Hiring talents in Indonesia without opening a local office sounds ideal for foreign companies.
However, with Indonesia’s labor laws having the complexity of compliance and documentation, foreign companies absolutely cannot work on their own.
Employer of Record Indonesia, like Abhitech, come with a practical solution that can handle most of the essential compliance to reduce your administrative burden.
With the help of EOR, companies will be facilitated even more to quickly access local talents while staying compliant with local labor laws.
Here’s What You Gain by Using an Employer of Record in Indonesia
Many foreign companies are passionate about expanding their branch to Indonesia but feeling at a loss dealing with its complex setup requirements.
EOR solves all these hassles by being your representative in Indonesia and handling the entire documentation responsibility. Here’s how they can make your hiring process simpler.
1. Hire Legally Without Setting Up a Company (No PT PMA Needed)
Hiring Indonesian employees with EOR, foreign companies do not need to process PT PMA or a foreign-owned entity.
It means that companies can operate in the local market without the legal complexities of company registration.
2. Save Months of Setup Time and Administrative Hassle
Establishing a business entity in Indonesia can take a months-long process with administrative hassle.
But, using the Employer of Record Indonesia service, you can skip all the process and your team can start working in the shortest possible time, not months.
3. Full Compliance with Indonesian Labor Law, BPJS, and Payroll
EOR ensures the hiring process is done under employment contracts that meet Indonesian labor laws. They also handle important aspects, like BPJS, payroll, and taxes.
4. Local HR Support while You Stay Focused on Growth
EOR also provides regional HR support that allows you to focus more on your business objectives without being preoccupied with day-to-day HR admin work.
5. Scale Fast—Add or Remove Headcount Anytime
Foreign companies don’t need to worry about long-term commitments or termination procedures as EOR provides flexibility, allowing companies to scale up or down easily.
Pain Points Foreign Companies Face Without an EOR
Without the support of Employer of Record Indonesia, growing your businesses in this country can become overwhelming. Companies may encounter significant difficulties that include things like:
1. Bureaucratic Setup Process and Legal Uncertainty
Foreign companies will face some complications while setting up their business, such as handling the complex bureaucratic process and its legal uncertainties.
2. Complex Employment Laws and Contract Structures
Indonesia has intricate employment contracts that most foreign companies often struggle with drafting contracts to meet all the local obligations.
3. Tax Filing, Payroll Setup, BPJS—Where to Start?
Many foreign companies are unfamiliar with managing tax filing, payroll setup, and BPJS within the Indonesian system. It can be overwhelming, and sometimes they are confused about where to start.
4. Hiring Remote or Hybrid Staff? Things Get Trickier
Hiring remote and hybrid staff can add additional challenges since it requires companies to operate with international and local labor regulations.
5. Delayed Time-to-Hire Hurts Your Business Momentum
The long process of establishing your local business entity can extremely delay your chance to compete in this competitive market, and ultimately disrupt your business growth.
How Does Abhitech’s EOR Service Work?
Finding the best partner for your business expansion to Indonesia can be a demanding task.
Abhitech understands the challenges and so provides you with Employer of Record Indonesia service to support your business every step of the way:
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We Become the Legal Employer—You Keep Full Control
Abhitech is here to act as the official employer on paper to ensure legal compliance with Indonesian law. Partnering with Abhitech means you won’t lose complete control over your employees’ responsibilities and performance management.
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We Handle Contracts, Payroll, BPJS, and Local Tax Reporting
From handling employment contracts, payroll, and local tax reporting, we take care of all the administrative obligations to remove the complexity of navigating the Indonesian labor system.
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Dedicated Support Team Based in Indonesia
Abhitech regional HR team is available to support your companies in real time. Our service exists to provide local insight, faster problem resolution, along with smooth communication.
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Compliant, Flexible, and Risk-Free
Abhitech’s EOR service is also designed to keep you fully compliant with local regulation to reduce legal risk while giving the flexibility to scale your team up to stay ahead in this competitive market.
Is EOR Better Than Setting Up a Company in Indonesia?
Whether you have heard about Employer of Record (EOR) or Professional Employer Organization (PEO), both models have the potential to help companies hire and manage employees in foreign countries.
But, while they share some similarities, EOR can be a better choice for businesses expanding in Indonesia. This is what makes it the best one for your company.
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Time, Cost, and Legal Comparison
As you may know, setting up businesses in Indonesia can take several months, but using EOR can simplify the whole process in a short time.
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When it Makes Sense to Use EOR First
EOR has the flexibility to allow you to build a company without being permanently locked in the local infrastructure. It is totally an ideal choice, particularly for companies who want to reduce risk before making long-term commitment.
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Still Planning a Legal Entity? Use EOR to Start While You Wait
If you are still planning to establish a legal entity, EOR can help you to start right away. You can build local business momentum while your local business entity is still in progress.
Let Abhitech Handle Your Hiring in Indonesia
Using Employer of Record Indonesia means less risk, less paperwork, and faster execution. It’s a smart strategy for foreign companies seeking opportunities in this diverse land without the need to establish local entities.
In the competitive and fast-moving market, having this kind of agility can make the difference. With Abhitech’s EOR service, companies can start operations in Indonesia immediately, all with full compliance and zero friction.
Our service helps you to stay flexible in adapting to the new market as your business evolves. Ready to get started? Let’s connect with us now and find the best solution for your company! Also, don’t miss the chance to get the newest update on our insightful resources here!
