1.
Recruitment & Hiring
Requirements in
Indonesia
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2.
Key Considerations: Employment
Below are some of the key considerations that should be taken into account before contracting staff in Indonesia:
Max employer contribution
11.74 %
Total cost of employment
• Automatic pension enrolment
• Health insurance social security
• Work related injures and/or illnesses coverage
• Special leave (maternity, death of a relative, marriage, etc.)
Employee benefits
Yes, 3 months maximun
Is there an employee
probation period?
Yes, 12 days/year, + 14
public holidays
Vacation
Entitlement?
Yes, 100%
Legal benefits are
garanted to employee?
Yes, qualified expatriate
Can expatriate staff be
hired?
Yes
Do staff need a local
employment contract?

3.
Through a local
legal entity
Through a PEO solution:
Professional Employer
Organization
Pathways to hiring staff

4.
Advantages:
• Greater control of your employees
• Better knowledge of local market, laws and
regulation
• Viewed more positively than a PEO solution
Disadvantages:
• High set-up/ongoing costs
• Administration involved in managing a
local company
• Accounting and tax obligations
Forming a Legal Entity in Indonesia
In the Indonesia, there are 3 main types of legal entities: Limited Liability Company (PT), Limited Liability
Company owned by foreigners ( PMA) and LImited Partnership (CV)

5.
Advantages:
• You can operate without forming and
maintaining a local entity
• Limited legal responsibility
• Cost-effective way to convert
international contractors into employees
Disadvantages:
• The PEO becomes a co-employer
• Loss of control
• Costs involved with PEO services
• Compromised company culture
Professional Employer Organisation (PEO)
Working with an international PEO is an option to employ staff abroad without having your own company.

6.
Biz Latin Hub is a market leader in
helping individuals and companies to
successfully do business globally and has
multilingual services that are reliable,
tailored and responsive.
Our group is owned and managed by an
experienced team of local and expat
professionals, dedicated to assisting our
clients to navigate their way through the
complexities of the global business
environment.
We can help!

7.
See how our services can support
your global expansion.
Legal Services
Accounting
& Taxation
Immigration

8.
Are you ready to expand globally?
Contact us now.
contact@bizlatinhub.com
www.bizlatinhub.com