Indonesia's Manpower Ministry Cracks Down on Intern Allowance Deductions

Strict Prohibition on Allowance Deductions

The Indonesian Ministry of Manpower has issued a clear directive prohibiting companies from making any deductions from internship allowances provided to participants in national internship programs. The ministry emphasized that these allowances are the rightful property of the interns and must be given in full without any reductions.

Prohibited Deduction Categories

The ministry specifically highlighted several common practices that are now considered illegal: administrative costs, mentoring fees, uniform and equipment expenses, and internal company operational costs. Companies are required to bear these expenses themselves rather than passing them on to interns.

Enforcement and Compliance

The directive was communicated through the ministry's official Instagram account, @kemnaker, emphasizing the importance of compliance. The clear message was: "Rekanaker, Minaker tegaskan lagi: perusahaan dilarang memotong, meminta, atau menarik sebagian uang saku peserta pemagangan. Berapun besarannya, apa pun alasannya. Tetap tidak boleh." ("We reiterate: companies are prohibited from deducting, requesting, or withdrawing any portion of interns' allowances. Regardless of the amount or reason, it remains prohibited.")

Implications for Businesses

This regulation requires companies to re-evaluate their internship programs and ensure compliance with the new guidelines. Businesses must now absorb costs previously potentially passed to interns, which could impact their operational budgeting for internship programs. The move is expected to enhance the welfare of interns and standardize internship practices across industries.