Home Blog 5 Ways How to Grow Your Business through Outsourcing Human Resource | Indonesia | Local Partner Distributor | Recruitment 5 Ways How to Grow Your Business through Outsourcing InCorp Editorial Team 31 January 2018 4 minutes reading time Table of Contents Operations and Services to Outsource in Indonesia Benefits of Outsourcing Outsourcing, also known as “contracting out”, is a business practice of having organizational tasks, functions, and operations done outside a company. They can be outsourced to an external company to improve efficiency and reduce costs. Outsourcing is known to be the passive path to growing your business in Indonesia, especially for startups and small businesses. As a foreign business owner doing business in Indonesia, you may find it challenging to both maintain your business performance and keep up the daily operations. Expat who juggle multiple tasks simultaneously while starting a business in Indonesia, are taking the advantage of outsourcing in order to work their way up to a consistent income stream. Multitasking is not always a virtue when it comes to growing your business. It can potentially damage your business image and decrease productivity. In this article, we will unfold how outsourcing can help grow your business in Indonesia. Operations and Services to Outsource in Indonesia A successful foreign business in Indonesia knows how to delegate the routine to third parties. Here are some of the activities you should, and can easily outsource to free up your valuable time and focus on growing your business. 1. Payroll Processing When you outsource a payroll processing, it means that payroll-related tasks will be dealt externally by a professional agency or service provider. With Cekindo as your outsourcing partner, we are able to handle all employees’ financial matters including calculation and payment of salaries. 2. Recruitment and Human Resource Operations Engage a third party to help you manage employee’s contracts and recruiting for talents and labours. This step is crucial as you can focus more on HR strategy and policy development. Related article: 5 Compelling Reasons to Outsource HR in Indonesia 3. Accounting and Tax Reporting When you first start your business in Indonesia, it can be daunting to do your own accounting and tax reportingwithout the particular expertise. Those figures you make have to be accurate and detailed, and only a professional firm can do that for you. 4. Audit and Reviews Audit and review are done to achieve process improvement and cost reduction. It is often one of the biggest challenges for startups and small businesses due to the lack of human resources and certain knowledge to conduct the audit. Companies in Indonesia often achieve intended results when using external professionals. 5. Business Visa and Work Permit in Indonesia A business visa or a work permit is the first thing you need when you visit Indonesia for business purposes or intend to work in Indonesia. However, the regulations and tedious paperwork can take a toll on companies or individuals wishing to go ahead with the application on their own. Send an enquiry to Cekindo to ensure the fastest application process. Benefits of Outsourcing Outsourcing in Indonesia can help you get things done in the most efficient, time-saving, and cost-saving way – to help your business flourish in Indonesia. Concentrate your energy on core business activities Outsourcing non-core business functions will free up tons of resources and staff can focus on things that will add value to business growth. For that, you can expand and grow your business to a wider market more quickly. Shorten the length to break into the emerging market New information and updated regulations will come to you almost real-time from an agency you engage for outsourcing in Indonesia. An enormous amount of time is saved and you don’t have to go through all the hassles of paperwork, process and possible unconformity to laws. Reduce costs and overhead significantly When your business operations or functions are complicated, and they require a huge amount of employees involved to perform the tasks, outsourcing can be an excellent option. Prevent unnecessary mistakes By outsourcing your business weaknesses, you and your employees do not have to struggle and your tasks can be fulfilled with guaranteed positive results. Cekindo has been providing various outsourcing services catering to your requirements and needs. Get in touch with us now for 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 How does the HR outsourcing mechanism work? As your HR outsourcing provider, InCorp signs a standard employment agreement with an outsourced employee. After this, we take care of the employee’s payroll in coordination with your company. InCorp is also responsible for paying the salary to the employee. 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. 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 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. Get in touch with us. 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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 Human Resource An In-Depth Guide to Representative Office in Indonesia Read more Recruitment of Foreign Workers in Indonesia Read more The Importance of Accurate Translation of Legal Documents in Indonesia Read more