Indonesia clarifies PKWT renewal rules after UU 6/2023
Manpower Ministry issues circular tightening definition of allowable PKWT extensions.
The circular is not new law — it is the Ministry signaling that it intends to enforce the spirit of UU 6/2023, which limited PKWT total duration to five years including any extensions. Companies treating PKWT as a long-term flexible employment instrument should expect challenges.
Operational test: any role that has had the same person on a PKWT for more than 24 months is probably a PKWTT in disguise. Convert it. The downside risk — disputes, back-pay claims, and potential reclassification — is materially higher now than it was six months ago.
What this means for solo HR
If you've been rolling PKWT contracts annually for the same role, expect tighter scrutiny. Move long-running PKWTs to PKWTT before the next audit.
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Indonesia's Manpower Ministry just tightened the PKWT contract reading. Any role on the same PKWT for more than 24 months is probably a PKWTT in disguise. Convert it before the audit, not after. https://hrasia.co/news/indonesia-pkwt-renewal-clarification
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