Foreign Esports Athletes May Join Indonesian Esports Clubs, Here are the Provisions

PERTANYAAN

Outstanding esports athletes will certainly attract the attention of esports clubs to be recruited to strengthen their teams. However, it is not rare to find that the outstanding esports athlete is not an individual with Indonesian citizenship. In this case, what are the provisions/regulations for hiring foreign esports athletes to join an Indonesian esports club?

INTISARI JAWABAN

Several legal provisions must be considered in employing foreign esports athletes in Indonesian esports clubs, such as the provisions of manpower law, provisions of immigration law, and provisions of Sports Law and Regulation of Esports Federation of Indonesia a.k.a. PB ESI.

How is each of them explained?

Please take a look at the review below for a further explanation.

ULASAN LENGKAP

Thank you for your question.

This article is an English translation of Atlet Esports Asing Bergabung dengan Klub Esports Indonesia, Begini Ketentuannya, written by Yudistira Adipratama, S.H., LL.M. from K-Case Lawyer, published on the 18^th of June 2024.

All legal information available on Klinik hukumonline.com has been prepared for educational purposes only and is general in nature (read the complete Disclaimer). In order to obtain legal advice specific to your case, please consult with Justika Partner Consultant.

When it comes to finding talent to build a strong esports team, sometimes esports clubs in Indonesia can find outstanding esports athletes from outside Indonesia. One way to do this is by studying the athlete's match results and playing style. Thus, to recruit these outstanding athletes, Indonesian esports clubs need to pay attention to the legal provisions that apply in Indonesia. The provisions that need to be considered to hire these foreign athletes are as follows:

1. provisions of manpower law;
2. provisions of immigration law; and
3. provisions of the Sports Law and Regulation of Esports Federation of Indonesia (in Bahasa Indonesia, it is known as Peraturan Pengurus Besar Esports Indonesia/PB ESI).

The following is an explanation of each.

Provisions of Manpower Law

As a foreign national (Warga Negara Asing/WNA) holding a visa with the intention of working in Indonesia, foreign esports athletes can be categorized as foreign workers (Tenaga Kerja Asing/TKA).[1] As such, as an employer who will employ TKA, esports clubs are required to have a foreign workers recruitment plan (Rencana Penggunaan TKA/RPTKA) that is validated by the Central Government.[2] In this case, foreign workers can be employed in Indonesia only in an employment relationship for a specified period as well as having competence in accordance with positions that will be occupied.[3]

Esports athletes are not included in the positions that can be occupied by foreign workers based on the Appendix of the Decree of the Minister of Manpower 228/2019. However, the Minister of Manpower can still grant permission to employ foreign workers for positions not regulated in the Appendix.[4]

As for obtaining RPTKA authorization, esports clubs must apply for RPTKA authorization to the Minister of Manpower or related officials online which contains at least:[5]

1. identity of the TKA Employer;
2. reasons for the recruitment of TKA;
3. position or ranking of TKA in the company’s organizational structure;
4. number of TKA;
5. period of TKA recruitment;
6. work location of TKA;
7. identity of TKA Understudy Workers; and
8. plan to absorb the Indonesian workforce every year

In applying for RPTKA authorization, esports clubs also need to attach supporting documents in the form of:[6]

1. application letter;
2. business identification number and/or business license of the TKA Employer;
3. deed and decree of establishment and/or amendment from the authorized institution;
4. proof of compulsory company manpower report (wajib lapor ketenagakerjaan) in the company;
5. draft employment agreement or other agreements;
6. chart of the company’s organizational structure;
7. statement letter for the appointment of TKA Understudy Workers;
8. statement letter to implement education and job training for Indonesian workers in accordance with the qualifications of the position occupied by TKA; and
9. statement letter to facilitate Indonesian language education and training to TKA.

Provisions of Immigration Law

Once an esports club has an RPTKA, the RPTKA can then be used as a recommendation for obtaining a visa and stay permit for foreign esports athletes.[7] Foreign esports athletes entering Indonesia must possess a valid (legitimate) visa, except for those who are exempted from visa requirements.[8] In this case, the form of visa granted to foreign athletes entering Indonesia for the purpose of working is a Limited Stay Visa (Visa Tinggal Terbatas/VITAS).[9] Once they have entered Indonesia, to stay and reside in Indonesia, the foreign athlete also needs a residence permit based on their visa.[10] In this context, the foreign athlete needs a Limited Stay Permit (Izin Tinggal Terbatas/ITAS).[11] Here, entry stamps for foreign nationals who hold Limited Stay Visas shall prevail as Limited Stay Permits.[12]

Limited Stay Permits for workers, including for foreign athletes, can be granted for a maximum period of 180 days, 1 year, or 2 years based on the period stated on their Limited Stay Visas.[13] The application process can be done by the athlete himself or by the esports club that will supervise him, and by attaching the following requirements:[14]

1. Nationality Passport that is valid and still prevails for at least 6 months;
2. proof of guarantee from Guarantor or Immigration Guarantee;
3. proof of having living expenses for him/herself and/or his/her family while in the Indonesian territory;
4. coloured passport photo; and
5. other documents to explain the aim/objective of Foreign Nationals’ arrival.

Provisions of Sports Law and Regulation of Esports Federation of Indonesia

As a performance sport[15] recognized by sports law, esports has its own sports branch, namely the Esports Federation of Indonesia (Peraturan Pengurus Besar Esports Indonesia/PB ESI). PB ESI has the task of managing, coaching, and developing esports, and has the authority to formulate and determine the management model, organization of coaching, and development of esports.[16]

Although foreign athletes or sportsmen are not specifically regulated in the Sports Law, in this case, PB ESI through the Regulation of Esports Federation of Indonesia regulates that several requirements must be met by foreign professional athletes competing in Indonesia, namely:[17]

1. Esports Team Recommendation Letter: Foreign professional athletes must possess a Letter of Recommendation from their esports club.
2. Indonesian Esports Card: Foreign professional athletes also need to possess an Indonesian Esports Card issued by PB ESI.
3. Visa and Work Permit: Foreign professional athletes are required to fulfill the licensing conditions required by the Government of the Unitary State of the Republic of Indonesia to carry out professional activities in the territory of Indonesia.

In addition to these requirements for foreign esports athletes, esports clubs also need to ensure the fulfillment of the rights that can be received by professional athletes as mandated in the Regulation of Esports Federation of Indonesia as follows:[18]

1. Wages: Employment contracts should clearly state the monthly wage for both active and reserve athletes.
2. Increased Wages Based on Performance: For professional athletes with an employment contract term exceeding 1 year, there should be a clause that allows for discussion of an increase in wages based on the athlete's performance every 4 to 6 months.
3. Insurance: Esports clubs must provide insurance to their professional athletes as a minimum of the following:

• Insurance program on National Social Security Agency for Employment (Badan Penyelenggaraan Jaminan Sosial Ketenagakerjaan/BPJS)
• Health insurance; and
• Travel insurance for both domestic and international travel.

4. Image Rights: The employment contract must state the amount of the athlete's share of profits for the broadcast or publication of the athlete's image rights.
5. Buyout and Transfer Clause: There needs to be a clause in the employment contract that regulates the athlete's consent in the event of a buyout and transfer, including consent to termination of employment.

These are the answers we can provide, we hope you will find them useful.

Legal Basis:

Law Number 13 of 2003 on Manpower

Law Number 6 of 2011 on Immigration

Law Number 11 of 2022 on Sports

Regulation of the Government in Lieu of Law Number 2 of 2022 on Job Creation

Law Number 6 of 2023

Government Regulation Number 31 of 2013 on the Implementing Regulations of Law Number 6 of 2011 on Immigration

Government Regulation Number 26 of 2016 on the Amendment to Government Regulation Number 31 of 2013 on the Implementing Regulations of Law Number 6 of 2011 on Immigration

Government Regulation Number 51 of 2020 on the Second Amendment to Government Regulation Number 31 of 2013 on the Implementing Regulations of Law Number 6 of 2011 on Immigration

Government Regulation Number 48 of 2021 on the Third Amendment to Government Regulation Number 31 of 2013 on the Implementing Regulations of Law Number 6 of 2011 on Immigration

Government Regulation Number 40 of 2023 on the Fourth Amendment to Government Regulation Number 31 of 2013 on the Implementing Regulations of Law Number 6 of 2011 on Immigration

Government Regulation Number 34 of 2021 on the Recruitment of Foreign Workers

Regulation of the Minister of Law and Human Rights Number 22 of 2023 on Visas and Stay Permits

Regulation of the Minister of Law and Human Rights Number 11 of 2024 on the Amendment to Regulation of the Minister of Law and Human Rights Number 22 of 2023 on Visas and Stay Permits

Decree of the Minister of Manpower Number 228 of 2019 on Certain Positions Which May be Occupied by Foreign Workers

Regulation of Esports Federation of Indonesia Number 034/PB-ESI/B/VI/2021 on the Implementation of Esports Activities in Indonesia

Reference:

Esports Federation of Indonesia, which was accessed on Friday, 14^th of June 2024, at 16:22 Western Indonesian Time.

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[1] Article 1 number 13 Law Number 13 of 2003 on Manpower (“Law 13/2003”)

[2] Article 81 number 4 Regulation of the Government in Lieu of Law Number 2 of 2022 on Job Creation (“Perppu 2/2022”) which amended Article 42 section (1) Law 13/2003

[3] Article 81 number 4 Perppu 2/2022 which amended Article 42 section (4) Law 13/2003

[4] The Third Decision of the Appendix of Decree of the Minister of Manpower Number 228 of 2019 on Certain Positions Which May be Occupied by Foreign Workers (“Decree of the Minister of Manpower 228/2019”)

[5] Article 12 section (1) and (2) Government Regulation Number 34 of 2021 on the Recruitment of Foreign Workers (“Government Regulation 34/2021”)

[6] Article 12 section (3) Government Regulation 34/2021

[7] Article 14 section (6) Government Regulation 34/2021

[8] Article 3 letter a Government Regulation Number 31 of 2013 on the Implementing Regulations of Law Number 6 of 2011 on Immigration (“Government Regulation 31/2013”)

[9] Article 106 number 3 Perppu 2/2022 which amended Article 39 section (1) Law Number 6 of 2011 on Immigration jo. Article 102 section (1) and (2) Government Regulation Number 40 of 2023 on the Fourth Amendment to Government Regulation Number 31 of 2013 on the Implementing Regulations of Law Number 6 of 2011 on Immigration (“Government Regulation 40/2023”)

[10] Article 112 section (1) and (2) Government Regulation 31/2013

[11] Article 141 section (1) Government Regulation 40/2023

[12] Article 32 Government Regulation 40/2023

[13] Article 104 section (1) Regulation of the Minister of Law and Human Rights Number 22 of 2023 on Visas and Stay Permits (“Regulation of the Minister of Law and Human Rights 22/2023”) and Article 105 section (1) Regulation of the Minister of Law and Human Rights Number 11 of 2024 on the Amendment to Regulation of the Minister of Law and Human Rights Number 22 of 2023 on Visas and Stay Permits (“Regulation of the Minister of Law and Human Rights 11/2024”)

[14] Article 103 section (2) Government Regulation 40/2023

[15] Article 21 section (1) and (2) Law Number 11 of 2022 on Sports (“Sports Law”)

[16] Article 36 section (4) and (5) Sports Law

[17] Article 4 section (4) Regulation of Esports Federation of Indonesia Number 034/PB-ESI/B/VI/2021 on the Implementation of Esports Activities in Indonesia (“Regulation of Esports Federation of Indonesia”)

[18] Article 5 section (1) Regulation of Esports Federation of Indonesia