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February 6, 2023

Indonesia mandates local counterpart training certificates for work permit renewal

Individuals who seek to renew their work permits must now submit local counterpart training certificates with their renewal application as proof that they have transferred knowledge to an Indonesian employee. In addition, employers must submit annual reports to the Ministry of Manpower (MoM) confirming they have implemented relevant training programs for knowledge transfer from their foreign employees to the local counterparts. Work permit renewal applications that are not accompanied by training or competency certificates will be rejected.

A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.


Full text of Tax Alert