If you’re looking to hire employees in Indonesia for your business, AYP Group can help make the process easy. Our Indonesia EOR service handles HR, benefits, payroll, and tax needs, allowing you to quickly hire employees and test out new markets in Indonesia. Our EOR solutions enable you to build your team without the legal and financial responsibilities of setting up a separate entity or worrying about contractor risks. Let us handle the details while you focus on your business goals. Contact us today to get started!

 

 

 

Country Overview 

Indonesia is a sovereign nation located in Southeast Asia and Oceania, with a population of over 270 million people. It is the world’s largest island country and the world’s fourth most populous country. Indonesia has a mixed economy, with a combination of private enterprise and government control. It is a major player in the global economy, with major industries including agriculture, manufacturing, and tourism.

 

Capital City

Jakarta

 

Currency

Indonesian Rupiah (IDR)

 

Principal Language

Bahasa Indonesia

 

Government

Presidential representative democratic republic

 

Employment contracts

In Indonesia, there are several types of employment contracts that an employer can offer to an employee. These include:

  1. Permanent contract: This is a long-term contract that does not have a fixed expiration date.
  2. Temporary contract: This is a short-term contract that is usually for a specific project or task.
  3. Part-time contract: This is a contract for an employee who works fewer hours per week than a full-time employee.
  4. Internship contract: This is a contract for a student or recent graduate who is working in a company to gain practical experience.
  5. Apprenticeship contract: This is a contract for a person who is learning a trade or craft through on-the-job training.
  6. Freelance contract: This is a contract for a self-employed person who provides services to a company on a project-by-project basis.

 

Working Hours

The standard working hours per week is 40 hours, with a maximum of 8 hours per day

 

Public holidays

 

Here is a list of national holidays in Indonesia:

  1. New Year’s Day: January 1st
  2. Chinese New Year: January or February (date varies)
  3. Good Friday: March or April (date varies)
  4. Easter Monday: March or April (date varies)
  5. International Labor Day: May 1st
  6. Ascension Day of Jesus Christ: May or June (date varies)
  7. Idul Fitri: May or June (date varies)
  8. Idul Adha: July or August (date varies)
  9. Indonesian Independence Day: August 17th
  10. Christmas Day: December 25th
  11. The Prophet Muhammad’s Birthday: Date varies (observed by Muslims)

 

Benefits contribution

  1. Social security: Employers are required to contribute to the social security system, which is administered by the Social Security Administering Body for Employment (BPJS Ketenagakerjaan). This system provides protection for employees in the event of illness, injury, or death. The contribution rate is based on the employee’s salary and is typically shared equally between the employer and the employee.
  2. Retirement: Employers are required to contribute to the employee retirement fund, which is administered by the Social Security Administering Body for Employment (BPJS ketenagakerjaan). This fund is a retirement savings scheme for private sector employees. The contribution rate is based on the employee’s salary and is typically shared equally between the employer and the employee.
  3. Health insurance: Employers are required to provide health insurance for their employees. The contribution rate for health insurance is typically shared equally between the employer and the employee.

 

Find out about AYP’s total workforce management solution today! 

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