Indonesia has imposed $266K in foreign worker fines on 12 companies for violating employment regulations. The Ministry of Manpower, or Kementerian Ketenagakerjaan (Kemnaker), carried out the enforcement between January and February 2026 across six provinces.
Authorities found that the companies failed to comply with rules governing the use of foreign workers. As a result, the government issued financial penalties totaling Rp4.48 billion, approximately $266,000. Officials also confirmed that inspections will continue throughout the year to strengthen labor law compliance.
Foreign Worker Fines Reach $266K Across Six Provinces
The Ministry of Manpower confirmed the total amount of the penalties. “The total fine amounts to Rp4,482,000,000. The enforcement was carried out from January to February 2026 in six provinces,” said Ismail Pakaya in a press statement on Monday (23/2/2026).
Authorities imposed different penalty amounts on each company. “The amount of the fine imposed on each company differs, depending on the number of foreign workers found to have been employed in violation of the regulations,” he emphasized. Regulators based the calculations on how many foreign workers each firm employed outside the permitted framework.
Central Sulawesi recorded the highest number of violating companies. Meanwhile, the largest fine was targeted at PT BAP in West Kalimantan, which received Rp2.17 billion (approximately $129,000) in penalties. PT BIS in North Sumatra followed with Rp972 million (approximately $58,000). Other affected provinces included Central Kalimantan, the Riau Islands, and Jakarta.
Legal Basis Behind Indonesia’s Foreign Worker Fines
Officials grounded the enforcement actions in Government Regulation No. 34 of 2021 on the Employment of Foreign Workers. In addition, authorities relied on provisions under the Job Creation Law to guide inspections and sanctions. These rules set clear standards for companies that hire foreign nationals.
Through this legal framework, the government aims to ensure proper documentation, permits, and compliance procedures. Inspectors reviewed whether companies followed administrative and reporting requirements. When firms failed to meet these standards, authorities issued financial penalties in line with existing regulations.
The ministry also urged non-compliant businesses to take corrective action immediately. “If companies fail to make adjustments, actions will be taken in accordance with prevailing laws and regulations,” Ismail said. This warning signals that regulators will not tolerate continued violations.
Labor Ministry Intensifies Foreign Worker Compliance in 2026
Beyond the recent sanctions, the ministry plans to expand labor compliance inspections throughout 2026. Ismail stressed that oversight of foreign workers remains a public concern and requires consistent supervision. Authorities, therefore, plan to conduct swift, precise, and measurable enforcement to ensure effective implementation of labor standards in workplaces.
He explained that compliance operations related to labor norms, particularly concerning the employment of foreign workers, will continue throughout 2026. The ministry seeks to provide certainty for workers and businesses that follow the law while addressing violations firmly.
Meanwhile, Director of Labor Norm Inspection Development Rinaldi Umar described how inspectors uncovered the violations. He stated that provincial labor inspectors worked together with ministry officials who conducted direct field visits. This coordinated approach allowed regulators to verify compliance on the ground.
Rinaldi also noted that enforcement may not stop with the current penalties. “In addition to the companies that have already been fined, several companies are still in the process of payment and calculation of fines. It is possible that state revenue from this sector will increase,” he said. This statement suggests that total foreign worker fines could rise further in the coming months.
What the Foreign Worker Fines Mean for Businesses
The latest foreign worker fines send a clear message to companies operating in Indonesia. Authorities expect strict compliance with employment regulations and will impose financial penalties when violations occur. Companies that hire foreign workers must therefore review their permits, reporting procedures, and workforce documentation.
As inspections continue throughout 2026, businesses face greater regulatory scrutiny. Firms that act proactively can reduce legal risk and avoid costly sanctions. However, companies that ignore the rules may encounter additional penalties under Indonesia’s labor laws.
Source: inews.id, mureks.co.id
Image: BISNIS/Reyhan Fernanda Fajarihza.
