Indonesia: Reinforcement of Ministry of Manpower Supervision

The Ministry of Manpower (“MoM”) has issued MoM Regulation No. 11 of 2026 on Procedures for Manpower Supervision (“MoM Reg. 11/2026”), which came into force on 3 July 2026. MoM Reg. 11/2026 repeals MoM Regulation No. 33 of 2016 and MoM Regulation No. 1 of 2020. MoM Reg. 11/2026 primarily concerns the supervision and enforcement of existing manpower requirements, rather than introducing a new set of substantive employment standards. The regulation is particularly relevant for employers as it formalizes the mechanisms through which manpower compliance may be examined and followed up by the authorities. The key provisions introduced under MoM Reg. 11/2026 include:

1. Supervisor Authority: Manpower supervisors are given express authority to enter companies, workplaces, or other locations where work is suspected to be carried out, obtain data and supporting evidence, and request information or statements from employers, workers, trade unions, K3 experts, and other relevant parties (Article 4 (a) and (b); and Article 5 (1) of MoM Reg. 11/2026). They may also take specific measures in response to violations, including sealing operational equipment, prohibiting or stopping work processes, stopping worker placement processes, and removing child workers or unauthorised foreign workers from the workplace (Article 4 (c); and Article 7 (1) and (2) of MoM Reg. 11/2026).

2. Supervision Procedures: Manpower supervision is organised into (i) preventive and educational measures, (ii) non-judicial measures, and (iii) judicial enforcement (Article 8 (1) of MoM Reg. 11/2026). The framework generally allows violations to be addressed through corrective measures before further enforcement is pursued. However, serious violations, including workplace accidents resulting in death, functional disability, partial anatomical disability, or permanent total disability, unlawful employment of children or employment of children in the worst forms of child labour, and violations containing criminal elements, may proceed directly to judicial enforcement in the form of the relevant criminal sanctions (Articles 9 (1) and (2) of MoM Reg. 11/2026)

3. Practical Implementation: MoM Reg. 11/2026 implements the supervision framework through five mechanisms: (i) guidance, (ii) examination, (iii) testing, (iv) investigation, and (v) development of the manpower supervision system, with further details as follows:

• Guidance: Guidance represents the preventive component of supervision and may be delivered through (i) technical advice, (ii) technical assistance, (iii) supervision, (iv) socialisation, or (v) discussion (Article 14 of MoM Reg. 11/2026). It may be directed at employers, workers, trade unions, employer organisations, and other relevant parties, including based on the results of manpower supervision (Article 15 of MoM Reg. 11/2026).
• Examination: Examination is used to establish compliance with manpower requirements and may be conducted as an (i) initial, (ii) periodic, (iii) special, or (iv) re-examination (Article 17 (1) of MoM Reg. 11/2026). It may involve workplace observation, requests for information and clarification, review of manpower documentation, and/or verification of a company’s self-assessment through MoM online system – SIAPkerja, with the examination process generally limited to 60 (sixty) working days (Article 19 of MoM Reg. 11/2026). An initial examination is conducted upon the establishment and operational commencement, resumption of activity, or relocation or transfer of ownership of a company (Article 20 of MoM Reg. 11/2026), while a periodic examination is carried out at intervals of at least 3 (three) years since the previous examination (Article 21 (1) of MoM Reg. 11/2026). A special examination may be triggered by complaints or reports, media coverage, or an order from the relevant supervisory authority (Article 22 (1) of MoM Reg. 11/2026).
• Testing: Testing applies where compliance requires calculation, analysis, measurement, or other forms of technical assessment. For employment standards, it may be used to determine certain outstanding employee entitlements, including overtime pay, minimum wages, and work accident or occupational disease benefits (Article 31 (2) of MoM Reg. 11/2026). For occupational health and safety (Keselamatan dan Kesehatan Kerja or “K3”) standards, testing may cover work equipment, materials, work methods, workers, and the work environment (Article 39 (3) of MoM Reg. 11/2026). K3 testing is conducted during the planning, installation, relocation, repair, and/or use of the relevant K3 object.
• Investigation: Investigation constitutes the criminal enforcement component of manpower supervision and is conducted by the Manpower Civil Servant Investigators (Penyidik Pegawai Negeri Sipil Ketenagakerjaan) in accordance with applicable laws and regulations. It applies where manpower violations contain criminal elements and therefore provides the formal route for matters requiring criminal investigation to proceed beyond the supervisory process (Article 47 of MoM Reg. 11/2026).
• Development of the Manpower Supervision System: The regulation also provides for the development of the supervision system through, among other measures, digitalization, cooperation, and innovation (Article 48 (1) of MoM Reg. 11/2026). Companies may conduct a self-assessment of manpower standards through an electronic checklist on SIAPkerja involving the employer or management and worker representatives (Article 49 (1) of MoM Reg. 11/2026). The results are verified by a Manpower Supervisor, while the self-assessment itself does not replace the Supervisor’s authority to conduct an examination. SIAPkerja therefore operates as an additional compliance monitoring mechanism rather than a substitute for formal supervision.

4. Transitional Provision: Existing examination notes (nota pemeriksaan), determinations, orders concerning employee rights, prohibition orders, and K3 certificates issued by the MoM before MoM Reg. 11/2026 came into force remain valid until their respective expiry dates. However, certain arrangements and processes concerning K3 Manpower Supervisors and K3 compliance certificates must be adjusted to comply with the requirements under MoM Reg. 11/2026 (Articles 52 and 54 of MoM Reg. 11/2026).

Concluding Remarks

The practical implication is that manpower compliance is expected to be capable of being demonstrated, verified, and documented through the relevant administrative and operational records. Companies operating in Indonesia should ensure that their employment and K3 documentation, internal compliance processes, and operational practices are sufficiently aligned and readily available for inspection. In particular, employers should be prepared to respond to requests for information, comply with examination notes within the prescribed periods, and make appropriate adjustments to their internal processes to accommodate the new supervision framework.