Hire in Indonesia,
compliantly,
without the complexity.

Indonesia combines ASEAN's largest domestic market with rapid digital economy growth, tech unicorns, and world-dominant EV nickel supply chains.

Key Economic Sectors

• Digital Economy & FinTech: Mobile payments, e-commerce, on-demand logistics, and SaaS engineering in Jakarta and Bandung.
• EV Battery & Nickel Smelting: World's largest nickel reserves powering electric vehicle battery gigafactories (Morowali, Weda Bay).
• Renewable Energy & Infrastructure: Geothermal power, solar initiatives, and construction of the new green capital Nusantara (IKN).

Regulated by the Manpower Law and Omnibus Law (PP No. 35/2021).

• Mandatory Bahasa Indonesia: Under Law No. 24/2009, employment contracts must be drafted in Bahasa Indonesia (or bilingual with Bahasa legally prevailing).
• Contract Types: Permanent (*PKWTT*) and Fixed-Term (*PKWT* - capped at 5 years maximum under PP 35/2021).
• Probation Period: Maximum statutory probation is 3 months (only permitted for permanent PKWTT contracts).

• Standard Hours: 40 hours per week (8 hours/day over 5 days, or 7 hours/day over 6 days).
• Overtime Surcharges (PP 35/2021): 150% (1.5× hourly wage) for the 1st overtime hour; 200% (double time) for subsequent hours; up to 300%–400% for working on weekly rest days and public holidays.

• Annual Paid Vacation: Minimum 12 working days per year after 12 continuous months of service.
• Public Holidays: ~16 to 18 official national public holidays (including Islamic, Christian, Hindu, Buddhist, and civic holidays) + joint leave days (*Cuti Bersama*).
• Maternity Leave: 3 months (1.5 months prenatal + 1.5 months postnatal) paid at 100% by the employer (extendable up to 6 months under the Maternal and Child Welfare Law for specific health conditions).
• Paternity Leave: 2 paid days upon childbirth.

Mandatory Religious Holiday Allowance (*Tunjangan Hari Raya – THR*)

Under Ministerial Regulation No. 6/2016, employers must pay a mandatory 13th-month bonus equal to 1 full month's salary at least 7 days prior to the employee's designated religious holiday (Idul Fitri for Muslims, Christmas for Christians, Nyepi for Hindus, Waisak for Buddhists, Chinese New Year for Confucians).

Social Security (BPJS) Breakdown

Personal Income Tax (PPh 21): Progressive rates from 5% (up to IDR 60M/yr) up to 35% (on earnings > IDR 5 Billion/yr), withheld monthly with DGT under the Effective Average Rate (TER) system.

Omnibus Law Severance Matrix (PP 35/2021)

• Notice Period: Minimum 14 business days prior written notice (7 days during probation).
• Severance Package Components: Includes Standard Severance Pay (*Uang Pesangon* up to 9 months), Long Service Pay (*UPMK* up to 10 months), and Compensation of Rights (*UPH* for unused leave).

• Bypass $650k USD (IDR 10B) Capital Rule: Avoid heavy foreign investment thresholds and lengthy PT PMA formation.
• BPJS, THR & PPh 21 Compliance: Automated management of religious holiday allowances, BPJS health/pension, and TER tax withholdings.
• Expatriate Work Permit (RPTKA / KITAS) Sponsorship: EOR sponsors foreign management and tech specialist visas through the Ministry of Manpower.