Indonesia: New Insurance Program for Short-Term Foreign Workers Introduced

The Indonesian government has introduced a new life insurance and medical expense insurance requirement for foreign workers working in Indonesia for six months or less. Employers must enroll such workers into an insurance policy that is licensed by the Financial Services Authority (Otoritas Jasa Keuangan) and integrated with the online application system from the Ministry of Manpower (TKA Online) based on the following premium schedule: One month: IDR 762,000; Three months: IDR 1,715,000; and Six months: IDR 2,477,000. The Ministry of Manpower has also introduced a new insurance program called ASTAKA (Asuransi Tenaga Kerja Asing/Insurance for Foreign Worker), which fully complies with the government’s new insurance requirement that employers can avail. To comply with the new requirement, employers may register through the ASTAKA website, purchase the appropriate insurance premium for their foreign national worker and activate the insurance after the ITAS (temporary stay permit) issuance. Although the government stated that the new requirement will be effective immediately, the Ministry of Manpower has yet to implement the new requirement. Fragomen is monitoring closely for more updates.