The employment contract
Bilingual contract that holds up under Indonesian law, written for the role you are hiring. Permanent or fixed term, whichever fits, with the notice and probation rules applied correctly.
Employer of Record for Indonesia
Hire in Indonesia without opening a company in Indonesia.
Satrio Consulting employs your Indonesian team members on our own payroll. You choose who to hire and manage the work. We handle the contract, BPJS, PPh 21 withholding, THR, and the monthly payroll run, and send you one invoice with every statutory cost itemised.
We reply within one working day. Support hours Monday to Friday, 09.00 to 18.00 WIB (02.00 to 11.00 UTC). No entity setup, no minimum headcount, no annual commitment.
Your monthly cost, in plain sight
- Gross salary
- You set it. We do not add a markup to it.
- Employer statutory contributions
- Itemised on the invoice: BPJS Kesehatan 4%, JHT 3.7%, JP 2%, JKK, JKM, and THR accrued at 1/12.
- Our fee
- One monthly fee per employee, covering the contract, compliance, payroll and the platform.
Estimate the employer cost for a salary before you talk to us.
You are not the legal employer. We are. Your team member works for you, full time, on an Indonesian contract.
- You keep day to day control: priorities, tools, standards, and performance.
- We carry the employment relationship, the statutory benefits and the filings.
- Your company never appears on the Indonesian payroll or tax filings.
- One agreement between our two companies, plus one employment contract per person.
This is what Employer of Record means in practice.
What we handle every month.
Social insurance registration
BPJS Kesehatan and BPJS Ketenagakerjaan (JHT, JP, JKK, JKM). We register the employee, pay the employer share, and show it as a separate line on your invoice instead of hiding it in a markup.
Monthly payroll in IDR
Salary paid to the employee's Indonesian bank account, payslip issued with the calculation basis on every line, and a payroll register you can reconcile against your own books.
Income tax withholding and reporting
PPh 21 withheld monthly using the TER tables, reported monthly and reconciled in December. You receive the figures, not the filing obligation.
THR, the statutory holiday bonus
One month of salary per year, required for every employee. We accrue it monthly so the payout in the holiday month never arrives as a surprise.
Leave, overtime and records
Statutory leave, overtime limits and attendance kept in a system that can produce evidence if a claim is ever raised. Records are yours to export.
Onboarding and offboarding
Contracts, registrations, and the end-of-contract compensation that Indonesian law requires for fixed-term hires. We quote the exit cost before you sign anyone.
A named contact who answers in English
A person on our payroll team, not a ticket queue. Response times are published on our service standards page and written into your agreement.
What it costs, before you ask.
Salary plus statutory contributions plus our fee. The statutory part is set by Indonesian law, not by us, and it is the part most providers fold into a single rate so you cannot see it.
| Employer contribution | Rate | Note |
|---|---|---|
| BPJS Kesehatan (health) | 4% | Wage floor is the local minimum wage, ceiling Rp12,000,000 |
| JHT (old-age savings) | 3.7% | On the full wage |
| JP (pension) | 2% | Capped; the cap changes every March |
| JKK (work accident) | 0.24% to 1.74% | Set by the risk class of your business |
| JKM (death benefit) | 0.3% | Flat |
| THR (holiday bonus) | 1/12 of salary per month | One month per year, accrued monthly |
A monthly fee for our service is added on top and quoted per employee. No entity setup cost, no minimum headcount, no annual lock-in.
Estimate the employer cost for a salary · See how pricing works
From decision to first payslip.
A target timeline, assuming the candidate and the documents are ready. You get the full cost picture at step two, before anyone signs.
- Day 0
You brief us
Role, gross salary, start date, and whether the hire is permanent or fixed term. If you have not found the person yet, we can recruit through KerjaBoard.
- Day 1
You get a costed quote
Salary, employer statutory contributions, our monthly fee, and the exit cost for the contract type you chose. No open-ended estimates.
- Day 2 to 4
Contract and registration
The employee signs a bilingual contract, we register them with BPJS and the tax office, and we confirm the first pay date.
- Day 5 to 10
First payroll cycle
Payslip, payroll register, and one invoice covering salary, contributions and our fee. From then on it repeats every month.
Three ways to employ someone in Indonesia.
| Criterion | Employer of Record | Your own Indonesian entity | Independent contractors |
|---|---|---|---|
| Time to first hire | Days, once the candidate and salary are agreed | Weeks to months of incorporation and licensing | Days |
| Setup cost | None | Incorporation, minimum capital, registered address, local directors, ongoing accounting | None |
| Who is the legal employer | Satrio Consulting, in Indonesia | Your own Indonesian company | Nobody, which is the risk |
| Payroll, tax and social insurance filing | Us | Your local finance and tax team | The contractor files their own, often incorrectly |
| Statutory benefits and THR | Paid and accrued by us | Yours to administer | Usually missing, which is evidence of misclassification |
| Exiting the relationship | We run the statutory process and tell you the cost up front | Your local entity runs it | Ending a contract is easy until a labour authority disagrees |
| Best when | You need one to fifty people, fast, without becoming an Indonesian company | Indonesia is a core market and you want your own brand on the contract | Rarely, and only for genuinely independent work |
The third column is the one that costs people money. If someone works your hours, on your tools, under your direction, and only for you, Indonesian labour authorities treat that as employment, whatever the contract is called.
The rules you no longer have to learn.
Indonesian employment law is not unusually hostile, but it is specific, and the details change every year. These are the instruments that decide what your team member is owed and what has to be filed.
This is general information, not legal advice. Your employment contract and services agreement govern your case, and our tax and legal advisors review both.
- UU 6/2023 and PP 35/2021
Contracts, probation (permanent contracts only, up to three months), fixed-term limits, working hours and overtime rates. - PP 58/2023 and PMK 168/2023
Monthly PPh 21 withholding using the effective average rate tables, with an annual recalculation in December. - Permenaker 6/2016
THR: one month of salary per year, pro rated for shorter service. Mandatory, not a discretionary bonus. - BPJS regulations
Mandatory health and social insurance, with contribution caps that change every year and a wage ceiling that moves each March. - UU 27/2022 (PDP)
Personal data protection: what we may store, where it lives, and how it is deleted. - Provincial and city minimum wage
A statutory floor per region, revised annually. We check it against the salary you offer before the contract is issued.
Who we do this for.
Remote-first software teams
Engineers, QA and designers who work with your team daily and need a real employment contract, not an invoice from a freelancer.
Agencies and studios
Support, design and production people you add per project, without opening an entity for a handful of hires.
Companies adding one or two specialists
A country manager, a bookkeeper, a data analyst. One person is enough to start; there is no minimum headcount.
Teams that started with contractors
If someone works your hours on your tools under your direction, they are an employee in substance. We convert the arrangement and remove the exposure.
Confidentiality and data, handled properly.
Your team member's personal data is stored in Indonesia on infrastructure we control, under UU 27/2022 (PDP). Access is limited to the payroll team that runs your account. A data processing agreement and a confidentiality agreement are available before you share anything sensitive.
Intellectual property assignment and confidentiality sit in the employment contract, so the work your team member produces belongs to you, not to us.
- Employee data stored in Indonesia, exportable by you at any time
- NDA, IP assignment and data processing agreement available up front
- Access limited to the named people running your payroll
- Payroll figures you can reconcile, down to the calculation basis on each payslip line
- Rules versioned by effective date, so a calculation can always be reproduced later
Start with one person.
There is no minimum headcount and no setup fee. Tell us the role and the salary you have in mind, and we come back with the full monthly cost and the exit cost for the contract type.
- One employee is enough
- Monthly, cancel any time
- Costed quote before anyone signs
- Reply within one working day
Questions we get from overseas employers.
If your question is not here, ask it directly. We answer in English, in your timezone window, and we will tell you when something is not a good fit.
Do we need a company or a bank account in Indonesia?
No. Satrio Consulting is the employer of record and the entity on the contract. You do not incorporate, do not open a local bank account, and do not file Indonesian payroll or tax returns.
How quickly can someone start?
Typically five to ten business days from the moment the candidate and the salary are agreed, assuming the identity documents are in order. The contract and the social insurance registration are the two steps that take the time.
Who is the legal employer, and who manages the work?
Satrio Consulting is the legal employer. You direct the work: priorities, tools, standards and hours within Indonesian working-time limits. We handle everything that touches employment law, payroll and tax.
Can we choose the person ourselves?
Yes. Most clients interview and choose their own candidate. If you need help finding someone, recruitment is available through KerjaBoard, our hiring platform.
What exactly are we billed for?
Three things: the employee's gross salary, the statutory employer contributions, and our monthly fee per employee. The employer contributions are itemised on the invoice rather than folded into a markup. Our cost estimator shows the first two.
Which currency do we pay in?
The billing currency is agreed in the services agreement. Salaries are always paid in Indonesian rupiah to a local bank account, which is what Indonesian law requires.
What happens if the hire does not work out?
Termination in Indonesia is a process, not an email. For fixed-term contracts there is a statutory end-of-contract compensation; for permanent contracts we follow the procedure required by UU 6/2023, usually by agreement. We tell you the cost of exiting before you sign, so it is never a surprise.
Do you handle work permits?
Not for this service: the employer of record setup is for Indonesian nationals, who need no work permit. Hiring a foreign national in Indonesia requires a work permit and a different structure, and we will tell you honestly if that is the better route.
Who owns the work product and the intellectual property?
You do. The employment contract includes an assignment of intellectual property and a confidentiality obligation, and your services agreement carries the same terms between our two companies.
Where does employee data live?
In Indonesia, on infrastructure we control, handled under UU 27/2022 (PDP). Access is limited to the people who run your payroll, and a data processing agreement is available on request.
What if we already have contractors in Indonesia?
We review the arrangement and convert it to employment where the facts say employee: fixed hours, your tools, your direction, one client. That removes the misclassification exposure and gives the person statutory benefits.
Your next hire in Indonesia can start next week.
Send us the role and the salary. You get a costed quote, a contract draft, and an honest answer on the employment structure that fits.
WhatsApp +62 889-8998-7444. Support hours Monday to Friday, 09.00 to 18.00 WIB (02.00 to 11.00 UTC). Payroll rules current as of version 2026-03-01.