Home Blog What are the standard regulations regarding employment in Indonesia? Due Diligence Background Check | Employment Law Services | HR Consultation | Human Resource | Human Resource Outsourcing | Recruitment What are the standard regulations regarding employment in Indonesia? InCorp Editorial Team 17 June 2025 1 minutes reading time Table of Contents The standard regulations state: Minimum salary of IDR 3.9 mil for the Jakarta region 12-day annual leave (minimum) BPJS coverage Holiday allowance 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. What is the Indonesian employment status in PMA company? In Indonesia, employment arrangements are categorized into temporary employment agreements (PKWT) and permanent employment agreements (PKWTT). Temporary contracts are for short-term, seasonal, or experimental work, while permanent contracts are for continuous employment. 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. Is it required to hire Indonesian staff in the PMA company? In Indonesia, the necessity of hiring Indonesian employees by foreign companies typically arises from commercial requirements, regulatory mandates in specific sectors like construction or shipping, or as part of employing foreigners to fulfill knowledge transfer obligations. 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Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Due Diligence Background Check How to Successfully Hire Employees in Jakarta Read more 7 Human Resource Management Challenges when Doing Business in Indonesia Read more Hiring Local or Expatriates in Indonesia? Things to Know Read more