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InCorp offers a comprehensive range of solutions to ease the company registration process and help you create a viable roadmap for your business.
Get assistance from experts with a decade of experience in assisting international business owners expanding into Indonesia.
Avoid any bureaucratic complexity when closing your company by engaging with our experienced legal advisors.
What type of legal entities should you choose to register a company in Indonesia? We can assist you in choosing which is the best one to grow your business.
To help businesses survive during this unfortunate time, InCorp provides corporate recovery in Indonesia and insolvency services.
Granting an environmental permit in Indonesia needs an Environmental Impact Analysis (AMDAL) in advance.
Obtaining property & land ownership in Indonesia offers some challenges for foreigners. However, buying property in Indonesia is attainable with specific resources and documents.
Recent regulatory changes have a knock-on effect on Indonesia's Merger & Acquisition landscape. Check on how we can navigate you through your M&A in Indonesia.
InCorp provides Virtual Office services Indonesia in various locations: Jakarta, Bali, Semarang, Surabaya, and Batam.
Business process outsourcing in Indonesia is a viable option to streamline bureaucratic complexities that hurdle your business expansion objectives.
InCorp offers a complete range of accounting service Indonesia, from tax reporting to auditing.
With professional financial audit services from InCorp, you can ensure all accounting activities are accurately recorded and compliant with Indonesian regulations.
Using an Employer of Record service to set your roots in Indonesia opens the doors to new opportunities in the country.
Financial and Operational Resilience services from InCorp are developed to support businesses and help them survive during this difficult time.
Payroll services in Indonesia are a practical solution to avoid unnecessary complexities while you focus on growing your business.
Using a recruitment agency in Indonesia will help you hire the best candidates for your company, saving you time and money.
Tax consulting in Indonesia are the shortcuts to fulfill the administrative obligations with high accuracy and in a timely manner.
The Indonesian government promotes tax holidays as one of the fiscal incentives to attract major foreign direct investment in Indonesia.
Operating businesses in Indonesia, entrepreneurs must comply with the regulations accordingly, especially concerning taxes.
Immigration in Indonesia is one of the strictest and most complex processes due to its ever-changing regulations. InCorp provides a seamless experience in obtaining your stay and work permits.
Avoid any hassles by engaging with an experienced visa agent in Indonesia.
A dependent visa Indonesia is a document that allows foreigners to bring their family while settling down in the country.
Investor KITAS Indonesia is a stay permit that offers many benefits to investors that invest in the country.
Overseas Visas are required for Indonesians who are planning to stay abroad for an extended period of time.
KITAP is a permanent stay visa for foreigners who have intentions to stay in Indonesia.
Foreign retirees often find their plans stuck due to the complex visa application process. InCorp helps expedite the process.
Obtaining a social visa is daunting if you are not familiar with the country’s complex bureaucratic processes. Consult with us for a seamless Indonesian visa application experience.
Foreigners married to an Indonesian citizen are eligible for a spouse-sponsored KITAS.
Learn how to obtain an Indonesian tourist visa seamlessly and securely, directly from a trusted visa and travel agent.
Get assistance from a trusted visa agent in Indonesia to make your traveling plan to Indonesia even more convenient.
Expedite your Indonesian work permit application process by engaging with a trusted visa agent.
All imported goods must obtain permission granted by specific governing bodies prior to entering the local market.
Learn more about the cosmetic product registration services in Indonesia.
Learn more about exporting goods to Indonesia.
Learn more about the food & beverage product registration services in Indonesia
Learn how to go through halal certification in Indonesia directly from experts successfully.
Learn more about the health supplement product registration services in Indonesia.
Learn more about the household product registration services in Indonesia.
Learn more about importing goods from Indonesia
An Importer of Record in Indonesia is a legal service that enables companies to import products into Indonesia, through an import partner.
Learn more about the medical device registration services in Indonesia.
Register a trademark is necessary to avoid legal issues in the future. InCorp can help you with Trademark Registration services in Indonesia.
Compliance is one of the most challenging parts of business overseas, especially in a country packed with complex bureaucratic processes such as Indonesia.
Updating business documents to align with your company’s growth can be a hassle.
Due Diligence services are needed to assess the credibility of the company or partner you wish to work with or acquire in Indonesia
From Company Regulations to Employment Agreement Drafting, Employment law services from InCorp will help you to compliance with employment policy in Indonesia.
InCorp’s legal consultation services in Indonesia are crafted to help your business settle and fully comply with the latest regulations.
Organizations must continuously evolve and transform to remain competitive and relevant in todays global environment ...
Companies face many opportunities and challenges as a result of a changing market and regulatory landscape ...
Adopting Environmental, Social, and Corporate Governance (ESG) practices can improve your company’s value ...
Risk Management services from InCorp Indonesia can assist companies in building confidence when making future business decisions ...
Transfer Pricing in Indonesia occurs when a company performs an internal transaction within the same business group or its subsidiaries
InCorp's transfer pricing advisory services in Indonesia are marked by the objective to support our clients' business needs.
Our transfer pricing services provide you with a hassle-free experience while still complying with the legal aspects of transfer pricing in Indonesia.
As the market-entry consulting firm in Indonesia, InCorp provides a wide range of customized solutions to ease the business incorporation process.
Both natural and legal persons are entitled to open a bank account in Indonesia. Find out how to open a bank account in Indonesia, here.
InCorp can help you find a trusted Buying Agent Indonesia for product sourcing in Indonesia. Contact us now for a free consultation.
InCorp can help foreigners to get the driving license in Indonesia, whether SIM A or SIM C. Check out the requirements and the procedure, here.
IMEI Registration in Indonesia is necessary to ensure telecommunication devices from abroad can function properly in Indonesia.
With offices in Jakarta, Bali, Semarang, SUrabaya, and Batam, InCorp is ready to assist you as a local partner and distributor in Indonesia.
InCorp can help you to select the trusted local partners to import and distribute your products in Indonesia.
Improve your business by knowing the market conditions in Indonesia through market research services in Indonesia.
InCorp can help you gain information about your competitor's product through mystery shopping.
It is always a challenge for any foreign investors to keep up with the accounting regulations in Indonesia, most importantly the ones related to payroll regulations and the payroll system. There are so many details to incorporate in your reports.
Since the payroll system is one of the most important things in business operations, it is crucial to consider the fair distribution of employee’s wages or salaries and other benefits they receive from working in your company. This way, the company’s payroll system can have a positive impact on the employees. In the end, the overall company’s performance improves as well.
This article aims to help foreign investors to have a better understanding of the payroll system in Indonesia.
The first basic thing to understand is to know precisely your employee’s rights. Here are some rights that your employees must get.
Related article: How are Payroll and Company Culture in Indonesia Related?
An incentive is the amount of financial reward that the employees receive, apart from the regular wage or salary. Incentives are given according to the employees’ performances. It can be given in
the form of individual incentives or group incentives.
The most common from the employer is overtime benefit. The overtime benefit is the amount of money that the employees get when they perform extra working hours (s). In addition, an
incentive is also for the individuals or teams who can reach a certain target set by the company.
The social security (BPJS Ketenagakerjaan) is to protect their security while working in the company and when they reach the pension time. Life insurance is part of this social security (BPJS Ketenagakerjaan). The calculation of the social security (BPJS Ketenagakerjaan) is:
Read also: Payroll Outsourcing: Why It is A Must Do when Running A Business in Indonesia
Both employees and employers pay for health insurance. The maximum amount of money that should be paid by the employer is 4% of the maximum salary of IDR 4,000,000. The minimum amount that should be paid by the employer is 1% of the employee’s UMR (minimum regional wage).
Usually, the employee will receive the benefit of class/type 2. But depending on the company policy, some workers (especially the high-level management position) will get an upgraded class.
The company should pay and report its taxes on a monthly and annual basis. The monthly taxes include:
On the other hand, the annual taxes are:
Any late payment and reporting will cause you to receive a penalty that you must pay to the tax office. To avoid the penalty, it is important to consider paying the tax on time.
Further reading: Corporate and Personal Income Tax in Indonesia
Employees need to follow certain regulations when they want to have a leave. However, every company has to give opportunities for its employees to take the following leaves with the obligation to keep paying their wages/salaries, based on the regulations.
The annual leave is taken for a total of 12 days. The company has the right to allow or postpone the employee’s ability to take the annual leave. The postponement can be done for a maximum of six months. Based on Indonesian law, there is not any certain regulation, which states the compensation that the employee might get if he/she does not take this annual leave. However, this issue can be put in the employment agreement. During the annual leave, the company has to pay the employees the number of wages or salaries agreed.
The maternity leave is given for the period of 3 months and is usually taken 1.5 months prior to the delivery and 1.5 months after the delivery. During maternity leave, the company must give the full wages to the employees. The length of the maternity leave can be extended if there is a recommendation from the doctor.
Should the employees take a leave due to sickness, it shouldn’t reduce the number of annual leave. The number of wages that should be paid when the employees leave because of sickness is as follow:
The terms of personal leaves are also regulated. There are some conditions in which employees’ personal leaves should be paid, including:
Companies must understand the very detailed regulations on the payroll system, especially foreign companies in Indonesia. Although overwhelming, having someone in your department who can manage the whole thing is very crucial.
Otherwise, you can also hire a third party to perform everything on your behalf. This way, you can take care of this payroll system more efficiently and effectively.
If you have any questions related to this topic, just let us know. We will give you the most approachable solution. Contact us now and we will back to you soon.
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.