HR Outsourcing in Indonesia

HR Outsourcing in Indonesia: The Benefits & Challenges

  • InCorp Editorial Team
  • 8 January 2024
  • 4 minute reading time

Hiring an incompetent employee is a liability. According to a survey, a bad hire can cost a business $50,000 or more. While it actually differs depending on the industry or the country, one thing is clear: it loses you money.

A poorly chosen employee can result in a fast turnover rate, low productivity, and decreased morale among the team members. It’s not unusual for the best people to leave if companies continue to pick the wrong individuals to join a team. This person can also potentially affect your brand and your customer relationship.

For all these reasons, it is not enough that a business has a human resource department. More than anything, it needs to be effective.

Foreigners who are trying to open companies in another country such as Indonesia may find setting up an HR more challenging. That’s why Cekindo is here to help.

The Benefits of HR Outsourcing in Indonesia

One of the trusted market-entry partners in Indonesia, Cekindo as an Employer of Record has designed useful HR outsourcing Indonesia programs for a variety of foreign clients.

Our company has a presence in some of the major cities in the country, and these include Semarang. A well-known port-city, the metro is home to almost 2 million people and around 10 universities, which makes it not only accessible but also a hotspot for new talent. However, this is also a reason why selection of a right candidate can take weeks.

In Cekindo, we know that time is money. Our Semarang team will advise you on quality HR outsourcing among others so you can truly focus on your core activities.

Outsourcing the recruitment process will bring you these benefits:

HR and national or local laws always go hand in hand, and many of your company’s guidelines or policies such as wages have to refer to these regulations. Navigating through these laws, though, can be difficult for a new foreign investor for many reasons. One of these is they can change more often than one thinks. Moreover, with so many cities and provinces in the country, it is hard to keep up with the differences in regulations.

Indonesia HR outsourcing reduces the time you need to understand these laws as you will receive both legal support and guidance every step of the way.

Read also Semarang: The Gateway to Central Java and International Markets

2. Recruitment

Recruitment is a time-consuming, laborious process, which many foreigners may not have. It may require you multiple trips to the country, which is costly.

Working with Cekindo, you can save more money without compromising the quality of your hires. We can outsource your entire recruitment phase to us, and we’ll take care of it from start to finish. We handle the advertising and the screening of the applicants. Our company has a reliable and extensive background check service, which we can complete within 7 days.

We also have an in-depth knowledge of the workforce profile and possess a database of contacts and affiliations, which can help us find good candidates in a short amount of time.

Should you wish to hire expatriates, Cekindo can assist you in processing work permits and business visas.

3. HR Establishment

HR is also one of the most complex departments in any business, but we can help simplify it for you. Besides HR outsourcing, Cekindo also specializes in payroll processing, tax reporting, accounting, and auditing. We’re here to make it more convenient for you to draft strategic, value-oriented, legal policies.

We will also help you in developing your compensation and benefits program.

Outsourcing HR in Semarang will help you to avoid working with the bad apples. Be sure your business is surrounded by qualified and competent individuals who will cement your presence in the country and build your brand from the ground up with the support it requires.

For more information, contact us today.

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

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 soon as you decide you’d like us to be your Employer of Record, the onboarding process starts and will take approximately 5 days in our HR and Payroll department.

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.