Everything required to employ someone lawfully
We carry the legal, tax and compliance work of employing your Indonesian IT staff. Contracts, payroll, social security, leave and the exit, all of it carried as our legal obligation.
Ways we support your business
Contracts, payroll and benefits
We draft the employment contract to the terms you set, in the form Indonesian law requires, and we distinguish fixed-term from indefinite engagement correctly because getting that wrong is expensive later.
Then we run it: monthly payroll, the thirteenth month THR (Tunjangan Hari Raya) religious holiday allowance, any bonus structure you define, and benefits including medical cover. One invoice to you, all obligations discharged locally.
Tax and social security compliance
We calculate and remit PPh 21 (Pajak Penghasilan Pasal 21), the withholding tax on employment income, and the mandatory BPJS social security contributions covering pension, old-age savings, work accident and death benefit, plus health cover.
Filings happen on our deadline, under our registration. Penalties for a late or incorrect return sit with us, which is the substantive difference between an Employer of Record and a payroll bureau.
Leave and absence
Annual, sick and statutory leave tracked against the entitlements Indonesian law actually grants, which are not the same as the ones your handbook assumes.
Requests and approvals run through us and your managers see an accurate balance, so nobody discovers an accrued liability at the point somebody resigns.
Exit and final settlement
We employ on fixed-term contracts, so an exit produces the statutory end-of-term compensation under PP 35/2021. One month of wages for each twelve months of service, due at the expiry of every term including before an extension, and pro-rated where a contract ends early.
We run the whole process, from the notice through to the final settlement, and we absorb the administrative risk. Exits are where employment claims start, so this is the part worth having done by people who do it regularly. Our guide on fixed-term contracts sets out how the payments work.
We do not recruit
We do not advertise roles, screen candidates or run searches, and that is a deliberate choice we would make again. A recruiter collects a fee each time somebody changes job, so the firm that placed your engineer has a permanent financial reason to place them again elsewhere.
Our fee recurs only while your employee stays, which puts our economics on the same side as your retention. We will happily introduce you to recruiters we rate, and we take no referral fee for doing it.
One thing we do handle is in-person verification. Once you have chosen someone, we meet them, check their identity and credentials against the originals, and witness the contract signing. That is compliance work, not sourcing, and a video call does not substitute for it.
