Salaries of Foreign Workers Seconded to Indonesia

Labor & Employment

By Wynne Prasetyo

Bank Indonesia has refined its position regarding the exemption of a cross-border supply of services from the currency requirement, particularly in the case of a foreigner who is employed by a foreign company and seconded to an Indonesian company (Article 8.(1).b.1 of Bank Indonesia Regulation No. 17/3/PBI/2015 and Article C.3.b.1 of Bank Indonesia Circular Letter No. 17/11/DKSP).

Previously, Bank Indonesia took the position that if the salary of such foreigner was paid by the Indonesian company, it had to be paid in Rupiah.

Presently, Bank Indonesia views that the salary of a seconded foreigner may be paid in foreign currency even if the payer of the salary is the Indonesian company, provided that the seconded foreigner receives an assignment letter (surat tugas) from the home employer for his or her secondment to the Indonesian company.

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