EOR in Indonesia
Employer of Record in Indonesia
- Expand into Indonesia without setting up a local legal entity
- Manage payroll, BPJS contributions, and tax compliance effortlessly
- Minimize legal risks and avoid permanent establishment complications
- Onboard employees faster with compliant Indonesian employment contracts
- Achieve cost savings with transparent pricing and streamlined market entry
Happy Customers Globally
Covered
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Currency
Indonesian Rupiah (IDR)
Capital
Jakarta
Official Language
Indonesian
Payroll Cycle
Monthly
Recognized Globally: Ranked #1 for ‘Ease of Use’ & ‘Customer Support’
our advantage
Why Choose Asanify's EOR in Indonesia
Asanify is the #1 ranked Employer of Record platform across multiple G2 categories. Our EOR service in Indonesia enables businesses to hire top Indonesian talent while ensuring full compliance with the Omnibus Law on Job Creation, BPJS requirements, and complex labor regulations. Focus on your business growth while we handle Indonesian employment complexities.
Fast, Compliant Hiring
Onboard employees in Indonesia within days using legally compliant employment agreements that meet all Manpower Law requirements. Skip the lengthy entity registration process and start building your Indonesian team immediately.
Complete Payroll and BPJS Management
We handle monthly payroll in Indonesian Rupiah, including accurate calculation of income tax (PPh 21), BPJS Ketenagakerjaan (employment social security), and BPJS Kesehatan (health insurance). Ensure timely, compliant payments and reporting.
Full Labor Law Compliance
Navigate Indonesia's evolving labor regulations with confidence. Asanify ensures compliance with the Omnibus Law, fixed-term and indefinite employment contracts, severance requirements, Religious Holiday Allowance (THR), and all Ministry of Manpower regulations.
Cost-Effective Expansion
Eliminate the substantial costs of establishing a PT (Perseroan Terbatas) in Indonesia, including minimum capital requirements, notary fees, licensing costs, and ongoing administrative expenses. Asanify provides transparent, affordable pricing for market entry.
How Asanify's Employer of Record Works in Indonesia
Asanify becomes the legal employer of your Indonesian workforce, assuming all employment-related compliance responsibilities and liabilities while you maintain complete operational control over daily work activities and management decisions.
- Legal Employment: We serve as the employer of record, managing all regulatory obligations and employment compliance
- BPJS Administration: Complete management of BPJS Ketenagakerjaan and BPJS Kesehatan registrations, contributions, and reporting
- Regulatory Monitoring: Continuous tracking of Indonesian labor law changes and immediate implementation of compliance updates
Trusted by top companies around the Globe
Employer of record
Indonesian Employment Law Compliance
Indonesia’s employment landscape is governed by the Omnibus Law on Job Creation (Law No. 11/2020) and supporting regulations. Asanify ensures full compliance with employment contract requirements, working hours, overtime rules, BPJS contributions, Religious Holiday Allowance (THR), leave entitlements, and severance calculations. We manage all filings with the Ministry of Manpower and tax authorities.
- BPJS Ketenagakerjaan and BPJS Kesehatan contributions and reporting managed
- Income tax (PPh 21) withholding and monthly/annual tax reporting handled
- Religious Holiday Allowance (THR), leave benefits, and severance calculations administered
What our happy customers say
Asanify's, should be the number 1 choice for companies looking to pay their overseas employees and contractors. I have a team of 40 people in India and not for a single month have i experienced any delays in the payment process.
In my business, things happen fast, and requirement for new employees is sudden. In such a situation a trusted partner like Asanify comes in handy as I know I can quickly ramp with onboarding and employee formalities diligently taken care of.
As a global company, we go through M&As in countries where we do not have presence. In India, we quickly onboarded ~30 employees as part of a takeover. With Asanify's turnaround time the overall change was managed brilliantly.
Asanify’s expertise when it comes to Local Compliances is something I have benefitted extensively from. Whether its Employee-Contractor classification, or the local laws for employee benefits and working hours - I trust the guidance provided.
Apart from using EOR services, I find a lot of value in the fully automated Asanify HRMS. For me, it makes it absolutely comfortable that I can access all my HR inforation anytime, anywhere and on any platform - Slack, Whatsapp etc.
My employees are in India, while I am based in Dubai and the co. in the US. Managing time zones is a huge challenge for us. Working with global partners like Asanify ensures that all my payments, and query resolutions are done in time.
It is paramount that my employees are well taken care of. Asanify goes above and beyond In terms of employee benefits, salary structuring to make it more tax friendly and constant guidance. For over a year with Asanify’s EOR, I have had no reason to feel disappointed.
Employer of Record FAQs in Indonesia
What is an Employer of Record in Indonesia?
An Employer of Record (EOR) in Indonesia is a third-party organization that becomes the legal employer of your workers, managing all employment contracts, payroll, tax withholding, BPJS contributions, and compliance with Indonesian Manpower Law. This allows your company to hire Indonesian employees without establishing a PT (local entity).
How quickly can I hire employees in Indonesia through Asanify?
With Asanify’s EOR service, you can onboard employees in Indonesia within 3-5 business days. We handle all documentation, employment contracts, BPJS registrations, and compliance requirements, enabling your team to start working quickly without entity setup delays.
What is BPJS and how does Asanify manage it?
BPJS consists of two mandatory social security programs: BPJS Ketenagakerjaan (employment insurance covering old age, pension, work accident, and death benefits) and BPJS Kesehatan (national health insurance). Asanify handles employee registration, monthly contribution calculations, payments, and all required reporting to BPJS authorities.
Does using an EOR create permanent establishment risk in Indonesia?
No, using Asanify’s EOR service significantly reduces permanent establishment risk. As the legal employer of record, Asanify holds employment liability and manages regulatory compliance, allowing your company to operate in Indonesia without creating a taxable presence or permanent establishment.
What is Religious Holiday Allowance (THR) in Indonesia?
THR (Tunjangan Hari Raya) is a mandatory bonus payment equal to one month’s salary that must be paid before major religious holidays (typically Eid al-Fitr). All employees who have worked for at least one month are entitled to THR. Asanify automatically calculates and disburses THR in compliance with Indonesian regulations.
How does payroll work with Asanify in Indonesia?
Asanify processes monthly payroll in Indonesian Rupiah, calculating gross-to-net salary including income tax (PPh 21) withholding, BPJS Ketenagakerjaan and BPJS Kesehatan deductions, and any other applicable contributions. We ensure timely salary payments and handle all tax and BPJS reporting to Indonesian authorities.
What types of employment contracts are used in Indonesia?
Indonesian law recognizes two main contract types: PKWT (fixed-term contracts, typically for project-based work) and PKWTT (indefinite/permanent contracts). Under the Omnibus Law, regulations have been updated to provide more flexibility. Asanify prepares appropriate contracts based on your needs while ensuring full compliance with current regulations.
How is severance calculated in Indonesia?
The Omnibus Law specifies severance calculations based on length of service and reason for termination. Severance may include base severance, service appreciation pay, and compensation for unused entitlements. Asanify manages these complex calculations and ensures proper payment in accordance with Indonesian Manpower Law.
Can I terminate employees in Indonesia through an EOR?
Yes, Asanify manages the termination process in compliance with Indonesian labor law, including proper documentation of termination reasons, calculation of severance and other entitlements, notice periods, and final settlement procedures. We ensure all processes align with Omnibus Law provisions to minimize legal risks.