Indonesia,
made easy

Whether you should hire freelancers or employees in Indonesia is a decision that is deeply personal to the strategy of your business.

Not just in Indonesia, but anywhere, hiring an employee comes with far fewer risks related to employee misclassification, IP loss, or the employee taking on too much work and letting your tasks slide.

Hiring employees in Indonesia compliantly is not out of your grasp, even if you don’t have or don’t want an established entity in the country. Contact us for a free consultation and we can go over your options for hiring in Indonesia.

Yes, it is possible to hire foreigners in Indonesia. The best city to target for hiring foreigners in Indonesia is Jakarta.

Branch offices in Indonesia are typically not permitted.

Companies that want to have a physical presence in Indonesia can choose one of the following options:

• Open a representative office (RO)
• Open a fully-owned foreign enterprise (a
• Limited Liability Company, or LLC)
• Open a joint venture (JV)

The most common of these is opening an LLC . To open an LLC in Indonesia, the following requirements must be met:

• Prepare and notarize the Articles of Association by drafting in Indonesian language;
• Provide all relevant information about the owners of the company, including their names, addresses, and nationalities
• Appoint the board of directors. At least one board member should be an Indonesia national;
• Name a commissioner for the company. The commissioner can be any nationality
  Notarize the owners’ signatures and submit them to the Companies Registrar;
• Pay the registration fee. Be sure to keep the receipt and include it with the registrtion documents
• Register for VAT and other tax purposes. Receive the business registration number upon successful registration
• Give all relevant notarized documents to the Ministry of Law and Human Rights.

After all above requirements are met, and the Indonesia LLC exists, it must register with the Ministry of Manpower and apply for all licenses and permits specific to the indusry of the LLC. These permits vary from industry to industry, and so does the price. Once the employment registration is complete the LLC is ready to begin legally operating

Note that the Indonesia company commissioner is a required appointment that comes withs several legal responsibilities, including supervising the company, providing analysis, annual reports, and approving any budget plans passed by the board of directors.

Please also note that, like any LLC, there must be an in-country company director to oversee company operations. This is a mandatory requirement, and can be either an Indonesian national or a foreigner.

The cost of opening an LLC in Indonesia vary with an abosolute minimum of USD $7,000 in fees. Opening and LLC in Indonesia requires local knowledge and a minimum of 10 weeks with a local partner.

There are usually two options for hiring employees in Indonesia.

Option 1: Open a subsidiary

The above process outlines what it takes to open a subsidiary. Companies choosing this option should be working with experienced Indonesian partners on the ground to mitigate the risks involved and increase the changes of a return on investment.

Option 2: Hire through a partner such as an EOR like Horizons

This option is by far the best option for companies looking to get started in Indonesia as soon as possible. The speed, ease to end the engagement, and affordable price make it a clear option for small or large companies who want to try the Indonesian market or scale up their Indonesian team incrementally. Contact us and get started in less than 24h.