For companies worried about a new Indonesian law requiring 10 locals to be hired for every foreigner, the government has a workaround: stock up on drivers and "office boys" to make tea. "There is no need to be afraid," Mr Ruwiyono Septy Priharso, head of the work permit section at the manpower ministry, told an audience of mostly foreign business people at a seminar on the rules.
He suggested the quota could be filled by low-paid staff like office boys, a term that refers to mostly young men employed to do routine tasks. "They do not need to be permanent workers, but it is better if they are."
The rules, first unveiled in July, are undermining appeals by President Joko Widodo for foreign direct investment to help lift an economy growing at the slowest pace since 2009.
The president, who has promised to cut red tape and is courting China to build infrastructure, may be facing a push back by trade unions worried about rising unemployment in the world's fourth-most populous nation.
The manpower regulations also require non-resident foreign company directors to obtain a work permit, a process that can take weeks and needs to be done within the country. International staff now need to get business visas in advance to attend internal meetings in Indonesia, do training or emergency jobs such as fixing machinery.
One stage in the visa process requires applicants to conduct a Skype interview with manpower officials. Priharso acknowledged that technical issues and a lack of staff were making this process difficult, causing a backlog. "The latest regulations contradict the claims that Indonesia wants to create an FDI environment that is more attractive than its South-east Asia neighbors," said Mr Chris Wren, executive director of the British Chamber of Commerce in Indonesia.
He suggested the quota could be filled by low-paid staff like office boys, a term that refers to mostly young men employed to do routine tasks. "They do not need to be permanent workers, but it is better if they are."
The rules, first unveiled in July, are undermining appeals by President Joko Widodo for foreign direct investment to help lift an economy growing at the slowest pace since 2009.
The president, who has promised to cut red tape and is courting China to build infrastructure, may be facing a push back by trade unions worried about rising unemployment in the world's fourth-most populous nation.
The manpower regulations also require non-resident foreign company directors to obtain a work permit, a process that can take weeks and needs to be done within the country. International staff now need to get business visas in advance to attend internal meetings in Indonesia, do training or emergency jobs such as fixing machinery.
One stage in the visa process requires applicants to conduct a Skype interview with manpower officials. Priharso acknowledged that technical issues and a lack of staff were making this process difficult, causing a backlog. "The latest regulations contradict the claims that Indonesia wants to create an FDI environment that is more attractive than its South-east Asia neighbors," said Mr Chris Wren, executive director of the British Chamber of Commerce in Indonesia.
