Employment in Jakarta: How to Successfully Hire Employees

How to Successfully Hire Employees in Jakarta

  • InCorp Editorial Team
  • 19 October 2020
  • 4 minute reading time

As an employer, before hiring any employees in Jakarta, it is important to know about employment regulations, such as the minimum wage, benefits, insurances.

This article discusses the important points that you have to take into account prior to recruitment.

recruitment in indonesia

Recruitment in Jakarta

1. Minimum Wage

Under the latest DKI Jakarta regulation, the minimum wage of an employee is IDR 4,267,349, with effect from 2020. In 2019, the minimum wage was IDR 3,940,973.

For employers who are not in compliance with this new regulation will be sanctioned by the Indonesian authority with one to four years of imprisonment.

2. Benefits

Standard benefits that almost all Indonesian employees enjoy are overtime pay, paid annual leave, and festive holiday leave.

  • Overtime pay: the overtime pay calculation during weekdays is different from the calculation during the holidays. The holidays’ overtime fee is higher starting from the first five hours of overtime
  • Paid annual leave: employees in Jakarta are qualified for 12-day paid annual leaves once they have been employed for at least 12 months consecutively in the company. The paid annual leaves are not allowed to be carried over to the following year
  • Festive holiday leave: employees in Jakarta are eligible for festive holiday leaves ranging from religious holidays to national holidays, commemorative holidays to international holidays


3. Insurances

Required insurances for full-time employees are basic healthcare (BPJS Kesehatan) and social security (BPJS Ketenagakerjaan) insurances. Both employees and employers need to make contributions to the BPJS Kesehatan and BPJS Ketenagakerjaan.

For work-related injury insurance (JKK) and non-work-related accidental death insurance (JMT) under the BPJS Ketenagakerjaan, employees do not have to make any contributions.

Employment Contract in Jakarta

As per the Indonesian Manpower Law, there are two types of employment contracts in Jakarta and all across Indonesia.

The employment contract serves as a mutual written agreement between an employee and an employer to understand their obligations and protect their rights.

1. Permanent Employment Contract

This type of contract is the one you will mostly encounter in Indonesia. It is applicable for employees who hold permanent positions in a company. The contract includes a 3-month probation period and an employee will only become a permanent employee by law after they have completed the probation period.

2. Temporary Employment Contract

This type of employment contract applies to temporary or seasonal workers. It only lasts for a few months to two years depending on the length of the project.

As for freelancers, the special type of work contract is known as PKWT. However, under this contract, freelancers can only work 21 days the most in a month.

Employee Background Check for Employment in Indonesia

In addition to the employment contract, employee background checks should also be part of the hiring process to ensure the success rate.

Why is employee background check so vital for your business? The reason lies in that some hire can end up fruitless due to misrepresentation or deception from the potential candidates.

Hence, an employee background check can save your business from recruiting any dangerous or unqualified individuals. It can also reduce your company’s liability and avoid unnecessary lawsuits.

These are the thing you need to check and verify while performing an employee background investigation:

  • Criminal record
  • Education, qualification, and certification
  • Work and employment history
  • Sexual offense record
  • Alcohol and drug tests
  • Credit and financial background

How Cekindo can Assist with Employment in Jakarta

Cekindo offers world-class business outsourcing services of employment in Jakarta, including recruitment outsourcing, payroll outsourcing, and background check. We can help you streamline your business operations, reduce costs, and save time.

As one of the most prominent Indonesian business partners and outsourcing providers to many global organisations, Cekindo understands what it takes to bring your business to a new height at the local and international level. We always do our best to match your company’s goals and our expert team has built a great reputation for delivering dedicated and outstanding services.

We create the best opportunities for your business employment in Jakarta. Reach us today by filling in the form below.

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.

Lead Form

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

Before entering into any agreement with our clients, we sign a data protection agreement to ensure that all data are kept confidential across all involved activities.

According to the Indonesia’s Manpower Law employers can hire the Indonesian talents either under a temporary or a permanent contract.

  • Prohibit any form of discrimination and provide equal opportunity for Indonesians and expatriates
  • Increase the competence of the workers by giving or encouraging job training
  • Follow the procedures of termination (Terminating an employee in Indonesia can be a long, tedious, and expensive process.)
  • Observe the working hours, holidays, and overtime regulations
  • Give mandatory employee benefits including social security and health insurance
  • Withhold only the right amount of income tax on behalf of the employees
  • Follow the wages and other benefits outlined by the law
  • Process the work permits for foreign employees

As a leading recruitment outsourcing provider in Indonesia, InCorp offers comprehensive services. We will conduct an in-depth background check on candidates to verify references and qualifications.

Cost reduction, hiring time reduction, hire quality are among the most noteworthy benefits your company can enjoy.