Indonesia is fast becoming a hotspot for global companies looking to hire skilled, affordable, and tech-driven talent. Yet, navigating local employment laws, BPJS contributions, THR bonuses, and PPh21 tax can be challenging without local expertise. An Employer of Record (EOR) simplifies this process by acting as your local employer managing payroll, benefits, and compliance so you can focus on growth.
In this article, we highlight the 10 best Employer of Record (EOR) service providers in Indonesia for 2025, helping you choose the right partner for compliant and seamless hiring.
Table of Contents
- Overview of EOR Services in Indonesia
- Why Hire Employees in Indonesia?
- How an Employer of Record (EOR) Works in Indonesia
- Key Benefits of Using an EOR in Indonesia
- Key Considerations for Hiring in Indonesia
- Top 10 Employer of Record (EOR) Providers in Indonesia 2025
- How to Choose the Right EOR Partner for Indonesia
- Why Global Companies Prefer Asanify for EOR in Indonesia
- FAQs
Overview of EOR Services in Indonesia
Indonesia’s economic landscape has rapidly transformed in recent years, driven by digitalization, a young workforce, and a surge in foreign investment. For global employers, Indonesia presents a promising opportunity but navigating local employment regulations, taxation, and social security laws can be complex.
An Employer of Record (EOR) helps simplify this process. By acting as the legal employer for your local staff, an EOR handles everything from drafting compliant employment contracts to managing payroll, PPh21 tax, BPJS contributions, THR payments, and employee offboarding.
This model eliminates the need for a local entity and ensures you remain 100% compliant with Indonesia’s Manpower Law (Law No. 13/2003), giving you a smooth, risk-free entry into the Indonesian market.
Why Hire Employees in Indonesia?
Hiring in Indonesia offers several strategic and financial advantages for international companies. The country’s rapidly developing economy, competitive labor market, and digital infrastructure make it a preferred hiring destination in Southeast Asia.
Here’s why global companies choose Indonesia:
- Large, skilled workforce: With over 135 million workers, Indonesia boasts one of the largest labor markets in Asia.
- Competitive labor costs: Average monthly salaries are significantly lower than Western markets, especially for technical, administrative, and creative roles.
- Strong digital adoption: The rise of e-commerce, fintech, and SaaS has led to a pool of tech-savvy professionals.
- Strategic business location: Situated between major Asian economies, Indonesia is a gateway for regional expansion.
- Government reforms: The Omnibus Law has made labor regulations more business-friendly and encouraged foreign investment.
By partnering with an Employer of Record in Indonesia, companies can access this talent pool while ensuring full compliance with PPh21 taxation, BPJS Ketenagakerjaan and Kesehatan, and THR obligations.
Suggested Read: EOR vs Payroll Solutions: What’s the Difference?
How an Employer of Record (EOR) Works in Indonesia
An EOR acts as your official employer of record in Indonesia while you maintain control over the employee’s daily activities.
The EOR model includes:
- Employment contracts: Drafted per Indonesia’s Manpower Law and Omnibus Law, specifying wages, benefits, and termination terms.
- Payroll processing: Accurate monthly payroll with PPh21 (income tax) deductions and filings to the tax authority.
- BPJS registration: Enrollment of all employees in BPJS Ketenagakerjaan (employment insurance) and BPJS Kesehatan (health insurance).
- THR payments: Mandatory annual religious bonus equal to one month’s salary.
- Severance and termination compliance: Managed under Article 156 of the Manpower Law.
- Visa sponsorship (if needed): For foreign employees through IMTA and KITAS processing.
This arrangement ensures businesses meet all legal obligations while focusing on growth and operations.
Key Benefits of Using an EOR in Indonesia
Working with an EOR provider in Indonesia offers measurable business and operational benefits:
- Rapid market entry: Hire within days instead of waiting months for company registration.
- Full compliance assurance: Handle payroll, PPh21 tax, BPJS, and THR accurately.
- Cost efficiency: Avoid costly setup and maintenance of a local entity.
- Risk mitigation: The EOR assumes all legal employer liabilities.
- Seamless onboarding: Digital documentation and localized contracts simplify hiring.
- Scalability: Add or remove team members based on project or seasonal requirements.
- Employee satisfaction: On-time payroll, BPJS coverage, and benefits improve retention.
EORs offer both flexibility and compliance a combination essential for companies entering Indonesia’s dynamic workforce environment.
Key Considerations for Hiring in Indonesia
Before hiring in Indonesia, foreign employers should understand the country’s unique employment and tax framework.
Here are critical factors to consider:
- Employment Contracts: Contracts must be written in Bahasa Indonesia and outline compensation, benefits, and duration (permanent or fixed-term).
- PPh21 Tax Obligations: Employers are responsible for calculating and remitting PPh21 (personal income tax) on behalf of employees monthly.
- BPJS Contributions: Both employer and employee must contribute to BPJS Ketenagakerjaan and BPJS Kesehatan, covering social and health security.
- THR (Tunjangan Hari Raya): A one-month salary bonus paid before major religious holidays is mandatory.
- Working Hours and Overtime: Employees typically work 40 hours per week, and overtime must be compensated as per government regulations.
- Severance Pay: Upon termination, employees are entitled to severance benefits under Article 156, based on tenure and salary.
- Data Privacy and Record-Keeping: Employers must ensure secure handling of personal employee data in line with Indonesian law.
These factors highlight the importance of working with an EOR solution in Indonesia that ensures smooth compliance with these requirements.
Top 10 Employer of Record (EOR) Providers in Indonesia 2025
Selecting the right Employer of Record (EOR) partner in Indonesia is crucial for ensuring smooth hiring, payroll accuracy, and full compliance with local labor laws. The following list highlights the top 10 EOR providers in Indonesia for 2025, chosen for their proven expertise in managing BPJS, THR, and PPh21 obligations while supporting fast, compliant expansion. Each provider offers unique strengths depending on your company’s size, growth goals, and operational needs.
- Asanify
- Deel
- Remote
- Multiplier
- Papaya Global
- Skuad
- Velocity Global
- Globalization Partners
- Horizons
- Rivermate
1. Asanify
Asanify is a leading Employer of Record in Indonesia, helping global companies hire and manage employees without establishing a local entity. It automates payroll, PPh21 deductions, BPJS registration, and THR payments, ensuring full compliance with the Indonesian Manpower Law.
Key Features:
- Local EOR and payroll management system
- BPJS and THR automation for all employees
- Tax computation (PPh21) and digital filing
- Leave, attendance, and document tracking tools
- Seamless digital onboarding with localized contracts
Pricing:
Starts at USD 299 per employee/month (custom plans available).
Ideal For:
Startups, SMEs, and enterprises expanding into Indonesia compliantly.
Additional Insight:
Asanify stands out for its deep local expertise and transparent pricing structure. Its automated compliance checks help employers avoid costly penalties while keeping payroll accurate and timely every month.
2. Deel
Deel offers one of the most popular global EOR platforms, supporting over 150 countries, including Indonesia. It’s designed for companies that need quick onboarding, multi-currency payments, and strong compliance assurance.
Key Features:
- Legally compliant local employment contracts
- Automated PPh21 tax deductions
- BPJS registration and management
- THR bonus handling and local benefit setup
- Centralized dashboard for employee documents
Pricing:
From USD 599/employee/month.
Best For:
Enterprises managing distributed global teams.
Additional Insight:
Deel’s integrated tools allow HR teams to handle complex Indonesian payroll while maintaining visibility across regions. It’s ideal for global companies seeking streamlined compliance and efficient scaling.
3. Remote
Remote provides full-stack EOR and global payroll solutions, helping companies manage teams across Southeast Asia. In Indonesia, it ensures compliance with labor laws, payroll accuracy, and benefit administration.
Key Features:
- BPJS registration and monthly contributions
- Automated payroll and tax reporting
- Employee lifecycle and contract management
- Termination, severance, and benefits compliance
Pricing:
From USD 599 per employee/month.
Best For:
Tech companies hiring remote employees across Indonesia.
Additional Insight:
Remote is known for its intuitive platform and dedicated compliance support, helping foreign employers stay updated with evolving Indonesian labor regulations.
4. Multiplier
Multiplier focuses on simplifying cross-border hiring and compliance across Asia, with a strong local presence in Indonesia. It automates contracts, payroll, and benefits to streamline workforce management.
Key Features:
- Compliant employment contracts under Indonesian law
- BPJS, THR, and PPh21 management
- Real-time employee dashboards
- Multi-currency payment support
Pricing:
Starting at USD 400 per employee/month.
Best For:
Companies expanding regionally across Southeast Asia.
Additional Insight:
Multiplier’s regional expertise makes it ideal for businesses scaling across multiple Asian markets. It helps manage complex tax filings and benefit calculations without manual intervention.
5. Papaya Global
Papaya Global offers a unified platform for global payroll and EOR solutions, helping companies manage compliance, taxes, and workforce data securely.
Key Features:
- Global payroll automation and workforce analytics
- BPJS, PPh21, and THR compliance
- Automated onboarding and benefits management
- Data privacy and employee record security
Pricing:
Starts at USD 650/employee/month.
Best For:
Enterprises managing global operations and complex compliance needs.
Additional Insight:
Papaya Global integrates advanced analytics into payroll, giving CFOs and HR leaders real-time visibility into salary costs and statutory obligations in Indonesia.
6. Skuad
Skuad enables startups and fast-growing businesses to hire and pay employees in Indonesia compliantly. It manages contracts, payroll, and BPJS filings within an easy-to-use digital platform.
Key Features:
- Local employment contracts and onboarding tools
- Automated BPJS registration and THR handling
- Payroll and compliance dashboard
- Real-time employee data management
Pricing:
Starts at USD 399 per employee/month.
Best For:
Startups and small businesses expanding into Indonesia.
Additional Insight:
Skuad’s flexible plans and regional focus make it ideal for new entrants to the Indonesian market. Its self-service platform allows easy scaling for small and mid-sized teams.
7. Velocity Global
Velocity Global offers comprehensive global EOR solutions, supporting employment compliance, payroll, and visa management in Indonesia. It’s a strong choice for multinational firms with large-scale workforce needs.
Key Features:
- Local compliance and payroll support
- HR advisory and benefits management
- Work permit and visa processing
- End-to-end employment lifecycle management
Pricing:
Custom quotes available based on team size and services.
Best For:
Enterprises expanding across multiple Asian markets.
Additional Insight:
Velocity Global’s long-standing global footprint makes it a reliable choice for companies prioritizing legal compliance and scalability in Indonesia’s evolving labor ecosystem.
8. Globalization Partners
Globalization Partners (G-P) is a pioneer in the global employment and EOR space, offering deep compliance coverage and HR infrastructure in Indonesia.
Key Features:
- Pre-compliant employment contracts
- Full payroll, BPJS, and THR management
- Tax filings and benefits setup
- Multilingual HR and legal support
Pricing:
Starts from USD 700 per employee/month.
Best For:
Large multinational organizations with strict compliance standards.
Additional Insight:
G-P’s end-to-end EOR model ensures global consistency in HR operations while addressing Indonesia’s local labor requirements in detail.
9. Horizons
Horizons combines EOR, recruitment, and HR outsourcing services with a specialization in Asian markets, including Indonesia. It supports clients through every stage of hiring, payroll, and compliance.
Key Features:
- Full PPh21 and BPJS compliance
- Payroll processing and benefits administration
- Employee offboarding and severance handling
- Talent acquisition and local hiring support
Pricing:
Available on request, tailored to hiring volume.
Best For:
Companies seeking both recruitment and employment support in Indonesia.
Additional Insight:
Horizons’ dual service model helps businesses not only employ but also source high-quality local candidates, making it ideal for fast growth and market testing.
10. Rivermate
Rivermate provides affordable and flexible EOR and contractor management services to companies hiring globally, including Indonesia.
Key Features:
- Payroll, benefits, and tax administration
- Local compliance and reporting
- Leave, attendance, and HR tools
- 24/7 HR and compliance support
Pricing:
From USD 450 per employee/month.
Best For:
SMEs and startups expanding their international teams.
Additional Insight:
Rivermate’s simplicity and cost-effectiveness make it a great entry-level solution for smaller firms looking to hire Indonesian professionals quickly and compliantly.
Comparison Table: Top 10 Employer of Record (EOR) Providers in Indonesia (2025)
| EOR Provider | Starting Price (USD/month) | Key Features | Compliance Coverage (BPJS, THR, PPh21) | Best For | Strengths |
|---|---|---|---|---|---|
| Asanify | From $299 | EOR and payroll automation, BPJS & THR processing, digital onboarding, attendance tracking | Full coverage of BPJS, THR, and PPh21 | Startups, SMEs, global companies | Local expertise, transparent pricing, full legal compliance |
| Deel | From $599 | Global HR platform, localized contracts, payroll & benefits automation | BPJS, THR, PPh21 | Large enterprises, distributed teams | Fast onboarding, global compliance framework |
| Remote | From $599 | Full EOR service, payroll, benefits, and termination support | BPJS, THR, PPh21 | Tech companies, global remote teams | Strong platform, reliable payroll and compliance tools |
| Multiplier | From $400 | Multi-currency payroll, Asia-wide compliance, benefits administration | BPJS, THR, PPh21 | Regional enterprises, scaling startups | Regional scalability, cost-effective compliance management |
| Papaya Global | From $650 | Global payroll automation, workforce analytics, benefits & tax management | BPJS, THR, PPh21 | Large multinational corporations | Data-driven reporting, high security, advanced analytics |
| Skuad | From $399 | Digital onboarding, payroll automation, BPJS and THR management | BPJS, THR, PPh21 | Startups and small businesses | Easy setup, strong customer support, affordable pricing |
| Velocity Global | Custom | Full employment lifecycle, visa processing, payroll & HR support | BPJS, THR, PPh21 | Large-scale enterprises | Comprehensive compliance management, immigration expertise |
| Globalization Partners | From $700 | EOR and HR infrastructure, benefits setup, multilingual HR support | BPJS, THR, PPh21 | Multinational enterprises | Trusted global network, consistent compliance delivery |
| Horizons | Custom | EOR, recruitment, payroll & severance management | BPJS, THR, PPh21 | Companies hiring specialized local talent | Dual EOR and recruitment model, flexible hiring approach |
| Rivermate | From $450 | EOR and contractor management, tax filings, attendance tools | BPJS, THR, PPh21 | SMEs and startups | Affordable solution, quick setup, flexible plans |
Suggested Read: The Power of EOR Services: How to Choose a Compatible EOR
How to Choose the Right EOR Partner for Indonesia
Choosing the right EOR provider is crucial for long-term success. Consider the following:
- Local compliance experience: Verify that the provider understands Indonesian employment law, BPJS, and PPh21 regulations.
- Transparent pricing: Avoid providers with hidden onboarding or termination fees.
- Technology platform: Ensure it integrates payroll, attendance, and document management.
- Customer support: Local, bilingual HR support enhances employee satisfaction.
- Scalability: Select an EOR that supports future regional expansion.
Why Global Companies Prefer Asanify for EOR in Indonesia
Asanify distinguishes itself through deep local expertise, transparent pricing, and automation-driven compliance. It’s built to simplify every stage of employment in Indonesia from onboarding to payroll to tax filing.
Why Asanify leads the market:
- 100% compliance with Manpower Law, BPJS, and PPh21
- Seamless payroll and THR automation
- Customizable HR dashboards for attendance and leave tracking
- Fast employee onboarding typically in 5 days or less
- Transparent pricing starting from USD 299/month
Asanify is the go-to Employer of Record solution in Indonesia for global companies seeking compliant, efficient, and scalable hiring.
FAQs
An EOR legally employs workers on behalf of a foreign company, managing contracts, payroll, and compliance.
It saves time, reduces costs, and eliminates the need for complex legal registrations while ensuring full compliance.
EOR pricing typically ranges between USD 299–700 per employee/month, depending on services.
BPJS covers employment and health insurance contributions that both employer and employee must pay.
THR (Tunjangan Hari Raya) must be paid at least seven days before the employee’s major religious holiday.
Yes, through an Employer of Record that handles all local compliance on your behalf.
The primary tax is PPh21, which is deducted and remitted monthly by the employer (EOR).
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
