2021: Government Regulation 34/2021 introduced no material change in relation to the regime applied previously concerning the employment of foreign key personnel. As per the previous regime, the employment of foreign key personnel [except for shareholding directors and commissioners meeting minimum shareholding thresholds] is subject to governmental approval, and the employment of foreigners to certain key management positions, namely for Chief Executive Officer, is prohibited. In 2019, the Ministry of Manpower issued Decree 228/2019 which establishes the positive list of positions openned to be occupied by expatriates. The Decree restates that the positions of Commissioners or Directors who are not managing personnel are open for Expatriates, so long as it does not contradict with any laws or regulations. However, there is no indication that the Decree extends to non-shareholding directors and commissioners the exemption of government approval previously under the PR 20/2018 on foreign workers utilization. The Ministry of Manpower issued Decree 349/2019 on December 31 revising the positions which cannot by occupied by foreigners previously enshrined in Decree 40/2012. The position of Chief Executive Officer has been lifted from the list, hence foreigners are now allowed to assume such roles. They remain prohibited from occupying several other positions nonetheless, such as Personnel Director, Industrial Relation Manager, Human Reource Manager. For the purposes of the OECD FDIRRI, it is assumed that government approval for the employment of foreigners in key management positions is based on economic needs test [only shareholding directors and commissioners are exempt from approval requirements and upon meeting minimum investment thresholds], and the employment of foreigners in certain management positions remains prohibited, even though foreigners ahve been allowed since 2021 to occupy the position of 'chief executive officer' (as per legal practitioners' clarifications, the term 'CEO' employed in the legislation does not refer to the legally recognised post of President-Director; it remains nonetheless a high-level management position, equivalent to that of an Chief Operating Officer).
"CHAPTER I - GENERAL PROVISIONS
Article 1
(1) In this Government Regulation what is meant by:
a. Foreign Workers, hereinafter abbreviated as TKA, are foreign citizens holding visas with the intention of working in Indonesian territory.
b. TKA Employer is a legal entity established under Indonesian law or another entity that employs foreign workers by paying wages or other forms of remuneration.
[...]
CHAPTER II - OBLIGATIONS AND PROHIBITIONS FOR FOREIGN WORKERS
Part One - General
Section 2
(1) Every Employer of Foreign Workers must prioritize the use of Indonesian workers in all types of positions available.
(2) In the event that the position as referred to in paragraph (1) cannot yet be occupied by Indonesian workers, the position can be held by a foreign worker.
(3) The use of foreign workers as referred to in paragraph (2) shall take into account the conditions of the domestic labor market.
[...]
Article 4
(1) TKA can only be employed by the TKA Employer in a work relationship for a certain position and for a certain time, and have the competence according to the position to be occupied.
(2) Certain positions that can be occupied by foreign workers as referred to in paragraph (1) shall be determined by the Minister after receiving input from the relevant ministries / institutions.
Article 5
(1) TKA Employers can employ TKA who are currently employed by other TKA Employers for the same position as:
a. directors or commissioners; or
b. Foreign workers in the vocational education and vocational training sector, the digital economy sector, and the oil and gas sector for cooperation contract contractors.
(2) In the event that an TKA Employer will employ a TKA as referred to in paragraph (1), the TKA must obtain approval from the first TKA Employer.
(3) TKA as referred to in paragraph (1) shall be employed no later than the end of the period as stated in the Ratification of the first TKA Employer RPTKA.
(4) Certain positions in the vocational education sector and vocational training, the digital economy sector, and the oil and gas sector for cooperation contract contractors which can be concurrently referred to in paragraph (1) letter b shall be determined by the Minister after receiving input from the relevant ministries / agencies.
Article 6
Every TKA Employer  is required to have an RPTKA which is endorsed by the Minister or an appointed official. [...]
Article 7
(1) TKA Employers are required to:
a. appointing Indonesian citizen workers as foreign workers who are employed to transfer technology and transfer expertise from foreign workers;
b. carry out work education and training for TKA Associate Workers as referred to in letter a in accordance with the qualifications of the position occupied by the TKA; and
c. return the foreign workers to their home countries after the work agreement ends. [...]
(3) The provisions as referred to in paragraph (1) letter a, letter b, and paragraph (2) do not apply to:
a. directors and commissioners;
b. head of representative office;
c. builders, administrators and supervisors of the foundation; and
d. TKA who are hired for temporary work.
[...]
Part Three - Prohibition
Article 10
(1) Employers of foreign workers are prohibited from employing foreign workers with multiple positions in the same company.
Article 11
(1) Employers of foreign workers are prohibited from employing foreign workers in positions in charge of personnel.
(2) The position in charge of personnel as referred to in paragraph (1) shall be determined by the Minister after receiving input from the relevant ministries / institutions.
CHAPTER III - Ratification of the Plan of Use of Foreign Workers
Part One - Procedures for the Application for Approval of the Plan for the Use of Foreign Workers
Article 12
(1) To obtain RPTKA ratification, the TKA Employer must submit an application online to the Minister or the appointed official.
(2) Applications for RPTKA Ratification as referred to in paragraph (1) shall be submitted by the TKA Employer containing at least:
a. the identity of the TKA Employer;
b. reasons for using TKA;
c. position or position of foreign workers in the organizational structure of the company;
d. number of foreign workers;
e. period of use of foreign workers;
f. TKA work location;
g. the identity of the TKA Associate Worker; and
h. the plan to absorb Indonesian workers every year.
[...]
Article 16
(1) The ratification of the RPTKA consists of:
a. RPTKA for temporary work;
b. RPTKA for work more than 6 (six) months;
c. RPTKA non-DKPTKA; and
d. RPTKA KEK.
Article 17 [...]
(4) Ratification of the RPTKA KEK for the position of director or commissioner, is given once and is valid as long as the foreign worker concerned is a director or commissioner.
[...]
Article 19
(1) RPTKA ratification as referred to in Article 16 does not apply to:
a. directors or commissioners with certain share ownership, or shareholders in accordance with the provisions of laws and regulations;
b. diplomatic and consular staff at representative offices of foreign countries; or
c. The TKA needed by the TKA Employer in the types of production activities that were stopped due to emergencies, vocational, technology-based start-ups , business visits, and research for a certain period of time.
(2) To employ foreign workers in technology-based and vocational-based start-up activities for a certain period of time as referred to in paragraph (1) letter c, the TKA Employer must submit data on the prospective TKA online to the Minister or the appointed official.
(3) The positions for technology and vocational based start-up activities as referred to in paragraph (2) shall be determined by the Minister after obtaining input from the relevant ministries / agencies.
(4) The minister or the appointed official as referred to in paragraph (2) submits data on the prospective foreign workers online to the minister who is in charge of government affairs in the field of law and human rights or the appointed official as a recommendation to obtain a visa and residence permit for work.
(5) The period of time for foreign workers working in technology-based and vocational-based start-up activities as referred to in paragraph (3) is given a maximum of 3 (three) months.
(6) Employers of foreign workers who will employ foreign workers in technology-based and vocational-based start-up activities beyond the timeframe referred to in paragraph (5) are required to have RPTKA Ratification.[...]"(Government Regulation Number 34 of 2021 concerning the Use of Foreign Workers [google translation])
-------------------------------------
"CHAPTER I - GENERAL PROVISION
Article 1.
Referred to in this law as: [...]
2. Manpower shall be everyone capable of undertaking job to produce goods and/or services for fulfilling the need of either the relevant person or the society.
3. Worker/labor shall be everyone working by receiving a wage or compensation in other forms. [...]
13. Expatriates shall be foreign citizens holding visa with the intention to work in the Indonesian territory.
[...]
CHAPTER VIII - ASSIGNMENT OF EXPATRIATES . [...]
Article 42
Every employer who employs foreign workers is required to have a plan for hiring foreign workers which is approved by the Central Government.
(2) Individual employers are prohibited from employing foreign workers.
(3) The provisions referred to in paragraph (1) do not apply to:
a. directors or commissioners with certain share ownership or shareholders in accordance with the provisions of laws and regulations;
b. diplomatic and consular employees at representative offices of foreign countries; or
c. foreign workers needed by employers in types of production activities that have stopped due to emergencies, vocations, technology-based start-ups, business visits, and research for a certain period of time.
(4) Foreign workers may be employed in Indonesia only in an employment relationship for a certain position and a certain time and have competence in accordance with the position to be occupied.
(5) Foreign workers are prohibited from occupying positions in charge of personnel.
(6) Provisions regarding certain positions and certain times as referred to in paragraph (4) are regulated in Government Regulations [...]"(MANPOWER ACT No. 13/2003, as amended by Law of the Republic of Indonesia No. 11 of 2020 on Job Creation [google translation])
-------------------------------------
"The Minister of Manpower and Transmigration of the Republic of Indonesia,
Considering: that in order to implement the provision of Article 46 paragraph (2) of Act Number 13 Year 2003 concerning Manpower, it is necessary to stipulate a Ministerial Decree on Certain Occupations Banned from Occupation of Foreign Workers; [...] 
Has decided:
FIRST: Certain positions prohibited from occupation by Foreign Workers are contained in the Attachment of this Ministerial Decree.
[...]
ATTACHMENT
Decree of the Minister of Manpower and Transmigration of the Republic of Indonesia Number 40 Year 2012 Regarding Certain Positions Prohibited from Occupation by Foreign Workers
1. Personnel Director; 2. Industrial Relation Manager; 3. Human Reource Manager; [9. Chief Executive Officer repealed by the 349/2019] [...]"(Ministerial Decree No. 349 of 31 December 2019 on Certain Positions Restricted for Expatriates [google translation], replacing the previous Ministerial Decree 40/2012 on Specific Positions Prohibited from Occupation by Foreign Workers  [google translation])
-------------------------------------
"Part Ten Immigration Recommendations
Paragraph 1 General
Article 82
(1) For PMA, it is given ease of service and/or licensing for immigration facilities by the ministry that administers government affairs in the fields of law and human rights.
(2) Ease of service and/or licensing of immigration facilities as referred to in paragraph (1) shall be granted after obtaining a recommendation from a government agency having the task of administering government affairs in the field of investment coordination.
(3) Recommendations as referred to in paragraph (2) are in the form of:
a. recommendation to change the status of a visit stay permit to a limited stay permit; And
b. recommendation to change the status of a limited stay permit to a permanent residence permit.
Paragraph 2
Recommendation of Changing the Status of a Visit Stay Permit to a Limited Stay Permit
Article 83
(1) The recommendation to change the status of a visit stay permit to a limited stay permit as referred to in Article 82 paragraph (3) letter a is a requirement to obtain approval for the change of status from a visit stay permit to a limited stay permit.
(2) Recommendations for changing the status of a visit stay permit to a limited stay permit as referred to in paragraph (1) are given to:
a. foreigners as shareholders who serve as directors or commissioners of the company; And
b. foreigners as shareholders who do not serve as directors or commissioners of the company.
(3) Foreigners as shareholders as referred to in paragraph (2) must meet the criteria, namely:
a. as a shareholder and serving as a director or commissioner of the company with the provision that share ownership is at least IDR 1,000,000,000.00 (one billion Rupiah) or the equivalent in United States dollars stated in the deed; or
b. as a shareholder and not as a director or commissioner of a company with the provision that share ownership is at least IDR 1,125,000,000.00 (one billion one hundred twenty-five million Rupiah) or the equivalent in United States dollars stated in the deed.
[...]
Paragraph 3
Recommendation of Changing the Status of a Visit Stay Permit to a Permanent Stay Permit
Article 84
(1) The recommendation to change the status of a limited stay permit to a permanent stay permit as referred to in Article 82 paragraph (3) letter b is a requirement for obtaining approval for the transfer of the status of a limited stay permit to a permanent stay permit.
(2) Recommendations for changing the status of a limited stay permit to become a permanent stay permit as referred to in paragraph (1) are given to:
a. foreigners as shareholders who serve as directors or commissioners of the company; And
b. foreigners as shareholders who do not serve as directors or commissioners of the company.
(3) Foreigners as shareholders as referred to in paragraph (2) must meet the criteria, namely:
a. as a shareholder and serving as a director or commissioner of the company with the provision that share ownership is at least IDR 1,000,000,000.00 (one billion Rupiah) or the equivalent in United States dollars stated in the deed; or
b. as a shareholder and not as a director or commissioner of a company with the provision that share ownership is at least IDR 10,000,000,000.00 (ten billion Rupiah) or the equivalent in United States dollars stated in the deed.
[...]
Article 85
(1) In the case of foreigners as shareholders, either as directors or commissioners who do not meet the criteria for share ownership as referred to in Article 83 paragraph (3) and Article 84 paragraph (3), the application for permission to employ foreign workers shall be submitted in advance to the ministry which organizes government affairs in the field of manpower as a basis:
a. granting approval for changing the status of a visit stay permit to a limited stay permit or extension of a limited stay permit; And
b. granting approval for changing the status of a limited stay permit to a permanent stay permit or extension of a permanent stay permit, by the ministry in charge of government affairs in the field of law and human rights.[...]" (REGULATION OF THE INVESTMENT COORDINATING BOARD OF THE REPUBLIC OF INDONESIA NUMBER 4 OF 2021 CONCERNING GUIDELINES AND PROCEDURES FOR RISK-BASED BUSINESS LICENSING AND INVESTMENT FACILITIES [google translation])
-------------------------------------
Previously: up to 2018
-------------------------------------
"Chapter II - Foreign Workers Utilization [...]
Article 4
(1) Every Employer of TKA [foreign worker] is obligated to prioritise Indonesia Workers utilisation in all types of positions available.
(2) In the event that the position as referred to in section (1) has not been able to be occupied by Indoneisian workers, the position may be occupied by TKA. A
Article 5
(1) TKA is prohibited from occupying a position in charge of personnel affairs and/or certain positions.
(2) A certain position as referred to in section (1) is determined by the Minister.
[...]
Article 7
(1) Every TKA Employer using TKA must have an RPTKA certified by Minister or appointed office.
(2) RPTKA as referred to in paragraph (1) shall at least contain:
a. the reason for using TKA;
b. the position and / or position of TKA within the organizational structure of the enterprise concerned;
c. the duration of use of TKA; and
d. designation of Indonesian workforce as a companion TKA employed. 
(3) To obtain ratification of the RPTKA as referred to in paragraph (1), the TKA Employer shall apply to the Minister or designated officer.
[...]
Article 9
Ratification of the RPTKA as referred to in Article 8 is a permit to employ TKA. 
Article 10
(1) TKA Employers are not required to have a RPTKA to employ TKA which are:
a. shareholders who serve as members of the Board of Directors or members of the Board of Commissioners of a TKA Employer;
b. diplomatic and consular officers at representative offices of foreign countries; or
c. TKA on the type of work needed by the government.
(2) The type of work required by the government as referred to in paragraph (1) letter c shall be determined by the Minister. [...]" (Presidential Regulation Number 20 of 2018 on Foreign Workers Utilisation [repealed by GR 34/2021][google translaton])
-------------------------------------
"CHAPTER VII - PROVISIONS AND PROCEDURES GRANTING STAY PERMIT FACILITY TO INVESTOR
Article 47
Immigration facilities in the field of Investment consist of:
a. recommendation for granting limited stay visa;
b. recommendation for granting of transfer stay permit status to be a limited stay permit; and
c. recommendation for granting of transfer limited stay permit status to be permanent stay permit.
[...]
Article 49
(1) The recommendation of status transfer from the visit permit to be a limited stay permit as referred to in Article 47 letter b is a requirement to obtain the approval of the status of visit permit to be a limited stay permit.
(2) The recommendation on the change of status of the stay permit to become limited stay permit as referred to in paragraph (1) is given to: 
a. foreigners as shareholders who serve as board of directors or commissioners of the company; and
b. foreigners as shareholders who do not serve as board of directors or commissioners of the company.
(3) Foreigners as shareholders as referred to in paragraph (2) must meet the criteria, namely:
a. as a shareholder and serves as a board of directors or commissioner of the company with the terms of ownership of at least Rp1,000,000,000.00 (one billion Rupiah) or the equivalent in United States dollars contained in the deed; or
b. as a shareholder and not as a board of directors or commissioner of the company with the terms of ownership of at least Rp1,125,000,000.00 (one billion one hundred twenty-five million Rupiah) or the equivalent in US dollars contained in the deed.
[...]
Article 50
(1) The recommendation of the status transfer of a limited stay permit to be a permanent stay permit as referred to in Article 47 letter c is a requirement to obtain an approval of the status transfer of a limited stay permit to be a permanent stay permit. [...]
Foreigners as shareholders as referred to in paragraph (2) must meet the criteria, namely: 
a. as a shareholder and serves as a board of directors or commissioner of the company with the terms of ownership of at least  Rp1,000,000,000.00 (one billion Rupiah) or the equivalent in United States dollarscontained in the deed; or 
b. as a shareholder and not as a board of directors or commissioner of the company with the terms of ownership of at least Rp10,000,000,000.00 (one billion one hundred twenty-five million Rupiah) or the equivalent in US dollars contained in the deed.
[...]
Article 50A
In the case of foreigners as shareholders, whether as board of directors or commissioners who do not meet the criteria of share ownership as referred to in Article 48 paragraph (3), Article 49 paragraph (3) and Article 50 paragraph (3), requests for permission to use foreign workers are submitted firstly to the ministry which organizes governmental affairs in the field of labor as a basis:
a. granting limited stay visa approval;
b. granting approval for the change of status of the visit stay permit to become a limited stay permit or an extension of a limited stay permit; and
c. approval of the change of status of a limited stay permit to become a permanent stay permit or an extension of a permanent stay permit, by the ministry that carries out government affairs in the field of law and human rights in this case the Directorate General of Immigration. [...]" (BKPM Regulation No. 5/2019 amending BKPM Regulation No. 6/2018 concerning Guidelines and Procedures for Licensing and Investment Facilities [repealed by BKPM Reg 4/2021])
Government Regulation Number 34 of 2021 concerning the Use of Foreign Workers [google translation]
MANPOWER ACT No. 13/2003, as amended by Law of the Republic of Indonesia No. 11 of 2020 on Job Creation [google translation]
Ministerial Decree No. 349 of 31 December 2019 on Certain Positions Restricted for Expatriates [google translation], replacing the previous Ministerial Decree 40/2012 on Specific Positions Prohibited from Occupation by Foreign Workers  [google translation]
REGULATION OF THE INVESTMENT COORDINATING BOARD OF THE REPUBLIC OF INDONESIA NUMBER 4 OF 2021 CONCERNING GUIDELINES AND PROCEDURES FOR RISK-BASED BUSINESS LICENSING AND INVESTMENT FACILITIES [google translation]
Presidential Regulation Number 20 of 2018 on Foreign Workers Utilisation [repealed by GR 34/2021] [google translation]
BKPM Regulation No. 5/2019 amending BKPM Regulation No. 6/2018 concerning Guidelines and Procedures for Licensing and Investment Facilities [repealed by BKPM Reg 4/2021] [google translation]
[<a href="https://jdih.kemnaker.go.id/asset/data_puue/2021_34_PP_English.pdf">Reg</a>],[<a href="https://peraturan.bpk.go.id/Home/Details/43013/uu-no-13-tahun-2003">Act</a>],[<a href="https://jdih.setneg.go.id/viewpdfperaturan/Salinan%20UU%20Nomor%2011%20Tahun%202020.pdf">Law</a>],[<a href="https://jdih.kemnaker.go.id/katalog-250-Keputusan%20Menteri.html">Decree</a>],[<a href="https://jdih.kemnaker.go.id/katalog-1636-Keputusan%20Menaker.html">Decree</a>],[<a href="https://jdih.kemnaker.go.id/english-katalog-27-Presidential%20Regulation.html">Reg</a>],[<a href="https://peraturan.bpk.go.id/Home/Details/168903/peraturan-bkpm-no-4-tahun-2021">Reg</a>],[<a href="https://peraturan.bpk.go.id/Home/Details/168905/peraturan-bkpm-no-5-tahun-2019">Reg</a>],[<a href="https://www.mondaq.com/employee-rights-labour-relations/1248622/how-to-hire-and-fire-expatriate-workers-in-indonesia">Other</a>]