the Best EOR Service Provider in Indonesia 2024

EOR Service in Indonesia is quite popular with people who want to open a company in Indonesia. Setting up and managing a business in Indonesia has several challenges that are different from those in your home country.

By using EOR Service as an International Staffing Solution you can reduce the administrative burden, because you entrust it to those who understand local culture. As well as risk mitigation, because EOR companies in Indonesia have good enough networking so they understand the regulations properly.

Before discussing the Best Service for EOR in Indonesia.

What is an Employer of Record Service?

If Citing an Article Abhitech, An Employer of Record (EoR) is a service provider that takes on the responsibility of being the legal employer for your employees in a foreign country, in this case, Indonesia.

This means they handle payroll, benefits, tax compliance, and HR-related matters on your behalf. EoRs allow you to have a local workforce and establish a legal entity without the complexities and risks associated with direct employment.

This is also similar to According to adp.com An employer of record is a third-party provider that is legally responsible for another organization’s employees. It can be located within the same country as the business it employs workers for or in another country with different employment laws.

And also OyesterHR An employer of record (EOR) is an entity that legally employs workers on behalf of another business. An EOR takes full responsibility for all aspects of employment including compliance, payroll, taxes, and benefits. 

In essence, EOR Service will help you manage global hiring, payroll taxes, compliance risks, and so on in Indonesia.

What Does an Employer of Record (EOR) Do?

Payroll and Benefits Management: An EoR service will help you with all aspects of payroll, ensuring your talent gets paid appropriately and on time. They will also provide benefits, such as health insurance, training costs, and so on according to the contract.

Tax Compliance: No need to be confused about taxes anymore. EoR Service will help you take care of all taxes according to country regulations. Starting from payments, deductions, to returns if you. So your company will be safe from “Directorate General of Tax” or Indonesian Tax Authority.

Legal Compliance: The business you just opened in Indonesia will be ensured to comply with applicable labor laws and labor regulations.

This includes creating and managing work contracts, processing work permits, and formalities such as visa requirements. By using EoR, your company does not need to worry about legal compliance because EoR will take care of all these aspects.

HR Support: Providing human resources (HR) services which include the recruitment process, new employee orientation (onboarding), and employee relations management. This means EoR will help in finding and recruiting the right talent, ensuring new employees get a good introduction to the company, as well as managing the relationship between the company and employees to maintain a harmonious and productive work environment.

You can read more complete information here.

How to Choose the Best EOR Service in Indonesia

Open Business, Hire Global Workforce Management, Payroll with Abhitech

Image: Freepik

we saw from several websites such as Playroll, Velocity Global, Just Works Lots of things that must be considered when looking for the Best EOR Service but that is in an international context. 

Therefore we have adapted several sections for you foreign companies who want to open a company in Indonesia.

  1. Local ExpertiseAll the references you read on the Internet will suggest that EOR Service has global capabilities. However, you yourself know that the reason for using EOR Service is to help your company at the local stage.It would be better if you collaborate with EOR Service in Indonesia which has expertise in Indonesia itself.EOR with global expertise is a generalist, but EOR with local expertise is a specialist. 

    According to Emeritus Those who specialize: Expertise in Area of Specialization: As mentioned above, specialists focus on any domain, and subject-specific expertise gaps are more difficult to fill.

  2. Track Record

    Make sure your EoR Partner has good work experience. Choose a partner for EoR with a good track record and proven experience working with various companies.

    In fact, by reading this article you will understand the importance of a track record.

  3. Service Responsiveness

    Currently, many services use artificial intelligence to respond to their customers. According to the website CXlead.com There are at least 32 best AI Chatbots for customer service.

    Indeed, using artificial intelligence to respond to customers can help because it is much faster. But not for those of you who have specific questions.

    It would be more helpful if you worked with a company that uses chatbots for general questions but still has contacts you can contact for more specific questions.

  4. Range of Services

    Working with a vendor will make things easier for you. However, working with many vendors can actually be confusing. We recommend looking for a partner who has a wide range of services so that when your business grows they can still help you.

  5. Compliance Expertise

    This is still related to the track record, the reasons why choosing a local partner is better. They definitely understand more about compliance in Indonesia, even if you are looking for specific cities such as EoR for companies in Jakarta, EoR for companies in Bali, and EoR for companies in Batam

    Those who control the local area will understand the area’s compliance much better and have good networking so they can work more efficiently.

  6. Technology Integration

    Even though we recommend working with those who have real support, not just AI or chatbots for customer service, we also recommend that you work with partners who have integrated HR technology because that will make it easier for you to work.

  7. Data Security and Privacy Compliance

    Make sure they can take good care of your data. Is your employee data safe? It is important not to violate the enactment of Law No. 27 of 2022 concerning Personal Data Protection (“PDP Law”) which is similar to the General Data Protection Regulation (GDPR).

  8. Cost Structure and Transparency

    Don’t be fooled by cheap prices. Because many services are naughty, offering cheap prices but not being transparent. So, when the project is running they will ask for an additional fee for the same service, in the end you end up paying more than you should.

Reviews of the Best Employer of Record Services in Indonesia

So, which is the best EOR Service in Indonesia for International Employment Outsourcing?

  1. Abhitech

    If you are looking for an EoR Service that meets local needs then Abhitech is the answer. 

    More than 30 years of experience in the Indonesian HR industry. Yes, 30 years.

    From this experience, it is clear that Abhitech really understands regulations in Indonesia, recruiting the best employees who suit your company, Managing the Global Workforce, including payroll, benefits, administration, etc

    EoR service in Indonesia process with Abhitech
    source: Abhitech

  2. Oyster HR
    Global Employment Need with Oyster HR

    image: Oyester HR

    Oyster HR is an Employer of Record service for managing HR processes in 180+ Countries including Indonesia. 

    They have the claim “Hire based on talent, not location”. This can help you to hire global talent, pay global talent, and keep them by providing the right benefits.

  3. Deel
    Hire Global Talent in a minutes with Deel
    Image: Deel

    Deel is one of the largest Employer of Record service companies and can help you on a global scale.
    Getting 4,000+ reviews from the site Trust Pilot proves that Deels is suitable to help you on a global scale.Websites like People Managing People “Deel Best EOR service for managing global hiring, payroll taxes, and compliance risks”

Conclusion

You can choose to work with anyone as an EoR Service partner on a global stage. However, if you need those who have local understanding in Indonesia then Abhitech is most suitable to help you.

If you want to ask Abhitech for more details, you can contact Abhitech here

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