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Employer of Record in Indonesia: Hire Without Setting Up a PT PMA

  • We employ your team on local contracts (PKWT or PKWTT) and run payroll, BPJS and PPh 21.
  • You manage the work day to day. We manage the employment admin.
  • One partner for onboarding, benefits, THR and offboarding.

Glints TalentHub is part of Glints, a Southeast Asia talent platform.

Team collaborating remotely, representing hiring in Indonesia through an employer of record

What is an employer of record in Indonesia?

An employer of record (EOR) in Indonesia is a local company that legally employs your staff on your behalf, so you can hire without your own Indonesian entity. The EOR signs the contract, pays salaries, BPJS and PPh 21, and handles HR compliance. You direct the work. (EOR adalah penyedia jasa yang menjadi pemberi kerja resmi bagi karyawan Anda.)

How Glints EOR works in Indonesia

Four steps from a signed offer to a first payslip. Exact timing depends on how fast documents come in.

Step 1

Tell us the role

Share the job title, salary, start date and whether the hire is permanent or project-based.

Day 1: scoping call

Step 2

We draft the contract

We prepare a compliant PKWT or PKWTT agreement and your hire signs with Glints as the employer.

Before the start date

Step 3

Onboard and register

We collect documents, register the employee for BPJS Kesehatan and BPJS Ketenagakerjaan and set up tax.

Around the start date

Step 4

Payroll runs monthly

We calculate pay, withhold PPh 21, remit contributions and send payslips. You approve each run.

Every pay cycle

What we handle for your Indonesian team

Everything the legal employer is responsible for, so your managers can focus on the work.

Contracts

PKWT and PKWTT agreements, plus changes, renewals and amendments.

Payroll

Monthly gross-to-net calculation, payslips and bank payments in rupiah.

BPJS contributions

Registration and monthly contributions to BPJS Kesehatan and BPJS Ketenagakerjaan.

Tax

PPh 21 withholding and the related reporting for each employee.

THR and benefits

THR (religious holiday allowance) calculated and paid on time, plus leave and optional private insurance.

Onboarding and offboarding

Document collection, handbook, resignation and termination steps including severance calculations.

Work permits for foreign hires

Foreign nationals need an RPTKA and a KITAS or equivalent permit. Talk to us about the route for your case.

EOR vs setting up a PT PMA in Indonesia

A PT PMA is the foreign-owned company Indonesian law requires if you want to employ people directly. Here is how the two paths compare.

What mattersEmployer of recordYour own entity
Time to first hireStart once the contract and onboarding documents are ready.Incorporation, licensing and tax registration come before your first hire.
Cost driversA service fee per employee on top of salary and statutory costs.Incorporation and capital requirements, licences, local finance and HR staff, accounting and legal support.
Compliance burdenThe EOR carries the employer obligations: BPJS, PPh 21, THR, labour filings.You own every employer obligation and its deadlines.
FlexibilityTest the market with a few hires, then scale up or exit.A long-term commitment that is slower to scale down.

Many companies start with an EOR and set up a PT PMA once the team and revenue justify it. We can transfer your team to your entity when you are ready.

How much does an EOR cost in Indonesia?

EOR pricing is usually a service fee per employee, charged on top of salary and the employer's statutory costs. We quote after scoping your hires, so the number fits your case.

What's included

  • Employment contract and HR documentation
  • Payroll, payslips and PPh 21 withholding
  • BPJS Kesehatan and Ketenagakerjaan administration
  • THR calculation and payment
  • Onboarding and offboarding support

What drives the price

  • Number of employees
  • Salary level and role
  • Contract type (PKWT or PKWTT)
  • Optional benefits such as private insurance
  • Work permit support for foreign hires

We share a clear quote after a short consult. See pricing.

Indonesia employment essentials

Last reviewed: November 2026

A short orientation, not legal advice. Rules change, so confirm details with us or local counsel before you hire.

Contract types

PKWTT is an open-ended contract. PKWT is fixed-term and is limited to certain kinds of work. Probation applies to PKWTT only and is commonly capped at three months.

Social security

Employers register staff with BPJS Kesehatan for health cover and BPJS Ketenagakerjaan for work-related and retirement protection.

THR

Employees are due a Tunjangan Hari Raya before their major religious holiday, in proportion to length of service.

Income tax

Employers withhold PPh 21 from salary each month and report it to the tax office.

Minimum wage

Minimum wages are set per province and region and reviewed every year. Check the current figure for the city where your hire will work.

Termination

Ending employment needs a valid reason and a process set by law. Severance depends on years of service and the reason for the exit.

Foreign nationals

Hiring a foreigner needs an RPTKA (manpower plan) and a work and stay permit such as a KITAS.

Official sources: BPJS KesehatanBPJS KetenagakerjaanMinistry of ManpowerDirectorate General of Taxes

Backed by real EOR projects

See how teams enter Southeast Asian markets with Glints EOR without opening a local entity.

Read customer stories

Employer of record in Indonesia: your questions

What is an employer of record in Indonesia?

An employer of record in Indonesia is a local company that becomes the legal employer of your staff. It signs the contract, runs payroll, pays BPJS and withholds PPh 21 on your behalf. You keep control of the daily work, so you can hire without setting up your own PT PMA.

Do I need a PT PMA to hire in Indonesia?

To employ people directly as a foreign-owned company, you need a PT PMA. If you would rather not set one up yet, an employer of record employs your team through its own local entity. That lets you start hiring sooner and decide later whether an entity makes sense.

EOR adalah apa, dan apa bedanya dengan outsourcing?

EOR adalah penyedia jasa yang menjadi pemberi kerja resmi bagi karyawan Anda, sementara Anda mengatur pekerjaannya. Outsourcing biasanya memindahkan pekerjaan atau tim ke vendor. Dengan EOR, karyawan tetap bekerja untuk Anda dan hanya administrasi ketenagakerjaannya yang dikelola EOR. Anda tetap memilih, mengarahkan, dan menilai kinerja tim sendiri.

How much does an EOR cost in Indonesia?

Pricing is typically a service fee per employee on top of salary and statutory employer costs such as BPJS. The final figure depends on headcount, salary, contract type and optional benefits. Book a consult and we will scope your hires and send a clear quote.

Who pays BPJS and PPh 21 under an EOR?

The EOR registers the employee, calculates BPJS Kesehatan and BPJS Ketenagakerjaan contributions and withholds PPh 21 each month. The cost of the employer's share is passed through to you with salary, so you see the full cost of each hire in one invoice.

Can an EOR hire foreign nationals in Indonesia?

Foreign nationals need an RPTKA and a work and stay permit such as a KITAS. Whether and how an EOR can sponsor depends on the role and the permit category. Tell us about the hire in a consult and we will confirm the route.

Can I move my team to my own entity later?

Yes. Many companies start with an EOR and set up a PT PMA once the team grows. We plan the transfer with you so contracts, BPJS and tax records move across without disrupting pay or benefits for your employees. You keep the same people, and we handle the paperwork on both sides.

Keep reading

Employer of record serviceEOR pricingCompare our servicesSoutheast Asia hubIndonesia employment lawIndonesia payroll and taxIndonesia compensation and benefitsIndonesia PEO and EOR services

Ready to hire in Indonesia?

Tell us the roles and start date. We will map the contract, payroll and BPJS setup and give you a clear quote.