Hire in Indonesia

Indonesia, located between the Indian Ocean and the Pacific Ocean along the equator between Asia and Australia, is divided into 34 provinces. The country consists of 17,508 islands, and is the world’s fourth-most-populous country. It is also the world’s third-largest democracy and the world’s largest archipelagic state.

Some of the industries that have helped maintain the steady growth of Indonesia’s economy include; the fintech industry, the petrochemical industry, the infrastructure industry, the agriculture industry, and the healthcare sector.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Indonesia.

Onboard your talent in Indonesia

in 10 minutes

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Fast-track your talent onboarding while ensuring 100% compliance with local regulations.

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Guidance & payroll management

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Hire in Indonesia through an

EOR

Easily onboard your remote talent in Indonesia through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Indonesia

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Cost of living index

$$ (97 of 139 countries)

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Currency

Indonesian Rupiah (Rp, IDR)

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Payroll frequency

Bi-weekly/Monthly

Basic facts

Indonesia, located between the Indian Ocean and the Pacific Ocean along the equator between Asia and Australia, is divided into 34 provinces. The country consists of 17,508 islands, and is the world’s fourth-most-populous country. It is also the world’s third-largest democracy and the world’s largest archipelagic state.

Some of the industries that have helped maintain the steady growth of Indonesia’s economy include; the fintech industry, the petrochemical industry, the infrastructure industry, the agriculture industry, and the healthcare sector.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Indonesia.

Capital

Jakarta

Official language/s

Indonesian

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Population

277.5 million (2023 est.)

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VAT - standard rate

11%

The holidays mentioned below are valid for the year 2025.

 

January 1New Year’s Day
January 27Isra Mi'rajMovable
January 29Chinese New YearMovable, taken on January 23 in lieu
March 29Holy Day of Silence (Saka New Year)
Marc 31- April 1Hari Raya Idul FitriMovable
April 18Good FridayMovable
April 20Easter Day
May 1Labor Day
May 12Vesak Day
May 29Ascension of Jesus Christ
June 1Pancasila Day
June 6Eid al-AdhaMovable
June 27Islamic New YearMovable
August 17Independence Day
September 5Prophet Muhammad's BirthdayMovable
December 25Christmas Day

The approximate time for sharing the contract with an employee in Indonesia is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • Fixed employment contracts cannot be established for any job for more than five years.
  • Workers employed on an indefinite basis are generally entitled to severance, long-service pay, and compensation of rights on termination of employment, but eligibility for long-service pay is subject to a minimum of three years of service.
  • Work performed on public holidays attracts payment of up to four times the usual wage.

All employees in Indonesia, including expatriates who work for a minimum of six months in the country, must participate in and make contributions to the National Social Security System (Sistem Jaminan Sosial Nasional  or “SJSN”), which is administered by the Social Security Administration Board (Badan Penyelenggara Jaminan Sosial  or “BPJS”). 

An overview of employer contributions towards statutory benefits is presented in the table below.

Benefits Employer Contribution
Worker Accident Benefit 0.24 to 1.74%
JSHK – Worker Accident Insurance 0.24%
Life insurance 0.3%
Old age savings 3.7%
Healthcare 4%
Pension 2% (maximum IDR 191,192)

Working Hours

The standard working hours are arranged either as seven hours per day and 40 hours per week for six working days in a week or eight hours per day and 40 hours per week for five working days in a week. Employees working six days per week are entitled to one day of rest per week whilst those who work five days per week get two days of rest.

 

Overtime

Any work performed beyond seven hours per day and 40 hours per week in a six-day work week or eight hours per day and 40 hours per week in a five-day workweek is considered overtime work.   

Overtime must be paid at 1.5 times the normal hourly rate for the first hour and two times the normal rate for the subsequent hours. Overtime is calculated based on an employee’s monthly wage. The wage per hour is equal to 1/173  of the employee’s monthly wage.

 

Probation Period

Working agreements for an unspecified period can require a probation period of three months at the maximum.

Termination Notice Period
Termination Status Notice Period
During Probation No later than 7 days 
Termination by the employer post probation No later than 14 days 
Employee Resignation No later than 30 days

 

 

Working Hours

The standard working hours are arranged either as seven hours per day and 40 hours per week for six working days in a week or eight hours per day and 40 hours per week for five working days in a week. Employees working six days per week are entitled to one day of rest per week whilst those who work five days per week get two days of rest.

 

Overtime

Any work performed beyond seven hours per day and 40 hours per week in a six-day work week or eight hours per day and 40 hours per week in a five-day workweek is considered overtime work.   

Overtime must be paid at 1.5 times the normal hourly rate for the first hour and two times the normal rate for the subsequent hours. Overtime is calculated based on an employee’s monthly wage. The wage per hour is equal to 1/173  of the employee’s monthly wage.

 

Probation Period

Working agreements for an unspecified period can require a probation period of three months at the maximum.

Termination Notice Period
Termination Status Notice Period
During Probation No later than 7 days 
Termination by the employer post probation No later than 14 days 
Employee Resignation No later than 30 days

 

 

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All employees in Indonesia, including expatriates who work for a minimum of six months in the country, must participate in and make contributions to the National Social Security System (Sistem Jaminan Sosial Nasional  or “SJSN”), which is administered by the Social Security Administration Board (Badan Penyelenggara Jaminan Sosial  or “BPJS”). 

An overview of employer contributions towards statutory benefits is presented in the table below.

Benefits Employer Contribution
Worker Accident Benefit 0.24 to 1.74%
JSHK – Worker Accident Insurance 0.24%
Life insurance 0.3%
Old age savings 3.7%
Healthcare 4%
Pension 2% (maximum IDR 191,192)