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Hiring Employees and Recruitment Requirements in Indonesia

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Need to Hire Employees in Indonesia? Don't know how? Learn here whether a PEO or Entity Setup Solution will best suit your Business hiring needs in Indonesia.

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Hiring Employees and Recruitment Requirements in Indonesia

  1. 1. Recruitment & Hiring Requirements in Indonesia www.bizlatinhub.com
  2. 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. 3. Through a local legal entity Through a PEO solution: Professional Employer Organization Pathways to hiring staff
  4. 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. 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. 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. 7. See how our services can support your global expansion. Legal Services Accounting & Taxation Immigration
  8. 8. Are you ready to expand globally? Contact us now. contact@bizlatinhub.com www.bizlatinhub.com

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