Manpower Law No. 13 Year 2003

ACT OF THE REPUBLIC OF INDONESIA
NUMBER 13 YEAR 2003
CONCERNING
MANPOWER
WITH THE GRACE OF GOD THE ALMIGHTY,
THE PRESIDENT OF THE REPUBLIC OF
INDONESIA,
Considering:
a. That Indonesia’s national development shall be implemented within the framework of building Indonesians as fully-integrated human beings and of building the whole Indonesian society in order to realize
a society in which there shall be welfare, justice and prosperity based on equity both materially and spiritually with the Pancasila and the 1945 Constitution at its foundation.

b. That in the implementation of national development, workers have a very important role and position as actors of development as well as the goal of development itself;

c. That in accordance with the role and position of workers, manpower development is required to enhance the quality of workers as well as their role and participation in national development and in improving protection for workers and their families in respect to human dignity and values;

d. That protection of workers is intended to safeguard the fundamental rights of workers and to secure the implementation of equal opportunity and equal treatment without discrimination on whatever basis in order to realize the welfare of workers/ labourers and their family by continuing to observe the development of progress made by the world of business;

e. That several acts on manpower are considered no longer relevant to the need and demand of manpower development and hence, need to be abolished and/or revoked;

f. That based on the considerations as mentioned under points a, b, c, d and e, it is necessary to establish an Act concerning Manpower.

In view of:
Article 5 Subsection (1), Article 20 Subsection (2), Article 27 Subsection (2), Article 28 and Article 33 Subsection (1) of the 1945 Constitution.
By the joint approval between
THE HOUSE OF REPRESENTATIVES OF
THE REPUBLIC OF INDONESIA
AND
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
DECIDE:
To stipulate:

ACT CONCERNING MANPOWER AFFAIRS
CHAPTER I
GENERAL PROVISIONS
ARTICLE 1
Under this act, the following definitions shall apply:
1. Manpower affairs are referring to every matter that is related to people who are needed or available for a job before, during and after their employment.
2. Manpower is every individual or person who is able to work in order to produce goods and/ or services either to fulfill his or her own needs or to fulfill the needs of the society.

3. A worker/labourer are any person who works and receives wages or other forms of remuneration.

4. An employer is individual, entrepreneur, legal entities, or other entity that employ manpower by paying them wages or other forms of remuneration.
5. An entrepreneur is:
a. An individual, a partnership or a legal entity that operates a self-owned enterprise;
b. An individual, a partnership or a legal entity that independently operates a non-self-owned enterprise;
c. An individual, a partnership or a legal entity located in Indonesia and representing an enterprise as mentioned under point a and point b that is domiciled outside the territory of Indonesia.

6. An enterprise is:
a. Every form of business, which is either a legal entity or not, which is owned by an individual, a partnership or a legal entity that is either privately owned or state owned, which employs workers/ labourers by paying them wages or other forms of remuneration;

b. Social undertakings and other undertakings with officials in charge and which employ people by paying the wages or other forms of remuneration.

7. Manpower planning is the process of making a manpower plan systematically that is used as a basis and reference for formulating the policy, strategy and implementation of a sustainable manpower development program. read more