Glints TalentHubLogin
Switch Language

PEO in Indonesia and Exploring Alternatives

Country Guide
Employer of Record (EOR)
Professional Employer Organization (PEO)

Employment Law

Payroll & Tax
Compensation & Benefits

Expand Your Business in Indonesia with the Right HR Solution

Expanding into Indonesia means handling labor regulations and HR complexities. Whether it’s payroll, onboarding, or compliance, choosing between a PEO and EOR is key. Glints TalentHub offers tailored PEO and EOR services to help your business grow in Indonesia.

What is a PEO (Professional Employer Organization)?

A PEO offers businesses a way to outsource HR functions, ensuring compliance with Indonesian regulations, while managing tasks like payroll and benefits. By working with a PEO, companies in Indonesia can optimize their HR operations without building an internal team.

Typically, a PEO covers the following:
Payroll processing and ensuring compliance with local taxes
Administration of employee benefits, including health insurance and allowances
Compliance with Indonesian labor laws and reporting requirements
Employee onboarding, contract management, and offboarding
HR support, including dispute resolution and advisory services
Benefits of using a PEO in Indonesia
Glints TalentHub’s PEO service ensures your HR operations are aligned with Indonesia's specific labor requirements.
Payroll services and dispute management
Local employment law guidance
Employee engagement and compensation analysis
24-hour response time to any issues
This service-led, human-touch support ensures smooth HR management, leaving you free to scale your business.
Challenges and limitations of PEOs in Indonesia
While a PEO provides substantial HR management support, there are challenges to consider:
Limited Legal Entity Support
A PEO helps manage HR, but it doesn’t offer legal entity setup or comprehensive legal liability coverage
Flexibility Constraints
PEO services are limited in flexibility when it comes to quick expansion or legal hiring needs, as they only support existing teams and operations
Lack of Direct Hiring Capabilities
PEOs focus on managing existing employees and payroll but do not provide end-to-end recruitment or entity hiring solutions
Simplify Expansion & Compliance with Glints EOR in Malaysia
Easily navigate payroll, compliance, and employee benefits with our comprehensive Employer of Record (EOR) service.
Our tailored solutions in Malaysia streamline all aspects of employment management, ensuring seamless operations for your business.
GET STARTED
Alternatives to PEO: Introduction to Employer of Record (EOR)

For businesses looking to expand into Indonesia without creating a legal entity, an EOR can provide a more comprehensive solution. An EOR acts as the legal employer on your behalf, managing compliance, employee contracts, and HR functions.

Why consider an EOR in Indonesia

An EOR can offer several advantages when entering the Indonesian market.

Full legal responsibility for employees and compliance with local laws
No need to set up a legal entity
Speedy hiring and employee onboarding

Full compliance with Indonesian labor laws, including severance and termination processes

Lower costs associated with entity formation and management
Deciding between PEO and EOR

Here’s how to choose the right solution for your business in Indonesia:

Choose a PEO if:

You already have a legal entity in Indonesia and need assistance with HR management

You need help with payroll, compliance, and employee benefits management

You want to streamline HR operations without the complexities of legal compliance

Choose an EOR if:

You don’t have a legal entity in Indonesia but need to hire employees quickly

You want a solution that handles all legal responsibilities, including employment contracts and compliance

You’re seeking a cost-effective way to expand into Indonesia without setting up a legal presence

How Glints TalentHub can help

Glints TalentHub provides tailored PEO and EOR services to help businesses grow in Indonesia. With our expertise in local labor laws, seamless HR solutions, and hands-on support, we make HR management efficient, allowing you to focus on expanding your operations.

PEO vs EOR in Indonesia

While a PEO helps with managing payroll and compliance, an EOR takes full legal responsibility for your workforce. Choosing between the two depends on your business’s expansion needs in Indonesia.


Interested in expanding into Indonesia? Book a session with our team to discover the best HR solution for your business.

Effortlessly Manage and Grow Your Southeast Asia Team