Benefits of PEO Outsourcing in Indonesia

InCorp Editorial Team

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Today, business owners and entrepreneurs in Indonesia know that every dollar and every minute counts when it comes to running a business. As your business in Indonesia grows, your HR demands can pile up, and you will be overload with employee’s paperwork. There is also a chance that your company struggle to attract and retain talented and good employees because you do not have the time and resources for recruitment. Whatever the factor may be, challenges of HR can be an undeniable hindrance to your company’s bottom line and growth. However, the good news is, you can solve this problem once and for all if you outsource in Indonesia with the help of a professional employer organisation (PEO).

So what is PEO? And why are so many organisations outsourcing their HR to-dos to PEOs?

What is PEO?

The Professional Employer Organisations, also known as Employee Leasing Companies, or PEO the acronym, technically employs the workers of different companies and oversees their HR-related functions.

PEO allows small- to medium-sized businesses to outsource their administrative needs in order to increase their business productivity and efficiency.

The PEO is not something new. It has been on the market for over three decades and has helped millions of people worldwide. PEO services are sometimes referred to business process outsourcing, co-employment, as well as HR outsourcing.

Outsource in Indonesia: What are the Benefits?

The PEO has a pool of different clients, and this helps lower risks and insurance costs for the companies. Additionally, this enables PEO to propose a wide range of perks, benefit plans that startups or small businesses might not be able to afford on their own.

The reasons why choosing a PEO outsourcing are different for every company, but they all boil down to three main benefits that PEO can offer:

  • minimising costs and expenses
  • reducing risk and liability
  • increasing productivity and efficiency

Reducing Risk and Liability

PEO outsourcing helps business owners comply with employment and labour laws that affect their company. Especially for new startups and entrepreneurs, they need expertly execute administrative tasks from PEO outsourcing to be in compliance with the government regulations.

In Indonesia, the employment of foreign workers is one of the issues international companies have to face. PEO outsourcing providers make sure that your future employee complies with the Indonesian legislation and ensure the smooth process.

Interested in hiring a foreigner? Continue reading our Employment of Foreign Workers in Indonesia (Update from September 2018).

Minimising Costs and Expenses

One of the largest expenses a business has to deal with is the employee. Beyond the employee’s salary, there are other costs incurred for employers such as payroll taxes, worker’s compensation, insurance, etc.

Therefore, with PEO outsourcing by pooling many employees from different companies together, employers are able to purchase employee’s insurance and compensation at discounted rates.

Increase Productivity and Efficiency

Companies that outsource HR to PEO do not just improve their productivity of internal HR personnel. With PEO outsourcing, companies are able to benefit from the high-quality service from the highly trained experts and professionals.

Employers will not need to be worried about the inaccuracy of their employees’ paychecks, and other administrative tasks that require high accuracy.

Outsource in Indonesia through Cekindo

PEO focuses specifically on administrative business tasks of your company. This allows you to focus your time and effort on day-to-day profit-generating tasks.

Cekindo serves as a PEO provider in Indonesia and offers comprehensive HR services such as payroll, health insurance, benefit administration, labour law compliance, and various ancillary services.

Cekindo’s PEO outsourcing will be able to help your business with the following:

  • Manage complicated HR services for your business, including HR compliance, payroll processing, employee benefits and risk management
  • Assist in reducing liability for payroll taxes, payment for wages, etc.
  • Help recruit employees and talents
  • Provide workers’ compensation and handle their insurance
  • Increase the attractiveness of your business to existing and potential employees


However, as a PEO, Cekindo services are limited, and there is no reason to worry of PEO provider to take control over your company and do the following for your business:

  • Manage and take control of your business
  • Provide and supply labours to your factory or site
  • Decide who to hire or fire


Cekindo is a skilled HR provider located in three cities in Indonesia, namely Jakarta, Semarang and Bali. Contact us or visit us in our offices to get to know more about PEO outsourcing in Indonesia.

Tjhia Edy Tarlesno

Legal & Compliance Manager at InCorp Indonesia

Edy Tarlesno holds various certifications and a respectable degree to be an expert on internal and external legal compliance in Indonesia. His experience starts from bankruptcy and insolvency, leading to a prominent social foundation consultancy in Indonesia.

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