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Hire employees and contractors in Indonesia

Outstaffer’s guide to employing in Indonesia.
Indonesia employee facts

Facts & stats

Officially the Republic of Indonesia, Indonesia is a conglomerate of 17,000 islands, and is simultaneously the world’s 4th most populous nation and Southeast Asia’s most powerful economy, with a GDP valued at over $3.5 trillion.Home to over 1,300 ethnic groups and 700 languages, Indonesia hosts one of the world’s most ethnically diverse population, its second-most biologically diverse, and a history of record economic growth over the past two decades.

Capital city
Jakarta
Currency
Indonesian rupiah (Rp, IDR)
Official Languages
Indonesian
Population size

267,670,543 (est. 2018)

Ease of doing business

Easy

Cost of living index

37.44 (2021)

Payroll frequency

Monthly

VAT - standard rate

10%

GDP - real growth rate

10% (2019)

Tech talent

Tech Talent in Indonesia

Indonesia is emerging as a dynamic hub for tech talent in Southeast Asia. The country boasts a rapidly growing community of skilled software developers, engineers, and IT professionals. Indonesian universities are producing graduates with a strong technical foundation, and cities like Jakarta and Bandung are experiencing a surge in tech startups and innovation hubs. Indonesia's youthful population, coupled with a thriving digital economy, makes it an attractive destination for tech companies and entrepreneurs. Indonesian tech talent is known for its innovation and adaptability, playing a pivotal role in shaping the country's position as a significant player in the regional and global tech industry.

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Top Skills

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Top Industries

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Average Market Salary

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Diversity

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Years of Experience

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Years in Current Company

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

hire from Indonesia

Grow your team in Indonesia with Outstaffer

Looking to employ workers in Indonesia? Companies hiring in Indonesia must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Outstaffer can employ your team in Indonesia on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Indonesia team. You can also pay contractors now in Indonesia with Outstaffer.

#hire from Indonesia

Grow your team in Indonesia with Outstaffer

Looking to employ workers in Australia? Companies hiring in Australia must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.

Outstaffer makes it easy for companies of all sizes to employ workers in Australia using our employer of record solution. We can help employ your Australian team using our local Australian entity, as well as handle your payroll, benefits, taxes, and local legal compliance.

Public holidays

Below are national public holidays applicable for all regions in this country

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Jan 1

New Year's Day

Feb 12

New Year (Tahun Baru Masehi)

Apr 23

Eid Al-Fitr. (Hari Raya Idul Fitri)

Jul 19

Islamic New Year (Tahun Baru Islam)

Jan 22

Chinese New Year (Tahun Baru Imlek)

Nov 27

International Labor Day (Hari Buruh Internasional)

Feb 18

Isra Mi’raj (Prophet’s Muhammad Ascension)

May 18

Ascension of Jesus Christ (Kenaikan Yesus Kristus)

Sep 28

Birthday of Prophet Muhammad

Mar 22

the Holy Day of Silence (Hari Suci Nyepi)

Jun 1

Pancasila Day (Hari Lahir Pancasila)

Dec 25

Christmas Day (Hari Raya Natal)

Apr 7

Good Friday (Wafat Yesus Kristus)

Jun 4

Vesak Day

Apr 22

Eid Al-Fitr (Hari Raya Idul Fitri)

Jun 29

Eid al-Adha (Hari Raya Idul Adha)

Minimum Wage

Indonesian minimum wage rates are fixed at the provincial level and are reviewed annually. Currently, the minimum wage ranges from IDR 1,704,608 ($117.65) to IDR 4,276,349 ($295.15) per month in Jakarta, the capital city.


Overtime Pay

Indonesian minimum wage rates are fixed at the provincial level and are reviewed annually. Currently, the minimum wage ranges from IDR 1,704,608 ($117.65) to IDR 4,276,349 ($295.15) per month in Jakarta, the capital city.


Payroll Cycle

All employee payments are made bi-monthly by Outstaffer.com on your behalf with absolutely no margins or markups.

Onboarding Time

We can help you get a new employee started in Indonesia fast. The minimum onboarding time we need is only 19 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Outstaffer platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. We have a payroll cut-off date of the 10th of the month unless otherwise specified.

13th Month Salary

attract & retain talent

Competitive benefits package
in Indonesia

Outstaffer supports our clients by offering competitive benefits packages that will help you attract and retain the best talent across the globe!

Our benefits specialists have done the research on norms and requirements in each local market and have crafted packages that will allow your employees to thrive, no matter what country they live in.Our benefits packages in India are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

Supplemental screening & vaccine insurance
Supplemental maternity insurance
Employee engagement funds
Flexible work schedule
Additional paid holidays
Supplementary vision insurance
Supplemental dental insurance
Private health insurance
Learn More About Benefit Packages
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Taxes in the Indonesia

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in the Indonesia
Employer taxes
0.24% - 1.74%
Work accident insurance
2%
Pension contribution
3.7%
Old Age
4%
Health insurance
0.3%
Death benefit contribution

Employee income tax
0.24% - 1.74%
Work accident insurance
2%
Pension contribution
3.7%
Old Age
4%
Health insurance
0.3%
Death benefit contribution
Personal income tax rates
Leave

Types of leave

Statutory leave

Salaried employees in Australia are entitled to four weeks of paid annual leave each year. Shift workers receive an additional week of paid leave, for a total of five weeks per year.

Parental and maternity leave

Salaried employees in Australia are entitled to four weeks of paid annual leave each year. Shift workers receive an additional week of paid leave, for a total of five weeks per year.

Paid parental and maternity leave

Salaried employees in Australia are entitled to four weeks of paid annual leave each year. Shift workers receive an additional week of paid leave, for a total of five weeks per year.

Partner/paternity leave

Salaried employees in Australia are entitled to four weeks of paid annual leave each year. Shift workers receive an additional week of paid leave, for a total of five weeks per year.

Parental leave

Salaried employees in Australia are entitled to four weeks of paid annual leave each year. Shift workers receive an additional week of paid leave, for a total of five weeks per year.

Other leave

Salaried employees in Australia are entitled to four weeks of paid annual leave each year. Shift workers receive an additional week of paid leave, for a total of five weeks per year.

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Employment termination

Termination process

Indonesian labor law is unique in that it places the onus on employers to go the extra mile to avoid terminating an employee by negotiating to offer better working conditions, coaching, etc.

That aside, employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, work-related offenses, sustained illness over the course of 12 months, or business contingencies like redundancy or insolvency.

Notice period

There is no notice stipulated notice period but employers are generally expected to provide 30-days advance notice before terminating an employee.


Severance pay

Employees are entitled to severance pay that’s proportional to their tenure with an employer as defined below:

  • 1 months wages: Up to 1 year of employment
  • 2 months wages: Up to 1 year, but less than 2 years of employment
  • 3 months wages: Up to 2 years, but less than 3 years of employment
  • 4 months wages: Up to 3 years, but less than 4 years of employment
  • 5 months wages: Up to 4 years, but less than 5 years of employment
  • 6 months wages: Up to 5 years, but less than 6 years of employment
  • 7 months wages: Up to 6 years, but less than 7 years of employment
  • 8 months wages: Up to 7 years, but less than 8 years of employment
  • 9 months wages: 8 or more years of employment

Probation periods

Probationary periods can only be set for employees on indefinite-term contracts and cannot exceed three months.

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