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DECREE OF THE MINISTER OF MANPOWER AND TRANSMIGRATION REPUBLIC OF INDONESIA NUMBER KEP-101/MEN/VI/2004 OF 2004 ABOUT LICENSING PROCEDURES FOR SERVICE PROVIDER COMPANY EMPLOYEES / WORKERS MINISTER OF MANPOWER AND TRANSMIGRATION OF THE REPUBLIC OF INDONESIA Considering: a. that the implementation of Article 66 paragraph (3) of Law Number 13 Year 2003 on Manpower, should be regulated on the procedure for licensing services company worker / laborer; b. that it is necessary to set a ministerial decree. In view of: 1. Law No. 3 of 1951 on Applicability Statement Control Act No. 23 of 1948 Labour of the Republic of Indonesia for Indonesia (State Gazette Year 1951 No. 4); 2. Law Number 13 Year 2003 on Manpower (the Republic of Indonesia Year 2003 Number 39, Additional State Gazette Republic of Indonesia Number 4279); 3. Decree of the President of the Republic of Indonesia Number 228 / M 2001 on the Establishment of Mutual Aid Cabinet. Notice: 1. The reasoning of the Secretariat of the National Tripartite Cooperation Body dated 20 April 2004; 2. Agreement at the Plenary Meeting of the National Tripartite Cooperation Body dated 23 April 2004.

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DECIDED: Specify: DECREE OF THE MINISTER OF MANPOWER AND TRANSMIGRATION REPUBLIC OF INDONESIA REGARDING THE SERVICE PROVIDER LICENSING COMPANY EMPLOYEES / WORKERS CHAPTER I GENERAL PROVISIONS Article 1 In this Decree referred to as: 1. Worker / laborer is someone who works for a wage or other forms of remuneration 2. Employers are: a. Individual, association, or corporation who operates an enterprise of his own; b. Individual, association, or corporation which is independently run company; c. Individual, association, or corporation who was in Indonesia represent a company referred to in paragraphs a and b are domiciled outside the territory of Indonesia. 3. Company is: a. Any form of business or legal entity, owned by an individual, a partnership, or a legal entity, either private or state-owned workers / laborers by paying them wages or other forms of remuneration; b. Social efforts and other efforts that have a board and hire someone else to pay wages or other forms of remuneration. 4. Company service providers are legal entities that provide services for business activities of workers / laborers to be employed in the company of the employer.

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5. Minister is the Minister of Manpower and Transmigration. Article 2 (1)To be the provider of service / labor unions, companies must have operating permits from the government agency responsible for manpower affairs in regencies / cities in accordance domicile services companies, workers / laborers. (2)To obtain the operational permit service company workers / laborers, the company delivered the petition to attach: a. copy of ratification as a form of limited liability corporation or cooperative; b. copy articles of association in which business activities include the provision of services worker / laborer; c. copy of Business License; d. report obligatory copy of a valid. (3)The government agency responsible for employment as referred to in paragraph (1) have been issued operating licenses for an application that meets the requirements referred to in paragraph (2) within a period of 30 (thirty) working days from receipt of the application. Article 3 Operating permit as referred to in Article 2 applies throughout Indonesia for a period of 5 (five) years and renewable for the same period. Article 4 In the case of service providers to get a job from the company providing the work both parties must make a written agreement that at least the following a. type of work to be performed by the worker / laborer from service providers; b. affirmation that in performing the work referred to a letter, there is a working relationship with the service provider company workers / laborers

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employed so that the service provider wages and welfare protection, working conditions and disputes arising in the responsibility of the service company workers / laborers ; c. assertion that the service providers of workers / laborers are willing to accept the workers / laborers of the company's service provider / labor unions prior to the kinds of jobs that exist continuously in the employer company in the event of replacement services companies, workers / laborers. Article 5 (1)The agreement referred to in Article 4 must be registered with the agency responsible for manpower county / city where service providers of workers / laborers carry out the work.
(2) In the event services company worker / laborer performing work in the

employer company is located in an area of more than one district / city in one province, then the registration is done at the agency in charge of provincial employment.
(3) In the event services company worker / laborer performing work in the

employer company is located in an area of more than one province, then the registration is done at the Directorate General of Industrial Relations. (4)Register the agreement referred to in paragraph (1), paragraph (2) and paragraph (3) must attach a draft agreement. Article 6 (1)In conducting the registration referred to in Article 4 of the official agency responsible for conducting research in the field of employment agreement. (2)In terms of the agreement referred to in paragraph (1) in compliance with the provisions referred to in Article 4, the official in charge of labor affairs published evidence of registration.

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(3)In the event of any provisions that are inconsistent with the provisions of Article 4, the official in charge of manpower to make notes on the evidence that the registration agreement is not in accordance with the provisions of Article 4. Article 7 (1)In the event services companies, workers / laborers do not register the service provision contract workers / laborers, the government agency responsible for manpower affairs as referred to in Article 2 shall revoke the operating license service company worker / laborer in question after a recommendation from the agency responsible for the field of employment referred to in Article 5. (2)In terms of operating licenses revoked, the rights of workers / laborers remains the responsibility of service providers worker / laborer in question. Article 8 Ministerial Decree comes into force on the date of enactment.

Stipulated in Jakarta On the Date June 21, 2004 MINISTER OF MANPOWER AND TRANSMIGRATION OF THE REPUBLIC OF INDONESIA Signed. JACOB NUWA WEA