Indonesia
Make employment in Indonesia easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Indonesia, all in one easy-to-use platform.
- Capital City
Jakarta
- Currency
Indonesian rupiah (Rp, IDR)
- Languages
Indonesian
- Population size
267,670,543
Facts & Stats
- Capital City
Jakarta
- Currency
Indonesian rupiah (Rp, IDR)
- Languages
Indonesian
- Population size
267,670,543
- Ease of doing business
Easy
- Cost of living index
37.44 (2021)
- Payroll frequency
Monthly
- VAT - standard rate
10%
- GDP - real growth rate
5.0 (2019)
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.
Grow your team in Indonesia with Remote
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.
Remote 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 Remote.
Risks of misclassification
Indonesia, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Indonesia may lead to fines and penalties for the offending company.
Employing in Indonesia
Indonesia’s Labour Law of 2003 is the principal labour regulation that defines provisions for employee protections and workers’ rights at the federal level which are applicable to Indonesia’s workforce of 4.2 million.
Employees in Indonesia enjoy protections against discrimination based on age, religion, gender expression, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Indonesia.
Minimum Wage
The monthly minimum wage for DKI Jakarta is IDR 5,067,381.
Payroll Cycle
For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
Onboarding Time
We can help you get a new employee started in Indonesia fast. The minimum onboarding time we need is only 14 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 Remote 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. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
17 Public holidays
Want to see and manage all holidays? Sign up for our free HRIS!
Effortless HR in Indonesia: Take the Tour
Competitive benefits package in Indonesia
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practising “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Indonesia are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Fair Pricing in Indonesia
Employer of Record
Hire and pay your global team
Starting at €550/month
paid annually, or €645/month paid monthly
Top features
Satisfaction guaranteed
No deposits or hidden fees
Zero onboarding or offboarding fees
Compliant equity incentives support including withholding and reporting
Built-in security and compliance
Fast onboarding (average 2-3 days)
Flexible, localised benefits
Contractor Management
Compliantly onboard and pay contractors
€27
per contractor/month
Top features
Only pay for contractors you actively work with
Work with contractors in 200+ countries and territories
Create, edit, and sign tailored, localised contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
Payroll
Consolidate your multi-country payroll
€27
per employee/month
Top features
Simplify: Comprehensive platform that integrates all payroll functions
Support: Personalised assistance with a dedicated team and specialists
Accuracy: Test runs and parallel pay runs before implementation
Compliance: Adhere to local labour laws in every country
Timeliness: Accurate and on-time payroll with labour authority reporting handled
Experience: Seamless payroll with easy access to payslips and expenses
Top features
Guided onboarding and offboarding
Employee profile and document management
Time and attendance (time off and tracking)
Expense management and reimbursement
Employee self-serve on the platform and mobile app