Indonesia is emerging as a strategic hub for remote hiring in 2025. With its young, tech-driven workforce, expanding digital economy, and government reforms supporting foreign investment, Indonesia offers a cost-effective and compliant environment for building remote teams. From IT development and finance to customer support and design, Indonesian professionals are increasingly sought after by global companies.
This guide explains how to hire remote employees in Indonesia compliantly covering employment laws, payroll taxes, salary benchmarks, and how Employer of Record (EOR) services like Asanify simplify hiring and management.
Table of Contents
- Overview of Indonesia for Remote Hiring
- Leading Industries Driving Employment in Indonesia
- Industry Landscape Snapshot
- In-Demand Skills in Indonesia (2025)
- Key Legal Considerations for Hiring in Indonesia
- Payroll and Tax Compliance in Indonesia
- Salary Ranges for Remote Roles in Indonesia (2025)
- Steps to Hire a Remote Team in Indonesia
- Total Cost of Hiring Remote Employees in Indonesia
- How Asanify Simplifies Hiring Remote Teams in Indonesia
- Conclusion
- FAQs
Overview of Indonesia for Remote Hiring
Indonesia is Southeast Asia’s largest economy and home to one of the fastest-growing digital workforces. The country’s economic diversification, affordable labor market, and improving infrastructure have made it a preferred destination for remote hiring.
Key advantages of hiring in Indonesia include:
- Cost-effective salaries compared to Western and neighboring markets.
- Widespread digital literacy and government focus on “Industry 4.0.”
- High English proficiency and cultural adaptability for global roles.
- Convenient time zone overlap with Asia-Pacific and parts of Europe.
With more than 60% of the population under the age of 35 and expanding access to education in technology and business, Indonesia presents long-term potential for global employers.
Leading Industries Driving Employment in Indonesia
Indonesia’s employment growth is supported by strong economic sectors and a digitally evolving workforce. The most active industries in remote hiring are:
- Information Technology (IT): Software, app, and web development lead the market.
- Financial Services and Fintech: Driven by digital payments and e-banking.
- Business Process Outsourcing (BPO): Customer service, KYC, and back-office support.
- E-commerce and Digital Marketing: Rapidly growing online business ecosystem.
- Design and Creative Media: Animation, video editing, and content creation for international clients.
These industries provide diverse remote employment opportunities for global companies expanding into Indonesia.
Suggested Read: Remote Employees Onboarding Checklist with EOR in Indonesia (2025)
Industry Landscape Snapshot
Indonesia’s workforce is concentrated in cities like Jakarta, Bandung, Surabaya, and Denpasar (Bali), where internet infrastructure and coworking facilities support remote collaboration.
- Multinationals and startups coexist in a dynamic digital ecosystem.
- Freelance professionals contribute significantly to global outsourcing.
- Government programs like “Making Indonesia 4.0” promote digital literacy.
The combination of talent readiness, government initiatives, and affordable costs makes Indonesia a top destination for hiring remote teams in 2025.
In-Demand Skills in Indonesia (2025)
Indonesian professionals bring a wide range of skills suitable for global companies. The top in-demand competencies include:
- Technology: Full-stack, mobile app, and cloud developers.
- Finance: Payroll management, tax (PPh21), and compliance expertise.
- Customer Support: Multilingual service professionals with English and Bahasa Indonesia fluency.
- Digital Marketing: SEO, PPC, and social media strategy.
- Design & Content: UI/UX design, video editing, and brand storytelling.
Global employers benefit from Indonesia’s skilled yet affordable workforce that adapts quickly to international work cultures.
Key Legal Considerations for Hiring in Indonesia
Hiring employees in Indonesia requires compliance with the Manpower Law (Law No. 13/2003) and its amendments under the Omnibus Law. Employers must follow national labor standards, contractual rules, and statutory benefit obligations.
Employment Contracts
Employers must provide written employment contracts specifying job roles, salaries, benefits, and duration. Employment may be:
- Permanent (for ongoing work)
- Fixed-term (for temporary or project-based work)
- Freelance (with clear deliverables and scope)
Working Hours and Overtime
- Standard work hours: 40 hours per week (7 hours/day for 6 days or 8 hours/day for 5 days).
- Overtime: Paid at 1.5x–2x regular hourly wages.
- Employers must maintain attendance and payroll records.
Termination and Severance
Termination follows Article 156 of the Manpower Law, requiring severance pay, long-service awards, and compensation based on tenure.
Partnering with an Employer of Record (EOR) helps manage these regulations accurately while minimizing compliance risks.
Payroll and Tax Compliance in Indonesia
Payroll management in Indonesia involves statutory deductions, mandatory employer contributions, and compliance with tax laws.
Mandatory Components
- PPh21 (Income Tax): Deducted at source by employers (5%–35% based on salary).
- BPJS Ketenagakerjaan: Social security for employment, workplace safety, and pension.
- BPJS Kesehatan: National health insurance program shared by employer and employee.
- THR (Tunjangan Hari Raya): Annual religious holiday bonus equivalent to one month’s salary.
Employer Obligations
- Register all employees with BPJS schemes.
- Submit PPh21 filings monthly to the tax authority.
- Maintain clear payroll records for audits.
- Ensure THR is paid before major religious holidays (e.g., Idul Fitri).
EORs like Asanify manage payroll, BPJS registration, and tax submissions, ensuring complete compliance for global companies hiring remotely in Indonesia.
Salary Ranges for Remote Roles in Indonesia (2025)
| Role | Average Annual Salary (IDR) | Average Annual Salary (USD) | Notes |
| Software Developer | 180,000,000 – 300,000,000 | $11,000 – $18,000 | High demand in fintech and SaaS |
| Digital Marketing Specialist | 120,000,000 – 240,000,000 | $7,000 – $14,000 | Social media and e-commerce growth |
| Data Analyst | 150,000,000 – 270,000,000 | $9,000 – $16,000 | BI and data visualization tools |
| Customer Support Executive | 80,000,000 – 150,000,000 | $5,000 – $9,000 | Multilingual roles in BPOs |
| Finance & Accounting Analyst | 150,000,000 – 280,000,000 | $9,500 – $17,000 | Expertise in PPh21 & compliance |
| HR & Payroll Specialist | 130,000,000 – 250,000,000 | $8,000 – $15,000 | Strong demand for EOR support roles |
Salaries vary based on city, industry, and experience. Jakarta and Bandung typically offer the highest pay rates.
Steps to Hire a Remote Team in Indonesia
Hiring a remote team in Indonesia can be completed efficiently with the right legal and HR support.
Step 1: Define Hiring Needs
Identify required roles, skill levels, and engagement type full-time, part-time, or contractual.
Step 2: Choose a Hiring Model
- Direct Employment: Requires entity registration and full compliance.
- Freelancer Contracts: Flexible but risk misclassification under local law.
- EOR Hiring: Enables quick and compliant hiring without local incorporation.
Step 3: Source and Interview Candidates
Use platforms like JobStreet, LinkedIn, and Kalibrr to find qualified professionals.
Step 4: Draft Offer Letters and Contracts
Ensure clear job descriptions, salary, BPJS coverage, and THR entitlement.
Step 5: Onboard and Manage Employees
An EOR partner manages employee registration, payroll setup, and tax filings while you focus on operations and performance.
Total Cost of Hiring Remote Employees in Indonesia
| Role | Average Gross Salary (IDR) | Employer Contributions (~15%) | Estimated Benefits | Total Employer Cost (IDR) |
| Software Developer | 250,000,000 | 37,500,000 | 15,000,000 | 302,500,000 |
| Data Analyst | 200,000,000 | 30,000,000 | 10,000,000 | 240,000,000 |
| Digital Marketer | 150,000,000 | 22,500,000 | 8,000,000 | 180,500,000 |
| HR & Payroll Specialist | 180,000,000 | 27,000,000 | 10,000,000 | 217,000,000 |
| Customer Support Executive | 100,000,000 | 15,000,000 | 6,000,000 | 121,000,000 |
Employer costs include salary, BPJS contributions, THR, and other statutory benefits.
How Asanify Simplifies Hiring Remote Teams in Indonesia
Asanify enables global companies to hire and manage employees in Indonesia without setting up a local entity. Acting as an Employer of Record (EOR), Asanify handles:
- Legally compliant employment contracts.
- Payroll processing and PPh21 tax deductions.
- BPJS registration and THR management.
- Fast onboarding within 1–2 weeks.
- Ongoing HR, benefits, and compliance management.
With Asanify, global employers can expand seamlessly while ensuring 100% compliance with Indonesian labor laws.
Suggested Read: Employer of Record in Indonesia: Complete 2025 Hiring & Compliance Guide
Conclusion
Indonesia’s growing digital workforce and competitive cost structure make it an excellent destination for building remote teams in 2025. By leveraging an Employer of Record (EOR) providers like Asanify, global businesses can hire quickly, stay compliant, and manage payroll effortlessly all without creating a local entity.
Hiring remotely in Indonesia is not only cost-efficient but strategically advantageous for companies looking to scale global operations with confidence.
FAQs
Yes. Through an Employer of Record (EOR) like Asanify, companies can hire legally without registering a local entity.
Employers must provide BPJS Ketenagakerjaan, BPJS Kesehatan, and THR (one month’s salary before religious holidays).
PPh21 is Indonesia’s personal income tax withheld by employers from monthly salaries based on progressive tax rates.
A standard 40-hour workweek either 7 hours per day (6 days) or 8 hours per day (5 days).
Severance is based on Article 156 of the Manpower Law and depends on tenure, with one to nine months’ salary as baseline.
With Asanify, companies can hire and onboard remote employees in Indonesia within 1–2 weeks.
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.
