Indonesia's Internship Program Policies

Internships, or "magang kerja" in Indonesia, are training programs designed for vocational students and final-year university students. They serve as both a graduation requirement and a means to provide practical experience before entering the job market.

Internships are regulated by law to ensure proper execution, and companies must understand these regulations before hiring interns.

In Indonesia, internship regulations are outlined in the Employment Law No. 13 of 2003, specifically Articles 21 through 29. These articles have not been altered or repealed by the Omnibus Law on Job Creation, making them still applicable. Additionally, the Ministerial Regulation No. 36 of 2016 on Domestic Internship Implementation sets out further guidelines.

Internships are integrated into the broader system of work training, combining institutional training with hands-on experience under the guidance of experienced workers in a company. The goal is for interns to master specific skills or expertise.

Upon successful completion, interns are entitled to receive qualification recognition or certification. Importantly, companies are prohibited from charging fees to interns throughout the internship process.

Despite being part of a training program, internships must be formalized through a written agreement between the intern and the employer, as specified in Article 22 of the Employment Law:

• The internship must be based on a written agreement between the intern and the employer.
  
• The agreement must outline the rights and obligations of both parties and the duration of the internship.
  
• Internships conducted without such an agreement are considered invalid, and the intern’s status may change to that of a regular employee.

An internship agreement should cover the following key elements:

1. Rights and obligations of the intern
2. Rights and obligations of the employer
3. The internship program details
4. The amount of allowance provided

The agreement must be approved by the local Department of Manpower. If not approved within three working days, the internship agreement can proceed.

According to regulations, companies offering internships must meet three main requirements:

Program

The internship program must be well-defined, including objectives, competencies, duration, participant requirements, and curriculum. It should align with Indonesian National Work Competency Standards (SKKNI), Specific Work Competency Standards (SKKK), or International Work Competency Standards (SKKI).

Facilities

The company must provide theoretical and practical training spaces, safety and health equipment, and a logbook for interns.

Mentors

Interns must be supervised by experienced, qualified employees who meet specific criteria, including being a permanent employee, having technical and training competencies, and understanding internship regulations.

Interns must be job seekers or potential employees seeking experience and skills. Basic requirements include being at least 17 years old, being physically and mentally healthy, and passing the internship selection process. Participants under 17 must provide parental or guardian consent.

Internships are limited to a maximum duration of one year. If additional time is required to attain specific competencies, a new agreement must be established and reported to the local Department of Manpower.

Work placements should align with company working hours and exclude overtime, official holidays, and night shifts. Companies may only accept up to 30% of their total workforce as interns and cannot reassign interns to the same program, position, or qualification.

For Interns

• Rights: Safety and health facilities, allowance covering transport, meals, and incentives, accident and death insurance, and certification upon meeting competency standards.

• Obligations: Comply with the internship agreement, complete the program, adhere to company regulations, and maintain the company's reputation.

For Employers

• Rights: Utilize the work produced by interns and enforce internship agreements and regulations.

• Obligations: Guide interns according to the program, fulfill interns' rights, provide protective equipment, offer accident and death insurance, provide allowance, evaluate interns, and issue certificates.

Internships offer significant advantages to companies, including:

Efficient Recruitment

Partnerships with educational institutions provide an early opportunity to identify and recruit top talent, potentially saving on recruitment costs.

Enhanced Company Reputation

Positive internship experiences contribute to a strong employer brand, attracting high-quality candidates.

Temporary Workforce Support

Interns can support business activities and boost productivity under experienced supervision.

However, companies must not misuse internships for cheap labor or exploit interns. Proper compensation and adherence to regulations are essential for a successful internship program.

What is the purpose of an internship?

To provide students with substantial experience and hands-on learning at the workplace (experiential learning). During an internship, students will gain hard skills (skills, complex problem solving, analytical skills, etc.) as well as soft skills (professional/work ethics, communication, teamwork, etc.).

Are internships paid?

Legally, interns are not entitled to a salary but to an allowance, the amount of which is agreed upon by the parties in the internship agreement.

How long is the internship period?

Internships are conducted with a written agreement between the intern and the employer. The duration of internships within the country is limited to a maximum of 1 year.

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