Employing people in Indonesia
The things that catch out companies hiring here for the first time, written up properly with the working shown. Every statutory figure is cited so you can check it against the source.
Indonesian salaries are negotiated net, so establish that first
When a candidate in Jakarta names a figure, they mean the amount that lands in their bank account. Agreeing that number while budgeting it as a gross package is the most expensive misunderstanding available to a first-time employer here.
Read the guideThirteen months is the baseline, so bonuses sit on top
The thirteenth payment is a statutory entitlement with a hard deadline attached. Treat it as the bonus and you have paid no bonus at all.
Read the guideWhy senior staff prefer private family medical cover
Every employee is enrolled in the national scheme from day one. Senior candidates want a private policy on top of it, and what they are buying is choice.
Read the guideWhy we do not offer recruitment
A recruiter earns a fee every time somebody moves, and we earn a fee only for as long as your employee stays. Holding both mandates means holding both incentives at once.
Read the guideEmployer of Record or your own PT PMA
Companies assume there is a headcount at which incorporating becomes correct. The trigger is almost always a change in what the business needs to do here.
Read the guideTerminating an employee in Indonesia
Severance is set by statute, scales with service, and is multiplied by a factor that depends on the ground you rely on.
Read the guideWhat to ask an Indonesian EOR before you sign
EOR, PEO and staffing partner get used interchangeably here. One question separates the arrangements that protect you from the ones that leave you exposed.
Read the guideHow we compare against Deel, Remote and other Indonesian EORs
They charge a flat fee per employee. We charge a percentage of employment cost. Those models cross over at a net salary of about 526,000,000, and above it a flat fee costs you less.
Read the guideFixed-term or permanent employment in Indonesia
A fixed-term contract is capped at five years in total, counting every extension. Past that it converts to permanent with seniority backdated to day one.
Read the guideOffice attendance and the Jakarta commute
Jakarta ranks 24th most congested city in the world and commutes run to 90 minutes each way. Why the working address belongs in the contract, and how the commute shows up in the salary.
Read the guideReference
Indonesian employment runs on acronyms, most of them Indonesian. Every one we use is defined with the regulation behind it.
