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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