payroll outsourcing in indonesia

Cost Benefits of Payroll Outsourcing in Indonesia

  • InCorp Editorial Team
  • 29 March 2018
  • 3 minute reading time

You may have always thought of outsourcing your payroll management as a costly thing, but actually, this is not true at all. In this article, we will talk about the cost benefits of payroll outsourcing in Indonesia.

Payroll in Indonesia

Payroll management is one of the most important aspects of running a business. Without a proper payroll system, it is hard to keep your business going. Your employees need to be paid every month according to their working hours or contracts, and the payments need to be spot-on and on time.

Getting the payments done correctly and paying your employees accordingly is a time-consuming task. As your business grows the work piles up, and you have to be careful not to be overtaken by this progress.

Payroll processing in Indonesia or anywhere else in the world needs accuracy. In Indonesia, the regulations on labour, accounting, auditing and tax reporting are not easy as the rules are changed quite often. Therefore, finding a trustable partner specialised in payroll services in Indonesia is a must at some point.

While most small companies keep their payroll management in-house, the companies that already made the switch to outsourcing their payroll continue to grow. It may come as a surprise, but payroll outsourcing is actually very cost-effective and secure.

It takes a load of work off of your shoulders and saves you a whole lot of time – precious time that you need to keep your business a growing success.

The benefits of outsourcing the payroll


First of all, you will be saving time by putting this time-consuming task in other hands. After all, once we start a business, we know that time is money. Relieving this task from your management team can also improve their productivity.

Plus, there is less chance of a work-pressure that is too high. Avoiding stressed employees and burnouts can save you lots of money in the long run.

Reducing in-house costs

Secondly, outsourcing your payroll is a great saver for in-house costs. Sure, when your company is still starting up, and you only have a handful of employees, you can always handle the payroll working load perfectly well, even manually.

But when your business goes where you want it to – growing bigger and more successful, soon you will notice that the task of payroll needs more complex software, costing money.

It also takes more time, requiring even more money and it needs manpower, costing money again. All together you can start gaining insights into the real cost-benefits of payroll outsourcing.


You are handing the whole payrolling task over to professionals who have the responsibility to do their job flawlessly. That’s what you are paying them for after all.

All the tasks relating to payroll in your company in Indonesia will go smoothly, while you are busy doing other responsibilities that come with running the business.

Reliable Payroll Services in Indonesia

The payroll task is of great importance to your business, and you need to collaborate with a reliable, experienced payroll company.

Cekindo is a trustable company with experienced business consultants and lawyers that have deep knowledge and understanding of the Indonesian and local law regulations. Being present on the Indonesian market for almost a decade, we will ensure you that your payroll is in the right hands.

Contact us to get more information.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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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.

Frequent Asked Questions

Health Insurance and Social Security Insurance (BPJS) are mandatory. The company and the employee, respectively, will bear a certain percentage. Another obligation is tax withholding. The percentage and type of taxes vary from case to case.

There are many benefits of payroll outsourcing in Indonesia. However, some of the most noteworthy ones include cost reduction (no need to build an internal team), compliance (Indonesia is well-known for its constantly changing payroll regulations), and core business focus (payroll is a non-revenue-generating task).