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Process
How it works
Three steps to employing your first Indonesian team member. No entity needed.
1
Select your candidate
You find the talent. We generate a locally compliant PKWT or PKWTT employment contract.
2
We handle the setup
BPJS registration, tax ID, bank setup, and labor compliance. Ready in 2-5 working days.
3
You manage, we operate
Run your team day to day. We process payroll, tax filings, THR, and BPJS monthly.
EOR Cost Calculator
Calculate your EOR cost in Indonesia
Get a transparent estimate of total employer cost including salary, BPJS contributions, and EOR service fees.
USD at 1 = 16,800 IDR. Based on 2026 BPJS rates. Actual costs may vary.
Pricing
Indonesia's most affordable EOR
Most EOR providers charge $300-$700 per employee for Indonesia. We start at $49.99 — same compliance, no intermediaries, 15 years of local infrastructure.
Most Popular
EOR Service
From $49.99/mo
Starting from $49.99 + 10% of gross payroll. Full employment, compliance, and payroll management.
From employment contracts to payroll compliance, our Employer of Record service covers everything you need to hire in Indonesia.
Employment Contracts
PKWT and PKWTT contracts drafted and maintained per Indonesian labor law.
Payroll & Tax
Monthly salary processing, PPh 21 withholding, and annual tax reconciliation.
BPJS Registration
Full enrollment in BPJS Kesehatan (health) and BPJS Ketenagakerjaan (employment).
Legal Compliance
Continuous monitoring of labor regulation changes. We keep your employment compliant.
Leave & THR
Annual leave tracking, sick leave, and THR (holiday allowance) calculation and disbursement.
Severance
Compliant termination process with legally mandated severance and notice period calculation.
Work Permits
Add-on
RPTKA and IMTA processing for foreign employees. KITAS/KITAP visa sponsorship.
Onboarding
End-to-end employee onboarding and offboarding with document management.
Comparison
EOR vs setting up a PT PMA
See why EOR is faster, cheaper, and lower risk for most businesses entering Indonesia.
Criteria
EOR Service
PT PMA
Setup time
2-5 working days
2-4 months
Setup cost
$0
$5,000-$15,000+
Minimum capital
None
IDR 10B required
Compliance risk
Handled by us
Your responsibility
Payroll & tax
Included
Separate vendor
BPJS
Included
Self-managed
Scale up/down
Instantly
Complex
Exit strategy
Simple offboarding
Liquidation process
Indonesia at a Glance
Employment snapshot
Key employment facts for hiring in Indonesia.
Min. Wage (Jakarta)
IDR 5.40M
~$321/month (2025)
BPJS Health
5% of salary
4% employer, 1% employee
Annual Leave
12 days
After 12 months of service
Probation
3 months
PKWTT contracts only
THR Bonus
1 month salary
Paid before Hari Raya
Notice Period
30 days
Standard for both parties
Maternity Leave
3 months
Fully paid by employer
Income Tax
5%-35%
Progressive PPh 21 brackets
Reviews
Trusted by companies worldwide
See what our clients say about hiring in Indonesia through our EOR service.
We needed to hire three developers in Jakarta quickly. The team had them onboarded within 10 days, fully compliant with all local regulations. The cost transparency was exactly what we needed.
RH
Richard Holloway
Head of APAC Operations, Grafton Recruitment · United States
After evaluating six EOR providers, we chose this service for Indonesia. The BPJS management alone saved us countless hours. Our employees are well taken care of.
Setting up a PT PMA was going to cost us $20K and take four months. Instead, we had our first Indonesian employee onboarded in under two weeks at a fraction of the cost.
PdV
Pieter de Vries
Co-Founder, Nedap Mobility · Netherlands
The payroll accuracy and compliance reporting give us complete peace of mind. THR calculations, BPJS filings, PPh21 withholding — all handled flawlessly every month.
CW
Catherine Whitmore
People & Culture Lead, Canva · Australia
We expanded our research team into Indonesia with five hires. The onboarding was smooth, the employment contracts thorough, and the ongoing support responsive.
JH
Jonathan Hartley
Managing Director, Savills Investment Management · United Kingdom
Transparent pricing was the deciding factor. No hidden fees, no surprise charges. We know exactly what we pay every month, and the service quality has been consistently excellent.
SK
Stefan Krueger
VP Engineering, Siemens Energy · Germany
FAQ
Frequently asked questions
Everything you need to know about EOR services in Indonesia.
An Employer of Record (EOR) is a third-party organization that becomes the legal employer of your workers in Indonesia. Rather than setting up your own PT PMA — which requires IDR 10 billion in paid-up capital, takes 2-4 months, and costs $5,000-$15,000 in legal fees — an EOR lets you hire through an established Indonesian legal entity immediately. We handle the full employment lifecycle: drafting PKWT or PKWTT contracts, registering employees with BPJS Kesehatan (health insurance) and BPJS Ketenagakerjaan (employment security), withholding PPh 21 income tax, processing monthly payroll, managing THR religious holiday bonuses, and ensuring ongoing compliance with the Omnibus Law on Job Creation and Indonesia's Manpower Law (UU No. 13/2003). You retain complete day-to-day management of your team while we carry the legal and administrative responsibility.
Our pricing is structured at 10% of total payroll (base salary plus mandatory employer BPJS contributions), with a minimum fee of $49.99 per employee per month. To put that in perspective: if you're hiring a developer at IDR 15 million/month (~$893 USD), your EOR fee would be approximately $107/month — covering employment contracts, payroll processing, PPh 21 withholding, BPJS registration and monthly filings, THR calculation, leave tracking, and full compliance management. There are no setup fees, no onboarding charges, and no hidden costs. For comparison, most global EOR providers charge $300-$700 per employee per month for Indonesia coverage. Our pricing is possible because we operate locally with 15+ years of established infrastructure, rather than subcontracting through intermediaries.
Most international EOR providers operate through a chain of intermediaries — a global platform contracts a regional partner, who then subcontracts to a local entity in Indonesia. Each layer adds margin. We operate our own legal entity in Indonesia, built over 15 years of direct operations since 2011. That means no middlemen, no markup chains, and no unnecessary overhead passed on to you. Our infrastructure for BPJS filings, tax reporting, and payroll processing has been refined across hundreds of employment cycles, which keeps our operational costs low. The result is a service that starts from $49.99/employee/month while delivering the same (or better) compliance coverage that competitors charge $300-$700 for.
The typical onboarding timeline is 2-5 working days from the point you confirm the hire. On day one, we draft the employment contract (PKWT for fixed-term or PKWTT for permanent) and collect the employee's KTP, NPWP tax ID, and bank details. Within 48 hours, we complete BPJS Kesehatan and BPJS Ketenagakerjaan registration, set up payroll processing, and configure tax withholding. By day 3-5, the employee is fully registered, insured, and ready to work. For urgent hires, we've completed onboarding in as fast as 2 working days. Compare that to establishing a PT PMA, which takes 2-4 months before you can legally employ anyone.
Not when using an EOR. Setting up a PT PMA (Penanaman Modal Asing, or foreign-owned limited liability company) in Indonesia requires minimum paid-up capital of IDR 10 billion (~$595,000), a local registered address, a nominated director, BKPM investment registration, tax registration, BPJS employer registration, and compliance with negative investment list restrictions. The process typically takes 2-4 months and costs $5,000-$15,000+ in legal and administrative fees. With an EOR, you skip all of that — our existing Indonesian PT serves as the legal employer, and you can have your first hire onboarded within days. Many companies start with an EOR to test the Indonesian market and transition to their own entity later once they have 20+ employees and established operations.
EOR services operate fully within the framework of Indonesian labor law. Our entity is a legally registered Indonesian PT (Perseroan Terbatas) that employs workers in compliance with the Manpower Law (UU No. 13/2003), the Omnibus Law on Job Creation (UU No. 6/2023), and all related government regulations. The employment relationship is between our PT and the employee — we issue compliant employment contracts, register with BPJS, withhold and remit PPh 21 taxes, and fulfill all statutory obligations including severance, THR, and leave entitlements. Your company maintains an operational or service agreement with us that defines the day-to-day management relationship. This structure has been used by hundreds of foreign companies operating in Indonesia for decades.
Indonesian labor law mandates several employee benefits that the employer (or EOR) must provide. BPJS Kesehatan (health insurance) requires 5% of salary (4% employer, 1% employee), capped at IDR 12 million base salary. BPJS Ketenagakerjaan covers four programs: JHT old-age savings (5.7% total — 3.7% employer, 2% employee), JKK work accident insurance (0.24%-1.74% employer), JKM death benefit (0.3% employer), and JP pension (3% total — 2% employer, 1% employee, capped at IDR 11,086,300 as of March 2026). Beyond social security, employers must provide at least 12 days of annual leave after 12 months of service, THR (Tunjangan Hari Raya) equal to one month's salary paid before the religious holiday, 3 months of maternity leave at full pay, 2 days of paternity leave, overtime pay at 1.5x for the first hour and 2x thereafter, and sick leave provisions. We manage every one of these requirements on your behalf.
Under our Enterprise plan, we handle the complete work permit process for foreign employees. This includes preparing and submitting the RPTKA (Rencana Penggunaan Tenaga Kerja Asing — foreign worker utilization plan) to the Ministry of Manpower, obtaining IMTA approval, applying for the VITAS entry visa, and processing the KITAS (Kartu Izin Tinggal Terbatas) temporary stay permit. We also manage the Dana Kompensasi (DKP) payment of USD $100 per month per foreign worker, as required by regulation. The typical timeline for a new work permit is 4-8 weeks depending on the position and nationality. We handle renewals, reporting obligations, and ensure compliance with the requirement that foreign workers in certain positions must have Indonesian understudies.
Indonesia recognizes two primary employment contract types. PKWT (Perjanjian Kerja Waktu Tertentu) is a fixed-term contract used for temporary, seasonal, or project-based work. Under the Omnibus Law, a PKWT can run for a maximum of 5 years (including renewals), must be registered with the Manpower office, and cannot include a probation period. When a PKWT ends, the employer must pay compensation (uang kompensasi) calculated based on the contract duration. PKWTT (Perjanjian Kerja Waktu Tidak Tertentu) is a permanent employment contract with no fixed end date. PKWTT contracts may include a probation period of up to 3 months, during which either party can terminate with standard notice. Termination of a PKWTT employee triggers severance pay obligations ranging from 1 to 9 months' salary depending on years of service, plus long-service pay and rights compensation. We advise on which contract type fits your hiring needs and draft fully compliant agreements.
We fully support entity transitions and have helped multiple clients move from EOR to their own PT PMA. The process typically involves: establishing your PT PMA (which we can refer partners for), transferring employees from our entity to yours with a new employment contract that preserves their tenure and accrued benefits, updating BPJS and tax registrations to your new entity, and ensuring there is no gap in employment continuity or compliance. We provide transition support documentation and can run both structures in parallel during the changeover period. There are no penalties, no lock-in periods, and no exit fees. Many clients find that EOR remains the more cost-effective option until they reach 20+ employees, at which point the economics of running their own entity start to make sense.
We run payroll on a monthly cycle, with salary disbursements between the 25th and 28th of each month directly to employees' Indonesian bank accounts. Each cycle, we calculate gross salary, apply PPh 21 income tax withholding using the TER (Tarif Efektif Rata-rata) rates established by PMK 168/2023, deduct employee BPJS contributions, and determine the net pay. Employer BPJS contributions are calculated and remitted separately. At year-end, we perform the annual PPh 21 tax reconciliation using progressive brackets (5% to 35%) and issue the 1721-A1 tax form for each employee. You receive detailed payroll reports each cycle showing the full breakdown — gross salary, each deduction, employer contributions, and total cost. For months with THR disbursement (typically before Hari Raya Idul Fitri), we calculate the pro-rated or full THR amount and process it alongside the regular payroll run.
Get in Touch
Ready to hire in Indonesia?
Tell us about your hiring needs and we'll prepare a tailored proposal.
Free consultation
No-obligation consultation with our Indonesia employment experts.
24-hour response
We respond to every inquiry within one business day.
Transparent pricing
Clear pricing with no hidden fees or surprise charges.