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Employer of Record (EOR) in Indonesia

Hire from Asia's largest talent pool without an Indonesian entity. BPJS, THR, tax filings, and labor law compliance fully managed.

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Why use an EOR in Indonesia

01

No Local Entity

Skip months of legal setup and tens of thousands in registration fees. We are the legal employer in Indonesia.

02

Full Compliance

Local labor law, social insurance, tax filings, and statutory benefits — all handled for you in Indonesia.

03

Onboard in 24 Hours

Pre-vetted candidates ready to start in 5–10 business days. No waiting months for an entity to spin up.

04

Up to 75% Savings

Hire senior engineers at 60–75% lower cost than equivalent US salaries. No upfront fees, transparent monthly pricing.

We help companies save $103,000+ per hire

24 Hours

to get matched

4.9

avg client rating

200+

companies building with us

98%

talent retention rate

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Start onboarding talent in Indonesia in just 24 hours

1

Share your talent needs

Tell us the role, stack, budget, and timeline. We will source pre-vetted candidates from our Indonesia talent pool.

2

We become the legal employer

We handle compliant employment contracts and local labor laws through our owned entity in Indonesia.

3

You manage the work, we handle the rest

You lead projects and assign tasks. Your Indonesia team works your hours and integrates with your tools.

4

We take care of payroll, taxes, and compliance

From salary disbursement and taxes to benefits and social insurance, we handle everything according to Indonesia regulations.

Indonesia at a glance

Population

278M

Currency

IDR (Indonesian Rupiah)

Tech talent

90,000+ IT graduates per year

Top employers

Gojek, Tokopedia, Traveloka, Bukalapak, Xendit

Employment Laws & Hiring Guide for Indonesia

Working Hours

40 hours/week. Either 7 hrs/day (6 days) or 8 hrs/day (5 days).

Overtime Pay

150% first hour, 200% subsequent hours. Max 4 hrs/day, 18 hrs/week.

Probation Period

Only for permanent (PKWTT) contracts. Max 3 months. Not allowed for fixed-term.

Leave Entitlements in Indonesia

Leave Type
Entitlement
Annual Leave
12 days after 12 months of continuous service.
Sick Leave
Paid sick leave: 100% (months 1–4), 75% (5–8), 50% (9–12), 25% after 12 months.
Maternity Leave
3 months paid (1.5 months before, 1.5 months after delivery). Miscarriage: 1.5 months.
Paternity Leave
2 days paid.
Public Holidays
15–17 days (varies yearly). Includes Eid al-Fitr, Christmas, Nyepi, Waisak.

Notice Period

30 days (general practice). Specific terms per employment agreement.

Severance Pay

Complex formula: up to 9 months (severance) + 10 months (service pay). Depends on cause.

Payroll & Tax in Indonesia

Component
Details
Employer Contributions
~11% (BPJS Health 4%, BPJS Employment ~7.24%).
Employee Contributions
~3% (BPJS Health 1%, BPJS Employment ~2%).
Income Tax
Progressive 5%–35%. Annual non-taxable income: IDR 54M (~$3,400) for single.
Minimum Wage
Jakarta (UMP): IDR 5,067,381/mo (~$318). Varies by province.
13th Month / Bonus
Mandatory (THR). Must be paid 7 days before Eid al-Fitr. 1 month salary after 12 months.

Second Talent handles all of this for you

Payroll, taxes, social contributions, leave tracking, contracts, and termination compliance in Indonesia. You focus on building your product. We handle the rest.

Hire Talent

Inside the EOR platform

One workspace for EOR in Indonesia

Contracts, statutory benefits, payslips, leave, and monthly USD invoicing for your Indonesia team. Every step lives in a single workspace your team and ours share.

  • Indonesia-specific employment contracts auto-generated and e-signed
  • Statutory benefits, social insurance, and tax filings handled monthly
  • Leave tracking, payslips, and HR documents in one place
  • One USD invoice per month — no FX juggling, no local admin
See it live in 24 hours
app.secondtalent.com / shortlist

Senior Full-Stack · Remote · 8+ yrs

Shortlist · 6 engineers

Live
MR

Maria R. 🇵🇭

Sr. Full-Stack · React + Node

Top match
TN

Thanh N. 🇻🇳

Sr. Backend · Go + Postgres

Interview
AS

Adi S. 🇮🇩

Sr. AI · LLM + RAG

New

Avg AI fit

91/100

Time to shortlist

22 hrs

Replacement

Free

EOR in Indonesia FAQs

What does an Employer of Record (EOR) do in Indonesia?
An EOR acts as the legal employer of your team in Indonesia, managing payroll, taxes, contracts, and labor compliance so you can hire without setting up a local entity.
How fast can I onboard employees in Indonesia?
Most hires can be onboarded within 5–10 business days, depending on documentation. We handle local contracts and regulatory alignment from day one.
Do I maintain control over the work?
Absolutely. You direct work responsibilities, reporting lines, performance management, and team culture. We handle the legal and administrative backend.
How much does EOR in Indonesia cost?
Our EOR fee is a transparent monthly amount on top of the engineer's salary. There are no upfront fees, no setup fees, and no hidden costs.
Can I offer localized benefits to my Indonesia employees?
Yes. We administer local statutory benefits (health, leave, social insurance) plus any optional benefits you want to offer (private health, equipment stipends, learning budgets).

What our clients say

Hire compliantly in Indonesia in 24 hours.

$0 upfront costs, pay only when you make a hire

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