Indonesian Political, Business & Finance News

Ministry of Manpower penalises 12 companies for foreign worker violations in 2026

| Source: ANTARA_ID Translated from Indonesian | Regulation
Ministry of Manpower penalises 12 companies for foreign worker violations in 2026
Image: ANTARA_ID

Jakarta (ANTARA) — The Ministry of Manpower has taken action against 12 companies deemed to have violated regulations on the use of foreign workers throughout January to February 2026 across six provinces.

Director General of Labour Inspection and Occupational Safety and Health at the Ministry of Manpower, Ismail Pakaya, said in a statement in Jakarta on Tuesday that his office had imposed total fines of Rp4,482,000,000.

“The amount of the fine imposed on each company varies, depending on the number of foreign workers deemed to have been employed in contravention of the regulations,” Ismail said.

The enforcement action, he continued, was carried out to ensure that labour standards are genuinely upheld in the field and to provide certainty for both workers and law-abiding businesses.

The fines will be deposited into the state treasury as Non-Tax State Revenue (PNBP).

Ismail affirmed that compliance operations concerning labour standards, particularly the use of foreign workers, will continue throughout 2026. He noted that the issue of foreign workers has become a matter of public concern and therefore needs to be addressed through swift, precise, and measurable oversight to ensure effective implementation of standards in the workplace.

He explained that company compliance inspections regarding the use of foreign workers refer to Government Regulation Number 34 of 2021 on the Use of Foreign Workers as well as provisions under the Job Creation Law. Companies still employing foreign workers in contravention of regulations have been asked to make immediate adjustments.

“Should companies fail to make adjustments, they will be subject to action in accordance with prevailing laws and regulations,” Ismail said.

In addition, Ismail opened channels for public complaints regarding suspected violations of foreign worker employment standards or misuse of foreign worker permits. Every public report will serve as evaluation material and may be followed up according to supervisory priorities.

Meanwhile, Director of Labour Standards Inspection at the Ministry of Manpower, Rinaldi Umar, explained that the foreign worker employment violations were discovered based on inspection results by provincial Labour Inspectors working alongside Ministry of Manpower Labour Inspectors who conducted direct field visits.

“Besides the companies that have already been fined, there are still several companies in the process of payment and fine calculation. It is possible that state revenue from this sector will increase further,” Rinaldi said.

The 12 companies that were fined are based in six provinces: West Kalimantan, Central Kalimantan, Riau Islands, North Sumatra, DKI Jakarta, and Central Sulawesi.

The highest number of penalised companies was in Central Sulawesi. However, the largest fine was imposed on PT BAP from West Kalimantan, amounting to Rp2,172,000,000, followed by PT BIS in North Sumatra at Rp972,000,000.

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