Employer of Record Indonesia

PT People Profilers Services, our locally-incorporated Jakarta entity, is the employer under Indonesian law. The employment agreement is between the employee and PT People Profilers Services, drafted in Bahasa Indonesia with an English version.

Your team directs the work, sets priorities and manages performance. We hold the employer obligations: BPJS, PPh 21, THR, leave, working-hours compliance and the end-of-employment rules.

Indonesian citizens and residents legally entitled to work in Indonesia, employed at a location in Indonesia. We do not use EOR for foreign nationals. Under Indonesia's foreign worker rules, an RPTKA and the resulting work permit attach to the Indonesia-incorporated company that employs the expatriate directly, and an EOR employer cannot stand in for it.

If you need to bring a foreign professional to Indonesia, the route is your own PT PMA or representative office sponsoring the permit, and our Work Permit and Immigration team can run those filings.

Yes. Indonesia has specific rules on which functions may be outsourced (alih daya), so we confirm the permitted scope for each role before an engagement begins.

Our EOR engagements cover professional, technical, commercial and managerial hires who work under your direction while PT People Profilers Services holds the employment relationship. If a role sits near that line, we will tell you at scoping.

It depends on the role. Indonesian law limits fixed-term PKWT contracts to work that is temporary by nature, capped at five years in total including extensions, with a compensation payment when the contract ends.

Continuing roles belong on an indefinite PKWTT, which can include a single probation period of up to three months.

We advise on the right form at scoping, because putting a permanent role on a PKWT creates exposure later, not savings.

Employer contributions to BPJS Kesehatan and to the four BPJS Ketenagakerjaan programmes for private-sector employees (JHT old-age savings, JKK work accident, JKM death benefit and JP pension), remitted by the 15th of the following month, and monthly PPh 21 withholding on the TER method with the December reconciliation and annual 1721-A1 slip for the employee.

Employee-side BPJS and tax deductions are taken through payroll. Everything is itemised separately from our service fee.

THR (Tunjangan Hari Raya) is a statutory religious holiday allowance of one month's wage plus fixed allowances for employees with twelve months' service, pro rata from one month, paid at least seven days before the employee's own religious holiday.

We accrue it monthly in your cost estimate so it never arrives as a surprise, and pay it on the statutory timetable.

Indonesia sets minimum wages annually at provincial level (UMP) and, where issued, at city or regency level (UMK) and sector level (UMS). The rate that applies is the one for the location where the employee actually works, so a Jakarta hire and a Bekasi hire on the same role can carry different floors.

We confirm the applicable rate at scoping and again each January when the new rates take effect.

That depends on the contract form and the reason. A PKWT that runs to its end date carries a compensation payment based on length of service. Termination of a PKWTT triggers severance pay, long-service pay and compensation of rights under the current termination rules, calculated on base salary plus fixed allowances, with the multiples depending on the ground for termination.

We calculate the correct figures, document the process and invoice the amounts at cost.

Yes, and clients often do once their PT PMA is operational. We coordinate the transfer so the employee's service continuity is preserved, complete final payroll and statutory filings under PT People Profilers Services, and hand over the personnel file.

There is no transition penalty. The EOR engagement ends when the employee moves across.