Employer of Record (EOR) Service in Indonesia

As a trusted EOR service provider in the APAC region, Cake makes it easy to expand into Indonesia while ensuring full compliance with local labor laws and employment regulations. We manage payroll, employee tax reporting, and benefits administration so that you can focus on growing your business. Our local recruitment experts also assist with work permits and company setup, providing comprehensive support for every step of your hiring journey. Trust Cake to handle the administrative and legal complexities, making your transition to the Indonesian market smooth and efficient.

Talk to Our Consultants

How Can Our Employer of Record Service Help Your Business?

Talent Recruitment Contract Service

We manage formal employment contracts for your overseas hires, enabling legal recruitment for both full-time and short-term roles.

HR Consulting Service

Our HR experts ensure your employees get legal work permits and proper protection, helping reduce turnover and maintain compliance.

Learn more about our recruitment consulting →

Compliance Management

We manage payroll, tax calculations, and benefit registration for your overseas employees to ensuring everything runs in line with Indonesian regulations.

Office Location Assistance

We help you find office space in Indonesia and provide key workplace information to support smooth operations from day one.

Offboarding & Termination Support

We assist with termination and severance processes, helping you manage employee exits compliantly and with minimal disruption.

Why choose Cake's EOR service?

Access Indonesia's Top Talent

Tap into our expansive local network that connects you with a diverse pool of skilled candidates. From junior to executive roles, build the team you need to drive your business forward.

Expert HR & Market Consulting

Rely on our tailored HR solutions and market insights to guide every step, empowering you with the right data and expertise for confident recruitment and seamless onboarding.

Local Expertise

Our HR experts deliver deep local insights and strategic market guidance that accelerates your expansion and simplifies your transition into the Indonesian workforce.

Why Hire in Indonesia?

Southeast Asia’s Talent Powerhouse

Indonesia is home to the world’s 4th largest population with a median age of just 30 – giving you access to a dynamic, tech-savvy workforce. The country is fast becoming a talent hotspot in fields like software development, digital marketing, and finance.

Global-Minded Talent, Cost-Effective Hiring

Labor costs are significantly lower than in Western markets, while many Indonesian professionals bring international experience—having studied or worked in countries like Australia, the U.S., and the UK. That means you get quality talent without the high overhead.

A Strategic Base for Southeast Asia

Cities like Jakarta, Bandung, and Surabaya offer a cost-effective, talent-rich alternative to Singapore or Hong Kong for setting up regional HQs or shared service centers. Build your APAC presence with flexibility and scale.

Show Me How to Expand

Understanding Indonesia's Labor Laws

A Guide for Employers

Navigating a new market starts with knowing the rules. In Indonesia, the latest employment regulations are outlined in the 2023 Omnibus Law on Job Creation, officially the Act No. 6 of 2023 on the Enaction of Government Regulation in Lieu of Act No. 2 of 2022 on Job Creation into Act. Here’s the summary so you can hire with confidence and grow without setbacks:

Employment Contracts

Employers in Indonesia can use permanent (PKWTT) or fixed-term (PKWT) contracts. Fixed-term agreements must be written (in Bahasa Indonesia), clearly stating job roles, salary, benefits, and contract duration.

Working Hours

Standard working hours are 40 per week (either 7 hours/day for six days or 8 hours/day for five days) with at least one rest day. Overtime is allowed for up to 4 hours daily or 18 hours weekly and must be paid at 1.5 to 2 times the regular rate, except for exempted roles.

Minimum Wage and National Insurance

Minimum wages in Indonesia differ by province and sector and are updated each year to reflect inflation. Additionally, companies must enroll employees in two national benefit programs: • BPJS Employment: Covers work accident, death, and retirement benefits with shared contributions. • BPJS Health: Provides basic health coverage with employer and employee contributions.

Leave and Holiday Benefits

Employees are entitled to 12 days of paid annual leave after one year and must observe public holidays, with work on holidays earning premium pay. Sick leave is available on a sliding scale, and maternity leave is set at 3 months of full pay (with extension options under special conditions).

Foreign Workers and Anti-Discrimination

For hiring foreign nationals, employers need a Foreign Worker Utilization Plan (RPTKA) and must secure proper work permits/visas. Indonesian law prohibits discrimination on grounds such as race, gender, and religion.

Termination Procedures and Severance

Termination requires valid grounds (e.g., misconduct, bankruptcy) and prohibits discrimination (e.g., pregnancy). Severance pay ranges from 1–9 months’ salary, based on tenure, plus compensation for unused leave. Employers must give 14–30 days’ notice and resolve disputes via government mediation or labor courts. Fixed-term contracts ending naturally require proportional compensation.

Help Me Understand the Rules