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Indonesia is the 4th most populous country in the world and boasts the largest digital economy in Southeast Asia. This means there are over 260 million young, high-potential talent that are digital natives. The country also has the most unicorns in the region. The sheer volume of talent, coupled with a thriving tech ecosystem, is ushering in a next-gen workforce who are equipping themselves with a variety of soft and hard skills to keep pace with market trends.
In-Demand Roles
Indonesians usually don't address their superiors by their first name; instead, they add titles in front of their name when talking to them. It is polite to call senior colleagues 'bapak/pak' (sir) or 'ibu/bu' (ma'am); for example, Indonesians might address a middle-aged male senior manager as Pak [name]. Peers can be called 'mas', 'mbak', or 'kak'.
The work culture in Indonesia is peaceful with little conflict. Employees avoid talking back to their bosses, preferring to follow directions and keep them happy. Criticism is usually kept private and low-key to protect the pride of others.
Indonesians maintain good manners at the workplace, believing a supportive, harmonious workplace is key to productivity. They also never forget their 'thank yous' — it's good manners to express gratitude after receiving help from a colleague.
As a Muslim-majority country, a culture of modesty and gratitude is prevalent in the Indonesian archipelago. This influences business attire as well as office norms. Employers should provide concessions when it comes to Friday prayers, Ramadan working hours, and Eid bonus payouts.
| Province | Monthly Minimum Wage (IDR) | (USD) |
|---|---|---|
| DKI Jakarta | 5,067,381 | $325 |
| Papua | 4,024,270 | $258 |
| North Kalimantan | 3,361,653 | $215 |
| Bangka Belitung | 3,640,000 | $233 |
| North Sulawesi | 3,545,000 | $227 |
| Aceh | 3,460,672 | $222 |
| South Sumatra | 3,456,874 | $221 |
| Riau Islands | 3,402,492 | $218 |
| West Papua | 3,393,000 | $217 |
| East Kalimantan | 3,360,858 | $215 |
| Riau | 3,294,625 | $211 |
| South Kalimantan | 3,282,812 | $210 |
| Central Kalimantan | 3,261,616 | $208 |
| North Maluku | 3,200,000 | $205 |
| Jambi | 3,037,121 | $195 |
| Gorontalo | 3,025,100 | $194 |
| Province | Monthly Minimum Wage (IDR) | (USD) |
|---|---|---|
| Maluku | 2,949,953 | $189 |
| West Sulawesi | 2,914,958 | $187 |
| Southeast Sulawesi | 2,885,964 | $185 |
| Bali | 2,813,672 | $180 |
| West Sumatra | 2,811,449 | $180 |
| North Sumatra | 2,809,915 | $180 |
| Central Sulawesi | 2,736,698 | $175 |
| Banten | 2,727,812 | $175 |
| Lampung | 2,716,497 | $174 |
| West Kalimantan | 2,702,616 | $173 |
| Bengkulu | 2,507,079 | $161 |
| West Nusa Tenggara | 2,444,067 | $157 |
| East Nusa Tenggara | 2,186,826 | $140 |
| East Java | 2,165,244 | $139 |
| Special Region of Yogyakarta | 2,125,897 | $136 |
| West Java | 2,057,495 | $132 |
| Central Java | 2,036,947 | $130 |
In Indonesia, payroll compliance involves tax payments and social security contributions which must be withheld by employers each pay cycle. The payroll reporting deadline is the 10th of the following month, and reports must be kept for at least 5 years. Payments must be made to employees and tax authorities from an country bank account.
The maximum allowable overtime is 4 hours per day or 18 hours per week. Overtime pay exemptions are applicable to employees in specific job classifications, typically at leadership levels. However, the company must establish and regulate which job levels are eligible for overtime, and in the absence of such designation, all levels should have the right to receive overtime pay.
Employment agreements must be in Indonesian. There are two main types:
1. Permanent Employment (Indefinite Term) - PKWTT
2. Contract Employment (Fixed Term) - PKWT
Indonesia observes at least 14 public holidays annually, including a week off for Eid. Key holidays include:
Special Leaves
Medical Leaves
Income tax rates range from 5% to 35% depending on gross income
Indonesia mandates Tunjangan Hari Raya (THR), a one-month salary bonus before major holidays (Idul Fitri for Muslims, Christmas for others). THR covers base salary and allowances, excluding bonuses. It is prorated for new hires
