Hiring remote employees in Indonesia is now easier than ever through an Employer of Record (EOR) model. But before onboarding begins, the job offer letter is the first legal and professional step that connects the employer, the employee, and the EOR under Indonesian labor compliance.
This guide explains how to draft, issue, and manage compliant job offer letters for remote EOR employees in Indonesia aligned with local labor laws, taxation (PPh21), and mandatory social contributions (BPJS Ketenagakerjaan & BPJS Kesehatan).
Table of Contents
- What is a Job Offer Letter in Indonesia?
- Job Offer Letter vs Employment Contract in Indonesia
- Is an Offer Letter Legally Binding in Indonesia?
- Offer Letter and Onboarding Flow
- When Should a Job Offer Letter Be Issued?
- Salary and Benefits in Offer Letters
- Compliance Requirements for Offer Letters in Indonesia
- Job Offer Letter Checklist for Indonesia
- Benefits of Sending Offer Letters Through an EOR in Indonesia
- Asanify: Your Trusted EOR Partner in Indonesia
- Job Offer Letter Template for Indonesia (EOR Version)
- FAQs
What is a Job Offer Letter in Indonesia?
A job offer letter in Indonesia is a formal communication that confirms a company’s intention often through an Employer of Record (EOR) to hire a candidate. It outlines the role, compensation, benefits, and employment terms while maintaining full compliance with the Indonesian Manpower Law (Law No. 13 of 2003, as amended by the Omnibus Law).
When hiring via an EOR in Indonesia, the offer letter is issued by the EOR partner (e.g., Asanify) acting as the local legal employer. This ensures:
- Full compliance with PPh21 income tax regulations.
- Proper registration with BPJS Ketenagakerjaan (employment insurance) and BPJS Kesehatan (healthcare).
- Inclusion of THR (Tunjangan Hari Raya) entitlements and statutory leave.
Job Offer Letter vs Employment Contract in Indonesia
These two documents serve distinct legal functions under Indonesian labor law.
| Criteria | Offer Letter | Employment Contract |
| Definition | Formal letter outlining job role, pay, and key terms. | Legally binding document under Indonesian Manpower Law. |
| Stage of Hiring | Issued after selection but before employment starts. | Signed upon acceptance and before the first working day. |
| Legal Standing | Non-binding; shows intent to hire. | Fully enforceable and required by law. |
| Content | Basic terms: role, salary, location, start date. | Detailed rights, duties, termination clauses, benefits, BPJS, THR. |
| Issued By | EOR or employer to confirm job offer. | EOR (as the legal employer) after offer acceptance. |
| Purpose | Invitation to accept employment. | Formalizes employment relationship under law. |
Tip: Both documents must align in content to ensure compliance and avoid disputes under the Indonesian Industrial Relations framework.
Suggested Read: Employer of Record in Indonesia: Complete 2025 Hiring & Compliance Guide
Is an Offer Letter Legally Binding in Indonesia?
An offer letter alone is not legally binding under Indonesian law. It serves as an official expression of intent.
However, once accepted and followed by an employment contract, the terms mentioned become enforceable.
For example:
If an offer letter includes salary, role, and start date, and the employee begins work accordingly, those clauses are binding under Article 1601 of the Indonesian Civil Code.
To maintain compliance, employers especially when hiring remotely via EOR should issue both documents sequentially.
Offer Letter and Onboarding Flow
Here’s the step-by-step flow that global companies hiring via an EOR in Indonesia should follow:
1. Drafting the Offer Letter
Include:
- Company name and address (or EOR partner’s details).
- Position title and department.
- Gross monthly salary (before PPh21).
- Benefits (BPJS coverage, leave, THR).
- Working hours and start date.
- Digital acceptance process (signature or acknowledgment).
2. Sending and Acceptance
Send via secure digital channels or EOR platform. The candidate should respond within 3–7 business days.
3. Post-Acceptance Onboarding
Once accepted:
- The EOR issues the employment contract and registers the employee with BPJS.
- Payroll and tax setup (PPh21) are configured.
- IT access, induction, and role-specific onboarding follow.
This process ensures a compliant and smooth transition into remote employment.
When Should a Job Offer Letter Be Issued?
Ideally, the offer letter should be sent immediately after final selection preferably within 48 hours.
Prompt issuance helps attract top Indonesian talent before competing employers do.
Best practices:
- Clearly mention the offer validity period (3–5 working days).
- Include acceptance instructions and a contact point for queries.
- Follow up through email or call to confirm receipt and acceptance.
Salary and Benefits in Offer Letters
Transparency in salary details is essential for compliance with Indonesia’s wage regulations. The offer letter must specify:
- Gross Monthly Salary (in IDR).
- Basic pay, allowances, and bonuses.
- BPJS deductions (employer and employee contributions).
- PPh21 tax deduction basis.
- THR entitlement, paid annually before religious holidays.
Example:
| Component | Description |
| Basic Salary | IDR 10,000,000 |
| Allowances | IDR 2,000,000 (meal, transport) |
| BPJS Contributions | Employer: 4.24%; Employee: 1% |
| PPh21 Deduction | As per income bracket |
| THR | One month’s base salary per year |
Compliance Requirements for Offer Letters in Indonesia
When issuing a job offer letter, EORs and employers must comply with these legal standards:
- Manpower Law (Law No. 13/2003) and amendments under the Omnibus Law 2020.
- PPh21 income tax reporting and withholding.
- BPJS registration within 30 days of joining.
- THR payment at least 7 days before major religious holidays.
- Anti-discrimination and equal employment opportunity under Government Regulation No. 35/2021.
Failing to adhere to these standards may lead to administrative penalties or labor disputes.
Job Offer Letter Checklist for Indonesia
Before sending out an offer, use this checklist:
| Checklist Item | Details | Notes |
| Job Title | Clearly defined position name | Avoid vague designations |
| Work Type | Remote/Hybrid/Full-time | Mention working hours |
| Start Date | Confirm agreed date | Ensure consistency with contract |
| Compensation | Include gross salary, allowances | State in Indonesian Rupiah |
| BPJS | Confirm registration for both schemes | Ketenagakerjaan & Kesehatan |
| THR | One month’s basic salary per year | Mention eligibility |
| Probation | Duration (max 3 months) | State clearly |
| Termination Clause | Align with Article 156 | Define notice period |
| Compliance | Refer to local labor laws | Required by EOR |
| Signature & Date | Candidate’s acknowledgment | Digital or physical |
This ensures every offer complies with Indonesia’s employment and taxation rules.
Benefits of Sending Offer Letters Through an EOR in Indonesia
Working with an Employer of Record (EOR) like Asanify offers multiple advantages:
- Local compliance: All documents follow Indonesian Manpower Law and tax rules.
- Speed: Offers are issued and accepted digitally in days.
- Scalability: Hire across cities like Jakarta, Surabaya, and Bali without an entity.
- Risk reduction: EOR assumes full legal and payroll liability.
- Consistency: Standardized templates that align with company and local law.
Suggested Read: 10 Best Employer of Record (EOR) Service Providers in Indonesia (2025)
Asanify: Your Trusted EOR Partner in Indonesia
Asanify helps global employers hire, onboard, and pay employees in Indonesia without establishing a local entity.
With Asanify:
- Job offer letters and contracts are compliant with Indonesian Manpower Law.
- All BPJS and PPh21 obligations are managed seamlessly.
- You get customizable, bilingual templates (English + Bahasa Indonesia).
- End-to-end onboarding, payroll, and HR compliance are handled under one platform.
This ensures a smooth and legally sound hiring experience for your remote team.
Job Offer Letter Template for Indonesia (EOR Version)
Here’s what your EOR job offer letter in Indonesia should include:
Sections to Include:
- Employer and employee details (EOR partner’s legal name).
- Job title, department, and start date.
- Salary structure with IDR amount and deductions.
- Probation period and working hours.
- Statutory benefits (BPJS, THR, leave entitlements).
- Termination and notice clause.
- Digital signature section for acceptance.
How to Use:
- Customize details through your EOR portal.
- Verify salary compliance and benefits before sending.
- Share digitally for e-signature and onboarding confirmation.
This approach ensures every remote hire in Indonesia receives a professional and compliant offer letter.
FAQs
Yes. Digital or e-signed offer letters are recognized as valid communication under Indonesia’s Electronic Information and Transactions Law (ITE Law No. 11/2008).
Mention gross salary, PPh21 deductions, BPJS contributions, and net take-home pay.
Yes, but only before the candidate signs acceptance. After acceptance, termination procedures must follow the Manpower Law.
Within 30 days of the employee’s start date, as mandated by BPJS regulations.
THR (Tunjangan Hari Raya) is a mandatory religious holiday bonus equal to one month’s salary, paid at least seven days before the relevant holiday.
Typically up to 3 months, and it must be stated in both the offer letter and employment contract.
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.
