Employer of Record (EOR) Indonesia

Hassle-Free Local Hiring in Indonesia

Looking to hire in Indonesia without setting up a legal entity? AYP offers trusted Employer of Record Indonesia services that help companies expand quickly while staying compliant with local employment laws. With our EOR Indonesia solution, you can onboard, manage, and pay employees across Indonesia while AYP takes care of HR, payroll, statutory contributions, and legal compliance.

Contact Us
Most Popular
EOR in Indonesia from USD 288
Book a demo

Key Takeaways

Why Choose AYP as Your Employer of Record Indonesia Partner?


Indonesia is Southeast Asia’s largest economy, with a growing middle class, abundant talent pool, and strategic location. However, navigating its complex employment laws, tax systems, and immigration procedures can be challenging for foreign businesses.


With AYP as your Employer of Record Indonesia provider, you benefit from:

  • Hiring without establishing a local legal entity
  • Compliance with Indonesia’s Labour Law No. 13 of 2003 and related regulations
  • Local support from our in-country HR and legal experts
  • A seamless platform for payroll, benefits, and employee management

Our EOR Indonesia solution simplifies your market entry, enabling you to focus on your operations while we handle the compliance.

What’s Included in Our EOR Indonesia Solution?


AYP’s Employer of Record Indonesia service is a comprehensive offering that includes all legal, HR, and payroll administration required for employment in Indonesia.


Core EOR Indonesia Services:

  • Drafting bilingual employment contracts (Bahasa Indonesia and English)
  • Monthly payroll processing and statutory tax filings
  • BPJS Kesehatan and BPJS Ketenagakerjaan registration and contributions
  • Income tax withholding (PPh 21)
  • Leave tracking and benefits administration
  • End-to-end onboarding and offboarding procedures

With our EOR Indonesia solution, you remain in control of your team while AYP ensures compliance behind the scenes.

Statutory Contributions and Payroll Compliance in Indonesia

Indonesia has a range of mandatory social contributions and tax requirements for employers. AYP ensures all calculations and filings are performed correctly under the Employer of Record Indonesia model.

Key Contributions Covered by EOR Indonesia:

  • BPJS Kesehatan: National health insurance
  • BPJS Ketenagakerjaan: Covers workplace accidents, old age benefits, pensions, and death insurance
  • PPh 21 (Income Tax): Monthly employee income tax withholding

We ensure all obligations are submitted accurately and on time, protecting your business from penalties.

Leave and Working Hours under EOR Indonesia


Indonesia’s labour law defines minimum standards for working hours and employee leave entitlements. Our EOR Indonesia team helps enforce these standards and ensures your policies are compliant.


EOR Indonesia Leave Coverage:

  • Working Hours: Maximum 40 hours per week (7 hours/day for 6-day workweek, or 8 hours/day for 5-day workweek)
  • Annual Leave: Minimum 12 working days after 1 year of service
  • Sick Leave: Paid sick leave upon submission of a medical certificate
  • Maternity Leave: 3 months before and after childbirth
  • Paternity Leave: 2 days
  • Public Holidays: As declared annually by the Indonesian government

All leave balances and entitlements are tracked and managed via AYP’s centralized platform.

Expand in Asia with AYP's local HR expertise

Onboard in minutes, stay compliant
— let AYP handle the rest

Speak to Expert

Visa Sponsorship and Foreign Worker Permits in Indonesia


To hire foreign nationals, companies must obtain the appropriate work permits and visas. AYP supports all steps in this process under our EOR Indonesia framework.


EOR Indonesia Immigration Support:

  • RPTKA (Expatriate Placement Plan) submission and approval
  • IMTA (Work Permit) application
  • Limited Stay Visa (VITAS) and KITAS processing
  • Ongoing compliance monitoring and renewals

We simplify the complex regulatory process, helping you onboard foreign professionals in full legal compliance.

Termination and Offboarding Under EOR Indonesia


Indonesia has detailed procedures governing employment termination. Our EOR Indonesia services ensure proper documentation and compliance during the exit process.


Offboarding Support with Employer of Record Indonesia:

  • Drafting and delivery of termination notices
  • Final salary, benefits, and severance calculations
  • Reporting to BPJS and government entities
  • Exit interviews and offboarding documentation

By managing every step with care, AYP ensures that all terminations under our EOR Indonesia service meet local requirements.

Case Study: Supporting Expansion in Indonesia with EOR


A Singapore-based consumer goods company needed to hire a local sales and operations team in Indonesia to support its growing customer base.


Challenges in Indonesia Expansion Without an EOR

  • No local entity or ability to register with BPJS
  • Urgent hiring timeline for key business roles
  • Need to issue bilingual contracts and manage tax obligations

How AYP Helped with Employer of Record Indonesia

  • Employed a team of 10 across Jakarta and Surabaya via our EOR Indonesia model
  • Handled payroll, BPJS registration, and tax compliance
  • Supported visa applications for regional staff and managed onboarding

Results from EOR Indonesia Support

  • Achieved full operational readiness within 3 weeks
  • Compliant employee documentation and payroll from day one
  • Smooth onboarding and employee satisfaction through local HR support

Client Testimonials – Success with EOR Indonesia


“AYP’s Employer of Record Indonesia service helped us scale fast without worrying about regulations. Their local support was invaluable.” – Country Manager, Singapore-based FMCG Company

“Using AYP’s EOR Indonesia platform meant we avoided the hassle of entity setup and gained immediate access to the market.” – Head of People, Regional Tech Startup

Ready to Hire? Let AYP Be Your EOR Indonesia Partner


Expand confidently into Indonesia with AYP’s Employer of Record Indonesia solution. We offer:

  • Fast onboarding and full local compliance
  • Seamless payroll and benefits management
  • Local HR and legal support
  • A proven platform to manage your Indonesian workforce

Get in touch today and let us simplify your Indonesia expansion through EOR Indonesia.

Frequently Asked Questions (FAQs)

What is Employer of Record Indonesia?

An Employer of Record (EOR) in Indonesia legally employs your staff on your behalf, taking care of HR, compliance, tax, and payroll—allowing you to operate without a local entity.

Why choose Employer of Record Indonesia over direct hiring?

With EOR Indonesia, you avoid company registration, BPJS contributions, and local tax complexities. AYP serves as the employer on record while you manage day-to-day performance.

Who provides Employer of Record Indonesia services?

AYP is a trusted EOR provider with in-country HR and compliance specialists in Indonesia. We deliver employment solutions tailored to local regulations and business culture.

Can AYP sponsor work permits and visas in Indonesia?

Yes. AYP supports RPTKA, IMTA, and KITAS applications under our EOR Indonesia offering.

How does AYP onboard Indonesia employees?

  • Local contract drafting and signing
  • BPJS and tax registration
  • Benefits setup as agreed
  • Day-one onboarding with HR guidance

Can I transfer an employee from other countries to Indonesia using EOR?

Yes. AYP handles employment migration, permits, and onboarding under our Employer of Record Indonesia process.

How is payroll and tax managed under EOR Indonesia?

We manage all payroll elements, including BPJS deductions, income tax (PPh 21), and reporting.

What are the income tax obligations for EOR employees in Indonesia?

Employees are taxed progressively. AYP calculates deductions and ensures timely PPh 21 filings.

Still have more questions? Contact us today

Indonesia