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 Dessy Amelia Senior Tax Manager at InCorp Indonesia Dessy has over eight years of experience in tax services, leading InCorp Indonesia's tax team in compliance and strategic solutions. She holds a bachelor's degree in Fiscal (Tax) Administration from Universitas Indonesia and is pursuing a master's degree in Tax Policy and Administration at the same university. She is also a certified tax consultant (USKP C), and a member of the Indonesian Tax Consultants Association (IKPI). Frequently Asked Questions 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. Should I submit tax reports if my company has been established but has no business activities? Yes, submitting monthly and annual tax reports is mandatory even if your company does not have any business activities, thus owing zero taxes. What are the standard regulations regarding employment in Indonesia? The standard regulations state: Minimum salary of IDR 3.9 mil for the Jakarta region 12-day annual leave (minimum) BPJS coverage Holiday allowance Get in touch with us. Lead Form Newsletter Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. 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 Finance A Quick Guide on Indonesia Visa for Indian Passports Read more Export and Import License in Indonesia: How to Get One? Read more Latest Regulation: Employment of Foreign Workers in Indonesia Read more