Home Blog Understanding PEO Outsourcing Services in Indonesia Finance | Human Resource | Indonesia | Payroll | Recruitment | Tax Reporting Understanding PEO Outsourcing Services in Indonesia InCorp Editorial Team 24 October 2017 4 minutes reading time Table of Contents Thinking of setting up a business in Indonesia? You know it requires business permits and licenses. You need to work on other core functions such as recruitment, human resource, payroll, and tax accounting. Here we explain the business process outsourcing Indonesia that most companies used. All these can be very confusing – and frustrating – for a foreign national or company for the following reasons: Many relevant laws in Indonesia are ambiguous, unpredictable, or unclear. Sometimes they implement them strictly, and sometimes they don’t. The rules can also change quickly. Although Indonesia’s ease of doing business is improving every year, it still needs to double its efforts to fight bureaucracy and corruption, as well as promote transparency. Running a business can hit a snag simply because of the wrong paperwork. It can delay your processes by a few weeks or even months. You may be denied the approval of certain documents. Penalties, nevertheless, are very high, especially if you hire illegal workers. Unfortunately, one of the main reasons for illegal hiring is having the wrong interpretation of the law or holding the incorrect permit. Setting up a business in Indonesia is costly. It usually requires huge total capital, including a paid-up capital. Cekindo Business Process Outsourcing Indonesia If you want to save costs, time, and money while still being able to guarantee the functions of your business such as HR or payroll, you need PEO outsourcing services. PEO (Personnel Employment Outsourcing) is a novel but sensible setup wherein a third-party company like Cekindo becomes your co-employer. In the process, we become your partner in managing your growing team. Under our PEO business process outsourcing Indonesia, we provide: Recruitment and HR Establishment We can help build your team from the ground up. We have an extensive network of both local and foreign nationals whom we can tap for your labor needs. Also, consultants who specialize in headhunting for management and director positions. Moreover, we can even help you meet the requirements of setting up a shareholding company. Note: Do you like someone to sponsor you for a business visa? Would you like some help in bringing a foreign worker to the country? Cekindo can process business visas and work permits in Indonesia fast. In certain cases, our company can act as your sponsor to speed up the processing. Payroll Processing What are the minimum wages in Indonesia? Should I charge per hour or per diem? What are the other fees to pay when I hire a foreign worker? How do I calculate the taxes? You can stop finding the answers to these questions as we handle all stages of payroll processing for you with our business process outsourcing in Indonesia. Accounting and Tax Reporting You need correct accounting and tax reporting for two reasons. One, you want your business to stay compliant with the regulations of the country. Second, you like to make sure you can maximize investment incentives including tax allowances, deductions, and exemptions. From accounting paperwork to auditing, Cekindo covers all tasks. Auditing Review Service You cannot be complacent with your accounting books. Anytime the taxman can take a look at them and scrutinize your figures. Besides our accounting services, our company can also provide both internal and external auditing services. Get Help! Cekindo has an amazing team of professionals from company registration consultants to attorneys, accountants, and market analysts. You can run your business smoothly and efficiently even when you’re not in the country most of the time. Get help from our business process outsourcing Indonesia. Contact us today to receive a free estimate of your needed services or get more information. Read Full Bio Verified by Daris Salam COO Indonesia at InCorp Indonesia With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships. Frequently Asked Questions What are the obligations related to payroll? Health Insurance and Social Security Insurance (BPJS) are mandatory. The company and the employee will bear a certain percentage, respectively. Another obligation is tax withholding. The percentage and type of taxes vary from case to case. Contact us to get information on your specific field. Is there any foreign exchange control or limitation in Indonesia? Foreign currency transfers to and from Indonesia are not subject to exchange controls, allowing investors to freely move funds. However, these transactions must be reported to Bank Indonesia. Moreover, there are reporting obligations concerning offshore assets and liabilities to ensure transparency in financial activities. What non-wage compensation do employers in Indonesia usually provide their employees with? Besides the agreed-upon salary, employers typically offer other compensations such as overtime pay, paid annual leave, festive holiday leave, and insurance. How many employment and hiring options exist in Indonesia? According to Indonesia’s Manpower Law, employers can hire Indonesian talents under temporary or permanent employment.