Employer of Record (EOR) Indonesia
Overview
An Employer of Record (EOR) service allows international and domestic companies to hire employees in Indonesia without needing a client’s local legal entity. Business Hub Asia acts as the legal employer, handling all administrative, legal, and employment obligations. This enables clients to focus on their strategic growth while ensuring regulatory compliance and operational effectiveness.
Free ConsultationKey Features
Legal Employer Representation
We act as an official employer before the government and labor authorities, ensuring the entire process complies with Indonesian law.
Employee Recruitment & Onboarding
From employee search, selection, to placement, we do it professionally and tailor to your business needs.
Payroll & Tax Management
Calculation and payment of salaries, PPh 21, BPJS Health and Employment, as well as routine reporting to relevant agencies.
Employment Contract & Legal Documentation
Preparation of employment contracts following Indonesian labor law, both for permanent, contract and expatriate employees.
Employment Law Compliance
Ensure all employment activities comply with the Job Creation Law, Ministry of Labor Regulations, and other local regulations.
Risk Management & Legal Protection
Mitigate legal and administrative risks that may arise from direct employment relationships, including in cases of termination or disputes.
Minimum Requirements
Job & Headcount
Job description and number of employees required
Placement Details
Employee placement locations and details of work facilities
Compensation Policy
Salary policy, benefits, and desired work structure
Company Legality
Company legal documents (if applicable) for administrative cooperation
Common Eligible Sectors
This service can be used for almost all business sectors, especially for:
Foreign companies without local entities in Indonesia
Startups looking to test the market before full expansion
Technology and digital companies that employ remote workers
Consulting, finance, energy, and manufacturing companies
Short-term project businesses that need local manpower fast
Process and Timeline
1
Needs Analysis & Recruitment Strategy
Consultations with clients to determine staffing and organizational requirements, including creating a recruitment strategy with job specifications, required skills, and sourcing methods. Estimated Time: 3-5 working days.
2
Sourcing and Candidate Selection
Source candidates through job postings and searches, then screen CVs, conduct interviews, and administer competency tests to assess fit. Estimated Time: 10-14 working days.
3
Contract Development and Employee Onboarding
Draft and execute compliant employment contracts in Indonesia and manage employee onboarding.Estimated Time: 3-5 working days.
4
HR Management and Compliance
Manage employee administration, including payroll, tax, BPJS, and labor law compliance..
*Preparation of EOR services takes at least 3-5 weeks and is followed by ongoing HR and compliance management according to client needs.
Important Consideration
- EOR is an ideal solution for foreign companies that want to operate quickly without forming a local PT, or in parallel of their company registration process.
- We ensure full transparency in salary management, tax, and legal compliance.
- Employees will work directly under your direction, but their legal status is under our entity as EOR.
- All processes follow the latest labor and taxation standards in Indonesia.
Frequently Asked Questions
What is an Employer of Record (EOR)?
An EOR is a third party that legally hires employees on behalf of your company, handling all legal, tax and administrative aspects of employment.
Is an EOR suitable for companies without an entity in Indonesia?
An Employer of Record (EOR) offers a practical approach for international companies seeking to employ local talent without establishing a formal business presence. This solution allows foreign businesses to build a local team without the complexities of entity setup.
How is the payroll and tax system managed?
We calculate and pay salaries, PPh 21, and BPJS contributions regularly, and deliver pay slips to employees every month.
Does EOR only apply to local employees?
No, we can also manage the placement of foreign workers (TKA) under Indonesian licensing and immigration regulations.
What are the risks of hiring employees without an EOR or local entity?
Businesses operating in Indonesia without a local entity face high legal risks, including potential fines, tax non-compliance, and labor disputes. An Employer of Record (EOR) is crucial for mitigating these risks.
Can I transfer employees from the EOR to my entity in the future?
Yes. We support the transition of employees to your company if you decide to set up a local entity in the future.
Streamline Your Human Resources and Payroll Processes
Focus on growing your team while we handle HR policies, employment contracts, payroll processing, and statutory obligations.
Disclaimer
The content provided on this website is published by PT. Bisnis Hub Asia (“we“, or “us“) for general informational purposes only. While every effort is made to ensure the accuracy and timeliness of the information presented, we make no representations or warranties, express or implied, as to the completeness, accuracy, reliability, suitability, or availability of any content, products, or services described on this website. Any reliance placed on such information is strictly at the user’s own risk.
We are a private, independent entity and are not affiliated with, authorized by, or acting on behalf of the Government of the Republic of Indonesia, its ministries, agencies, or any officially appointed representatives. This website does not provide, offer, or promote any official government documents or services, including but not limited to:
-
Business identification numbers (Nomor Induk Berusaha – NIB);
-
Tax refunds or rebates;
-
Stay Permit or electronic travel authorizations;
-
Passports or other immigration-related documents.
Any references to such services are provided solely for general informational purposes and should not be construed as an offer or facilitation of official services.
We are committed to ensuring the protection of your personal data in accordance with Law No. 27 of 2022 on Personal Data Protection. Any personal information collected through this website will be processed for the purposes clearly stated in our [Privacy Statement]. We do not sell or misuse personal data under any circumstances.
By accessing and using this website, you acknowledge and agree to the terms set out in this Disclaimer. You further agree to use this website and the information provided responsibly and in compliance with applicable laws and regulations.
For further information or questions regarding this Disclaimer, please contact us via the channels provided on our Contact page.
Disclaimer
The content provided on this website is published by PT. Bisnis Hub Asia (“we“, or “us“) for general informational purposes only. While every effort is made to ensure the accuracy and timeliness of the information presented, we make no representations or warranties, express or implied, as to the completeness, accuracy, reliability, suitability, or availability of any content, products, or services described on this website. Any reliance placed on such information is strictly at the user’s own risk.
We are a private, independent entity and are not affiliated with, authorized by, or acting on behalf of the Government of the Republic of Indonesia, its ministries, agencies, or any officially appointed representatives. This website does not provide, offer, or promote any official government documents or services, including but not limited to:
-
Business identification numbers (Nomor Induk Berusaha – NIB);
-
Tax refunds or rebates;
-
Visas or electronic travel authorizations (e-Visa, e-VoA);
-
Passports or other immigration-related documents.
Any references to such services are provided solely for general informational purposes and should not be construed as an offer or facilitation of official services.
We are committed to ensuring the protection of your personal data in accordance with Law No. 27 of 2022 on Personal Data Protection. Any personal information collected through this website will be processed for the purposes clearly stated in our [Privacy Statement]. We do not sell or misuse personal data under any circumstances.
By accessing and using this website, you acknowledge and agree to the terms set out in this Disclaimer. You further agree to use this website and the information provided responsibly and in compliance with applicable laws and regulations.
For further information or questions regarding this Disclaimer, please contact us via the channels provided on our Contact page.
Meet the Expert
Meet the Expert
Nurmia Dwi Agustina, S.E., MBA
President Director at Business Hub Asia
Nurmia is an experienced corporate services and regulatory compliance professional with over 15 years of experience in Southeast Asia. The co-founder of Cekindo Indonesia/Vietnam and former COO of InCorp Indonesia, she has led large teams in legal, tax, and BPO. As Director at Business Hub Asia, she leads regional service delivery, helping companies navigate complex licensing and compliance in Indonesia, Vietnam, and the Philippines.
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