Implementing Regulation on the Minimum Standard of Employment Services

Minister of Labor and Transmigration Regulation No. PER.15/MEN/X/2010 on the Minimum Standard of Employment Services (‘Regulation’) was recently issued to implement Article 4 (1) of Government Regulation No. 65 of 2005 on Guidelines in Composing and Implementing Minimum Standards of Services. The minimum standard of employment services is a set of provisions on types and quality of services that serve as the requirements, for both the central and the regional government, to guarantee the fairness of access and quality public employment services.

The minimum standard of employment services consists of work training services, worker placement services, dispute settlement services, membership of Employee Social Security (Jaminan Sosial Tenaga Kerja) services, and labor supervision services. The Regulation also provides further details on the operational guidelines in providing the minimum standard of services, budget components for each service, and systematic guidelines for the annual report.

In practice, employment services will be provided by the regional government in coordination with certain labor institutions/agencies from the province and the district/city. The governor and regent/mayor will be responsible for the implementation of the minimum standard of employment services and obliged to submit an annual report (the format of which is set out in an attachment to the Regulation) on the achievement of the minimum standard of employment services to the Minister of Labor and Transmigration.

As feedback, the Minister of Labor and Transmigration will monitor, evaluate and supervise the implementation of the minimum standard of employment services. The monitoring and evaluation report will be used as a basis for potential future development and improvement. Regional governments that do not implement the minimum standard of employment services within the given period of time (i.e. up to 2016) will be subject to sanction.

The Regulation was issued on 29 October 2010 and has been in force since 5 November 2010.