Ambiguity In the Legal Status of Director Under Indonesia’s Legislative Framework

The legal status of Directors in Indonesia remains a complex issue, shaped by differing interpretations under Indonesia’s Company Law and Manpower Law. While the Company Law treats Directors as corporate organs appointed through the General Meeting of Shareholders, the Manpower Law applies a substantive test that may, in certain cases, classify Directors as workers entitled to statutory protection.

This divergence creates legal uncertainty, particularly in cases involving Social Security (BPJS) registration or the appointment of former workers as Directors. Companies are therefore encouraged to establish clear and well-structured directorship arrangements to ensure legal certainty and minimize the risk of future disputes.

Read our latest article for a detailed overview of Indonesia’s dual legal approaches and their broader implications for company and manpower practices. Explore the full article for deeper insights into the statutory indicators and judicial perspectives shaping this ongoing debate at this link