Reporting for Duty: Indonesia Creates a Centralised Job Vacancies System
In response to the ever-increasing labour demands while simultaneously addressing unemployment issues, Joko Widodo, the Indonesian President, recently signed Presidential Regulation No. 57 of 2023 on Mandatory Reporting of Job Vacancies ("Regulation") into force on 25 September 2023. The Regulation repeals and supersedes the previous regulation on the same subject matter, namely Presidential Decree No. 4 of 1980 on Mandatory Reporting of Job Vacancies, which has become outdated in the evolving landscape of the Indonesian labour market.
By enacting the Regulation, the government hopes to enhance job search and placement through the creation of a centralised job vacancies information system. Both employers and job seekers can use this system. For employers, they can search for workers that match their workforce needs. Conversely, job seekers can find vacancies that are aligned with their skills, interests, and abilities. Meanwhile, for the government, they can use the information on job vacancies for labour planning, labour placement, labour market information reporting, and labour market analysis.
Types of Reporting
The Regulation categorises job vacancies into two types:
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Domestic vacancies; and
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Overseas vacancies.
The reporting obligation only applies to domestic vacancies. Here, employers must report available jobs. They must also file a report when the jobs get filled in.
On the other hand, reporting of overseas job vacancies remains governed by Government Regulation No. 59 of 2021 on Implementation of Protection for Indonesian Migrant Workers, which requires overseas job vacancies to be reported to the One-Stop Integrated Institution (Lembaga Terpadu Satu Atap or "LTSA") and verified by the labour attache and/or foreign service officer appointed at the destination country. After verification, the information on these overseas job vacancies will be published in the Labour Information System.
The reporting by employers, whether for domestic or overseas vacancies, into the system is free of charge.
Centralised System
The reports will be facilitated through, and published in, the country’s online Labour Information System (Sistem Informasi Ketenagakerjaan), which is managed by the Ministry of Manpower.
When reporting job vacancies, an employer must provide the following information:
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Their identity;
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The job title and the number of workers required;
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The duration of the vacancy;
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Information about the job itself, including requirements on age, gender, education level, skills or competencies, work experience, salary or wage, and location.
When an employer files a report on job vacancies, such report will be verified by officials of the Ministry of Manpower, who will then publish such report on the system.
Duties of the Government
The Regulation also outlines the duties and responsibilities of the central government, provincial government, and district/city government in ensuring the effective implementation of the Regulation. These duties responsibilities include developing policies and governance related to information on job vacancies, supervising and overseeing employers’ fulfilment of the reporting obligation, and imposing sanctions on employers that fail to fulfil their obligations.
The government is also authorised award certificates or other forms of appreciation to employers who fulfil their reporting obligations.
Sanctions and Incentive
Under the Regulation, an employer that does not report job vacancies may be subject to administrative sanctions in the form of written warnings.
It should be noted that we are still waiting for the detailed and technical provisions of this new mandatory reporting, as the Ministry of Manpower has yet to issue the implementing regulations for Regulation 57.
Key Takeaways
By enacting the Regulation, the government has laid the groundwork to overhaul the nation’s job vacancies reporting system. This move aims to streamline job matching for both employers and job seekers, ultimately addressing labour market challenges. The next step for the government will be to issue the implementing regulations, which would regulate the technical aspects of the Regulation.
