Employer of Record in Indonesia
Hire full-time remote employees anywhere in Indonesia without setting up a company. Emerhub becomes the legal employer, running compliant contracts, payroll, BPJS, and the mandatory THR, while you direct the work. From $49.99 per employee, per month.
Hire in Indonesia without opening a company
An employer of record is a licensed Indonesian company that employs your team on your behalf. Emerhub signs the employment contract, runs payroll, registers and pays BPJS Kesehatan and BPJS Ketenagakerjaan, pays the mandatory THR, withholds PPh 21 tax, and meets the rest of what Indonesia's Manpower Law asks of an employer. Your team works for you exactly as they would otherwise. What changes is whose name the authorities see as the employer.
It solves a specific problem. As a foreign company, you can't put someone on an Indonesian payroll without a local entity, and setting up a PT PMA runs into months of registration, foreign-ownership rules by sector, and a large capital commitment before you can make a single hire. An employer of record removes that step. Emerhub already holds the entity and the registrations, so you can have someone employed and working remotely for you in about a week, and set up your own PT PMA later if the team grows enough to justify it.
Employer of record vs. a PT PMA vs. contractors
Three ways to put a team on the ground in Indonesia, with different trade-offs in speed, risk, and cost. For most companies hiring their first few employees here, the employer of record is the one that gets people working fastest without taking on compliance exposure.
| Independent contractors | Your own entity | Emerhub EOR | |
|---|---|---|---|
| Setup time | Immediate, but exposed | Months: OSS, capital, foreign-ownership rules | About a week |
| Compliance risk | High: misclassification and missing BPJS carry penalties | Lower, once correctly run | Carried by Emerhub as the legal employer |
| HR & payroll | Handled by you, manually | Needs an in-house or outsourced local function | Fully managed, BPJS, THR, and tax included |
| Local presence | None | Full entity and operating structure | None required; you hire under ours |
| Upfront cost | Low, with hidden exposure | High: capital commitment, licensing, HR setup | A flat monthly fee per employee |
| Best for | Genuinely independent, short projects | Large or permanent teams at scale | Hiring full-time staff now, entity later |
What our Indonesia employer of record service covers
The split is clean: Emerhub takes every legal employment obligation, and you keep everything that makes the role yours. Indonesia's mandatory employer contributions (BPJS Kesehatan and the four BPJS Ketenagakerjaan programs) add around 10 to 13% on top of salary, plus the THR, the religious-holiday allowance that works like a statutory 13th month. The compliance side is the side we own.
Emerhub handles
- Compliant employment contracts under the Manpower Law
- Payroll processing, at or above the regional minimum wage
- BPJS Kesehatan, the health program, employer and employee shares
- BPJS Ketenagakerjaan: JHT, JKK, JKM, and JP
- THR, the mandatory annual religious-holiday allowance
- PPh 21 tax withholding and the monthly filings
- Severance under PP 35/2021, onboarding, offboarding, and reporting
You keep
- The role, its scope, and who you hire
- Compensation decisions, including any bonus on top of THR
- Performance standards and reviews
- Day-to-day supervision and priorities
- Working hours and arrangements
- Team culture and direction
From first call to first payslip
When you already have the person, onboarding runs in about a week. When you need us to find them too, recruitment adds a couple of weeks at the front.
Initial consultationDay one
We map your hiring need: the role, the salary against local benchmarks, the start date, and whether you have a candidate or want us to source one. This is also where we flag anything in the role that Indonesian labor law treats differently than you might expect.
Contracts and onboardingAbout a week
We draft a compliant Manpower Law contract, register the employee with BPJS Kesehatan and Ketenagakerjaan, and onboard them under Emerhub as the legal employer. Your team member starts work for you while the paperwork sits correctly with us.
Payroll and benefitsEach cycle
We run payroll on schedule, remit the BPJS contributions, withhold PPh 21, and pay the THR when it falls due before the religious holiday. Your employee is paid accurately and on time, every cycle.
Tax filing and ongoing supportContinuous
We handle the tax filings and the statutory remittances on their deadlines, keep you current as rules and regional minimum wages change, and stay reachable for both you and your employee. If the team grows into its own PT PMA, we set that up and move everyone across.
What an employer of record in Indonesia costs
Our pricing is simple: 10% of the total monthly cost to employ someone, their salary plus the BPJS contributions and the prorated THR, with a floor of $49.99 and a ceiling of $250. Charging a percentage keeps it fair on smaller roles, and the cap keeps it predictable on senior ones, so a higher salary never turns into a runaway fee. Set a salary below to see the fee and the all-in monthly cost.
For estimate purposes only. Figures shift with exchange rates and current statutory rates, so talk to our team for an exact quote.
The calculator estimates statutory employer costs on 2026 Indonesian rates (BPJS Kesehatan, BPJS Ketenagakerjaan, and the annual THR accrued monthly) with the BPJS Kesehatan and JP bases capped at IDR 12M and IDR 11.09M respectively, at roughly Rp 16,800 to the dollar; we confirm exact figures on a quote. Salary and statutory costs are billed alongside the fee and passed through transparently, with no setup fee and no entity to register. It's the most affordable EOR pricing in the market.
Ready to hire in Indonesia?
Send us the role and the target salary, and we'll come back with the exact monthly cost and how soon we can have someone working for you.
Why companies pick Emerhub as their Indonesia EOR
In-house, in-country
We employ, pay, and support your team with our own Jakarta staff, not a chain of third-party subcontractors. When something needs sorting with BPJS or the tax office, it's our people doing it.
Indonesia is where we started
Emerhub has operated in Indonesia since 2011. The local compliance knowledge here is deep and first-hand, not borrowed from a head office in another country.
Onboard in about a week
Where a new PT PMA takes months, your first hire under our EOR can be working in about a week, with BPJS registered behind them.
Hire anywhere in the country
From Jakarta to Surabaya to Bali, we employ remote staff across every province and apply the correct regional minimum wage for each location.
A clear path to your own PT PMA
When the team grows enough to justify a local company, we set the PT PMA up and transfer your employees across, so the EOR is a bridge, not a dead end.
Predictable, competitive cost
A flat per-employee fee, 10% of the cost to employ and capped at $250, that stays well below the global platforms, with the statutory costs passed through transparently.
Indonesia EOR FAQs
The questions companies ask before hiring through an employer of record in Indonesia.
How much does an employer of record cost in Indonesia?
The fee is 10% of the total monthly cost to employ someone, their salary plus the BPJS contributions and the THR, starting at $49.99 per employee and capped at $250 no matter how senior the hire. For many Indonesian salaries the fee sits near the floor, and the cap keeps it predictable for senior roles. The salary and statutory costs are billed alongside it and passed through transparently. There is no setup fee and no capital to put down, which is what makes an EOR far cheaper than registering a PT PMA for a small team.
How long does it take to onboard employees in Indonesia?
When you already have your candidate, onboarding through our EOR takes about a week: contract, BPJS registration, and start. When you also want us to find the person, recruitment adds roughly two weeks at the front. Either way it is far faster than the months a PT PMA needs before it can legally employ anyone.
Is an EOR cheaper than setting up a PT PMA?
For a small team, almost always. An employer of record means no OSS registration, no large capital commitment, no local HR or payroll function to build, and no ongoing entity compliance, just a per-employee monthly fee. A PT PMA becomes the better economic choice once the team is large enough that the fixed costs of running a company are spread thin, and at that point we can set it up and move your people into it.
What does your Indonesia EOR service cover?
Everything on the legal employment side: a compliant contract under the Manpower Law, payroll at or above the regional minimum wage, BPJS Kesehatan and the four BPJS Ketenagakerjaan programs, the mandatory THR, PPh 21 tax withholding, and severance under PP 35/2021, plus onboarding, offboarding, and reporting. You keep the role, the pay decisions, the performance management, and the day-to-day direction.
Is THR mandatory in Indonesia?
Yes. THR (Tunjangan Hari Raya) is a statutory religious-holiday allowance, equivalent to one month's salary for employees with a year or more of service and pro-rated below that, paid before the relevant religious holiday each year. We accrue it monthly in payroll so it never lands as a surprise, then run the payment and the filings around it.
Can I hire remote employees in cities across Indonesia?
Yes. We employ staff under our EOR anywhere in Indonesia, from Jakarta and Bandung to Surabaya, Yogyakarta, Bali, and beyond. We apply the correct regional minimum wage (UMP / UMK) for each location, and the BPJS, THR, and PPh 21 obligations are the same nationally, so the model works the same wherever the person lives.
How is an EOR different from hiring a contractor in Indonesia?
Contractors are paid for outputs and carry their own taxes; employees are paid for time, with the employer covering BPJS, the THR, PPh 21 withholding, and statutory benefits. The line is policed under the Manpower Law, and calling someone a contractor doesn't hold up when the working pattern looks like employment. EOR puts the relationship on the right side of that line from day one.
Do I have to commit to a long contract?
No. The engagement runs month to month per employee. If a hire ends or a project finishes, we handle the offboarding and the EOR fee stops; if the team grows into its own PT PMA, we set up the company and transition everyone across without you paying for parallel infrastructure.
Talk to our Jakarta team
A free, no-obligation call: thirty minutes with our Jakarta team to scope the role, model the cost on real numbers, and map a realistic start date for your first hire.
RT.7/RW.2, Kuningan
Jakarta 12950, Indonesia