Employing in Indonesia
Growing your workforce in Indonesia doesn’t need to be complex. Speak with our team to see how TopSource EOR makes it easy to hire in new countries, without setting up entities or getting lost in local regulations.
More than an Employer of Record.
Employer of Record services are only one way that we help you accelerate your global growth goals. From talent advisory to entity management, we give you the tools you need to research, enter and expand into your key markets.
Market Selection Advisory
Compare available talent, compensation, additional costs and regulations across different countries
Read more
Salary Benchmarking
Identify and prioritize markets for growth based on talent, cost & regulations
Read more
Global Skills Analysis
Map skill availability by region to align talent strategies with business goals..
Read more
Talent Acquisition
Find, hire & onboard the highly skilled team members you need in each locality.
Read more
Talent Strategy Optimization
Optimize your talent strategy to enable your organization to achieve it’s global ambitions.
Read more
Frequently asked questions
Yes. We manage BPJS Ketenagakerjaan (employment social security covering pension, old-age savings, work accident, and death benefits) and BPJS Kesehatan (health insurance) contributions, along with income tax withholding. We also calculate and pay THR (Tunjangan Hari Raya), the mandatory religious holiday allowance equal to one month’s salary, due before the relevant major religious holiday for each employee.
Beyond the mandatory THR and BPJS contributions, competitive employers in Indonesia typically add private health insurance that supplements BPJS Kesehatan, transport allowances, and, given Indonesia’s regional minimum wage system, salaries benchmarked specifically to the province of employment rather than a national average, since minimum wages vary significantly by region.
Following the Omnibus Law (Job Creation Law) reforms, severance calculations combine uang pesangon (severance pay) and uang penghargaan masa kerja (service appreciation pay), both scaled by tenure, and termination generally requires bipartite negotiation before it can proceed, with disputes escalating to the Industrial Relations Court if unresolved. This structured, multi-step process is one of the more distinctive features of Indonesian employment law.
An EOR can typically onboard within one to two weeks for BPJS registration and contract issuance, compared with the couple of months often needed to establish a PT PMA (foreign-owned limited liability company) and complete the associated business licensing before you can legally employ staff in Indonesia.
Indonesia’s regional minimum wage variation, mandatory THR, and multi-step termination process require ongoing local administration that’s hard to manage remotely. An EOR takes on that compliance and liability, letting you hire across Indonesia’s provinces without setting up a PT PMA, which is typically the more efficient path for an initial Indonesian hire or small team.
Hire Anywhere with Our EOR Services
We help you legally employ and pay talent across 180+ countries—so you can scale faster.