REPUBLIC OF
                          INDONESIA



Considering:       a.   As the implementation of Article 66 paragraph (3) of Act Number
                        13 Year 2003 on Manpower, it is necessary to stipulate procedures
                        for acquiring a permit for a worker/labor supplier company;

                   b.   That for said purpose, it needs to be promulgated a Ministerial
                        Decree.

In view of:        1.   Act Number 3 Year 1951 regarding the Validation of the Labor
                        Supervision Act Number 23 Year 1948 of the Republic of
                        Indonesia throughout the whole territory of Indonesia (The
                        Republic of Indonesia State Gazette Year 1951 Number 4);

                   2.   Act Number 13 Year 2003 on Manpower (The Republic of
                        Indonesia State Gazette Year 2003 Number 39, the Republic of
                        Indonesia State Gazette Amendment Number 4279);

                   3.   Decree of the President of the Republic of Indonesia Number
                        228/M Year 2001 on the establishment of the Gotong Royong
                        Cabinet


Observing:         1.   Principal Thoughts of the National Tripartite Cooperation Body
                        dated April 20th 2004
2.    Agreement reached at the Plenary Meeting of the National
                              Tripartite Cooperation Body dated April 23rd 2004
                                       DECIDES :
    THE DECREE OF THE MINISTER OF MANPOWER AND TRANSMIGRATION
      REGARDING THE PROCEDURES FOR ACQUIRING A PERMIT FOR A
                  WORKER/LABOR SUPPLIER COMPANY

                                            Article 1

In this Ministerial Decree, the meaning of:
1 Worker is everyone who is working with receiving money or compensation in other forms.

2   Entrepreneur is:     a. individual person, a federation, or a corporate body, who operate a
                              company owned by themselves.
                         b. An individual person, a federation, or a corporate body, who
                              independently operate a company, which is not theirs.
                         c. An individual person, a federation, or a corporate body in Indonesia
                              who represent a company as meant in letters a and b located outside
                              the region of Indonesia
3   Company is:          a. All business types with corporate body or not, owned by an
                              individual person, a federation, or a corporate body, both owned by
                              private or owned by government which employ the worker/ laborer
                              with paying wages or compensation in other forms.
                         b. Social businesses and other businesses, which have executives and
                              employ other people with paying wages or compensation in other
                              forms.
4   Labor / worker supplier company is a cooperation body that in its business activity provides
    labor / worker to perform work for a work provider company
5   Minister is the Minister of Manpower and Transmigration.

                                            Article 2

1   To become a worker/labor supplier company, the company is under obligation to acquire an
    operational permit from the authorized manpower institution in district/ city relevant to the
    location of the worker/labor supplier company.
2   To acquire operational permit the worker/labor supplier company shall submit a proposal by
    attaching the following evidences:
    a. Copy of ratification of the company as a cooperation body in form of limited enterprise
         or cooperative
    b. Copy of article of association in which include business activity of labor/worker supplier
    c. Copy of business license (SIUP)
    d. Copy of valid compulsory report on manpower

3   The authorized manpower institution as meant in paragraph (1) shall have issued operational
    permit for the proposal that has fulfilled the requirements as meant in paragraph (2) within
30 (thirty) working days at the longest from the time the proposal is received.

                                            Article 3

The operational permit as meant in Article 2 is valid throughout Indonesia for 5 years period and
can be renewed for the same period of time.

Article 4



In the case the labor / worker supplier company accepts the work from a work provider company
both parties are under obligation to make a written agreement which at minimum consists of:

a. Type of work that will be executed by labor / worker of the labor / worker supplier company;
b. Statement that in executing the work as meant in letter a, the working relation made is
   between the labor / worker supplier company and labor / worker who is employed by the
   labor / worker supplier company, therefore the protection on wage and welfare, working
   conditions, and the dispute occurred become the responsibility of the labor / worker supplier
   company;
c. Statement that the labor / worker supplier company will accept labor / worker from the
   previous labor / worker supplier company for type of work that is continuously available in
   work provider company in the case of change of labor / worker supplier company

                                            Article 5

1   The agreement as meant in Article 4 shall be registered to the authorized manpower
    institution in the district / city where the labor / worker supplier company performs the work.
2   In the case labor / worker supplier company performs the work for a work provider company
    in more than one district / city within one province, therefore the registration is executed at
    provincial authorized manpower institution.
3   In the case labor / worker supplier company performs the work for a work provider company
    in more than one province, therefore the registration is executed at Directorate General of
    Industrial Relation Development.
4   The registration of agreement as meant in paragraph (1), paragraph (2) and paragraph (3)
    shall be enclosing draft of work agreement

                                            Article 6

1   In executing registration as meant in Article 4 the official of authorized manpower institution
    conducts evaluation on that agreement.
2   In the case the agreement as meant in paragraph (1) has fulfilled the requirements as meant
    in Article 4, therefore the official of authorized manpower institution issues registration
    evidence.
3   In the case there is condition which does not comply with the requirements in Article 4,
    therefore the official of authorized manpower institution write a note on registration
evidence stated that the particular agreement does not comply with the requirements in
    Article 4.

                                             Article 7

1   In the case the labor / worker supplier company does not register labor / worker supplier
    agreement, therefore the official of authorized manpower institution as meant in Article 2
    cancels the operational permit of the respective labor / worker supplier company after
    receiving recommendation from the authorized manpower institution as meant in Article 5.
2   In the case the operational permit is canceled, the rights of labor / worker remain the
    responsibility of the respective labor / worker supplier company.

                                            Article 8
This Decree of the Minister shall come into force on the day of its stipulation.




                                       Stipulated in Jakarta
                                        On 21 June 2004

          Minister of Manpower and Transmigration of the Republic of Indonesia



                                        Jacob Nuwa Wea

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Kepmen 101 2004 outsourcing company (english)

  • 1. MINISTER OF MANPOWER AND TRANSMIGRATION REPUBLIC OF INDONESIA DECREE OF THE MINISTER OF MANPOWER AND TRANSMIGRATIONOF THE REPUBLIC OF INDONESIA NUMBER: KEP. 101/MEN/VI/2004 REGARDING THE PROCEDURES FOR ACQUIRING A PERMIT FOR A WORKER / LABOR SUPPLIER COMPANY THE MINISTER OF MANPOWER AND TRANSMIGRATIONOF THE REPUBLIC OF INDONESIA Considering: a. As the implementation of Article 66 paragraph (3) of Act Number 13 Year 2003 on Manpower, it is necessary to stipulate procedures for acquiring a permit for a worker/labor supplier company; b. That for said purpose, it needs to be promulgated a Ministerial Decree. In view of: 1. Act Number 3 Year 1951 regarding the Validation of the Labor Supervision Act Number 23 Year 1948 of the Republic of Indonesia throughout the whole territory of Indonesia (The Republic of Indonesia State Gazette Year 1951 Number 4); 2. Act Number 13 Year 2003 on Manpower (The Republic of Indonesia State Gazette Year 2003 Number 39, the Republic of Indonesia State Gazette Amendment Number 4279); 3. Decree of the President of the Republic of Indonesia Number 228/M Year 2001 on the establishment of the Gotong Royong Cabinet Observing: 1. Principal Thoughts of the National Tripartite Cooperation Body dated April 20th 2004
  • 2. 2. Agreement reached at the Plenary Meeting of the National Tripartite Cooperation Body dated April 23rd 2004 DECIDES : THE DECREE OF THE MINISTER OF MANPOWER AND TRANSMIGRATION REGARDING THE PROCEDURES FOR ACQUIRING A PERMIT FOR A WORKER/LABOR SUPPLIER COMPANY Article 1 In this Ministerial Decree, the meaning of: 1 Worker is everyone who is working with receiving money or compensation in other forms. 2 Entrepreneur is: a. individual person, a federation, or a corporate body, who operate a company owned by themselves. b. An individual person, a federation, or a corporate body, who independently operate a company, which is not theirs. c. An individual person, a federation, or a corporate body in Indonesia who represent a company as meant in letters a and b located outside the region of Indonesia 3 Company is: a. All business types with corporate body or not, owned by an individual person, a federation, or a corporate body, both owned by private or owned by government which employ the worker/ laborer with paying wages or compensation in other forms. b. Social businesses and other businesses, which have executives and employ other people with paying wages or compensation in other forms. 4 Labor / worker supplier company is a cooperation body that in its business activity provides labor / worker to perform work for a work provider company 5 Minister is the Minister of Manpower and Transmigration. Article 2 1 To become a worker/labor supplier company, the company is under obligation to acquire an operational permit from the authorized manpower institution in district/ city relevant to the location of the worker/labor supplier company. 2 To acquire operational permit the worker/labor supplier company shall submit a proposal by attaching the following evidences: a. Copy of ratification of the company as a cooperation body in form of limited enterprise or cooperative b. Copy of article of association in which include business activity of labor/worker supplier c. Copy of business license (SIUP) d. Copy of valid compulsory report on manpower 3 The authorized manpower institution as meant in paragraph (1) shall have issued operational permit for the proposal that has fulfilled the requirements as meant in paragraph (2) within
  • 3. 30 (thirty) working days at the longest from the time the proposal is received. Article 3 The operational permit as meant in Article 2 is valid throughout Indonesia for 5 years period and can be renewed for the same period of time. Article 4 In the case the labor / worker supplier company accepts the work from a work provider company both parties are under obligation to make a written agreement which at minimum consists of: a. Type of work that will be executed by labor / worker of the labor / worker supplier company; b. Statement that in executing the work as meant in letter a, the working relation made is between the labor / worker supplier company and labor / worker who is employed by the labor / worker supplier company, therefore the protection on wage and welfare, working conditions, and the dispute occurred become the responsibility of the labor / worker supplier company; c. Statement that the labor / worker supplier company will accept labor / worker from the previous labor / worker supplier company for type of work that is continuously available in work provider company in the case of change of labor / worker supplier company Article 5 1 The agreement as meant in Article 4 shall be registered to the authorized manpower institution in the district / city where the labor / worker supplier company performs the work. 2 In the case labor / worker supplier company performs the work for a work provider company in more than one district / city within one province, therefore the registration is executed at provincial authorized manpower institution. 3 In the case labor / worker supplier company performs the work for a work provider company in more than one province, therefore the registration is executed at Directorate General of Industrial Relation Development. 4 The registration of agreement as meant in paragraph (1), paragraph (2) and paragraph (3) shall be enclosing draft of work agreement Article 6 1 In executing registration as meant in Article 4 the official of authorized manpower institution conducts evaluation on that agreement. 2 In the case the agreement as meant in paragraph (1) has fulfilled the requirements as meant in Article 4, therefore the official of authorized manpower institution issues registration evidence. 3 In the case there is condition which does not comply with the requirements in Article 4, therefore the official of authorized manpower institution write a note on registration
  • 4. evidence stated that the particular agreement does not comply with the requirements in Article 4. Article 7 1 In the case the labor / worker supplier company does not register labor / worker supplier agreement, therefore the official of authorized manpower institution as meant in Article 2 cancels the operational permit of the respective labor / worker supplier company after receiving recommendation from the authorized manpower institution as meant in Article 5. 2 In the case the operational permit is canceled, the rights of labor / worker remain the responsibility of the respective labor / worker supplier company. Article 8 This Decree of the Minister shall come into force on the day of its stipulation. Stipulated in Jakarta On 21 June 2004 Minister of Manpower and Transmigration of the Republic of Indonesia Jacob Nuwa Wea