Employment contract of expatriate in Indonesia has specific charateristic compare to employment contract of Indonesian. It is fair to say that specific  charateristic of expatriate employment contract is mainly purposed to filter the qualification of expatriate  that will work in Indonesia. Through this filter, the Indonesian government wishes that hiring expatriate is the professional ones that transfer of their knowledge to local employee.

Given to that goals, these are 5 charateristic of employment contract for expatriate in Indonesia:

1. It should be in form of Fixed-Term Contract

According to Government Regulation No.35 of 2021 Expatriate employment contract must be in form of Fixed-Term Contract.  The company and expatriate may agree on the period of Fixed-Term Contract, however, it is only may last for maximum 5 (five) years.

The Fixed-Term contract must be drawn in Indonesian languange while there is no prohibition to make it into bilingual  as long as one of the languange is Indonesian languange. This Fixed-Term contract must be registered to the manpower office of the location of the company.

2. Must have Stay Permit

Every expatriate work in Indonesia must have Stay Permita

3.  Only allowed to work in 1 company

4. Prohibition to work in specific job title

5. No compensation or severance payment obtained when termination occurs.