Multiplier is the top pick for Indonesia — owned entity, automated BPJS handling, and $199/mo cheaper than Deel with comparable compliance depth. Deel is the better choice when you’re scaling fast and need bulk onboarding or 24/7 support. An EOR without genuine Indonesia depth is a liability in this market — BPJS registration failures, missed THR payments, and botched terminations under the Manpower Law all carry real legal consequences.
Indonesia is Southeast Asia’s largest economy and one of the most compliance-complex EOR markets in the region. BPJS Kesehatan, BPJS Ketenagakerjaan, the Manpower Law (UU No. 13/2003), and the Job Creation Law (Omnibus Law) create a regulatory environment where provider expertise is not optional.
Why Indonesia EOR is Complex
Key compliance obligations that trip up inexperienced providers:
- BPJS Kesehatan (National Health Insurance): Both employer and employee must be registered from day one. Employer contribution: 4% of salary; Employee: 1%.
- BPJS Ketenagakerjaan (Workers’ Social Security): Covers work accident, death, pension, and old age savings. Employer contribution: ~5.24% of salary.
- THR (Tunjangan Hari Raya): Mandatory religious holiday bonus — one full month’s salary for employees with 12+ months tenure, pro-rated for newer employees. Paid before Eid al-Fitr. Late or underpaid THR carries government penalties.
- Termination (PKWTT): Permanent employees have extremely strong protections. The Omnibus Law modified some provisions but termination remains complex and expensive. Severance typically runs 1–2x monthly salary per year of service.
- Fixed-term contracts (PKWT): Limited to a maximum of 5 years total duration including extensions. Cannot be used to circumvent permanent employee protections.
- Manpower Law reporting: Companies must report employee data to the Ministry of Manpower regularly.
Top EOR Providers for Indonesia
| Provider | Indonesia Entity | BPJS Handling | Monthly Fee | Rating |
|---|---|---|---|---|
| Multiplier | Owned | Full | $400/mo | 4.7 |
| Deel | Owned | Full | $599/mo | 4.8 |
| Remote | Owned | Full | $599/mo | 4.7 |
| INS Global | Owned | Full | Custom | 4.3 |
| Payoneer WFM | Owned | Full | From $199/mo | 4.3 |
1. Multiplier — Best Value for Indonesia
Multiplier’s Singapore headquarters gives it genuine operational proximity to Indonesia — not just legal entity ownership but an ASEAN-native team that handles BPJS registration, THR provisioning, and Manpower Law compliance directly, without routing through a local partner.
Indonesia-specific strengths:
- Owned entity in Indonesia
- Automated THR calculation and monthly provisioning (avoids cash-flow surprises before Eid)
- BPJS Kesehatan and Ketenagakerjaan registration handled from day one
- Bahasa Indonesia employee-facing HR documents
- Strong experience with both PKWT and PKWTT contract structures
Weakness: Support response times for complex Indonesian termination scenarios can be slower than Deel’s larger compliance team.
Best for: Startups and SMBs wanting full Indonesia compliance at the most competitive price.
2. Deel — Best for Scale and Speed
Deel’s owned Indonesia entity and automation-heavy platform make it the fastest route to compliant Indonesia hiring. For companies onboarding multiple Indonesia employees simultaneously, Deel’s bulk onboarding capabilities are a significant advantage.
Indonesia-specific strengths:
- Owned entity
- Fast onboarding — 5–10 business days typically
- Automated BPJS contribution tracking
- Strong track record with Indonesian tech and e-commerce sector hiring
- 24/7 support for compliance queries
Best for: Companies scaling Indonesia hiring quickly or managing 10+ employees.
3. Remote — Best for IP-Sensitive Roles
Remote’s owned Indonesia entity and strong IP contract clauses make it the top choice for companies hiring Indonesian engineers or product developers. Indonesia’s IP law recognises work-made-for-hire, but proper contractual documentation is essential — and Remote’s localized approach is more robust than generic templates.
Best for: Tech companies where IP protection is critical.
4. Payoneer WFM — Budget Option
Payoneer WFM’s starting price of $199/mo makes it the most affordable Indonesia EOR with owned entity status. Post-Payoneer acquisition, its payments infrastructure has improved. Solid for straightforward Indonesia employment; less suited to complex termination scenarios where deeper compliance expertise is needed.
Best for: Budget-conscious companies hiring junior to mid-level roles in Indonesia.
5. INS Global — Asia-Native Specialist
INS Global has strong Indonesia expertise as part of its ASEAN coverage, with a physical presence in Jakarta. Particularly useful for companies operating across multiple Southeast Asian markets who want a single provider with genuine regional depth.
Best for: Companies hiring across multiple ASEAN markets simultaneously.
Indonesia Compliance Snapshot
| Obligation | Details |
|---|---|
| BPJS Kesehatan | Employer 4% + Employee 1% of salary |
| BPJS Ketenagakerjaan (JHT) | Employer 3.7% + Employee 2% |
| BPJS Ketenagakerjaan (JP) | Employer 2% + Employee 1% |
| BPJS Ketenagakerjaan (JKK) | Employer 0.24–1.74% |
| BPJS Ketenagakerjaan (JKM) | Employer 0.3% |
| Income Tax (PPh 21) | Progressive 5–35%, withheld by employer |
| Minimum wage | Set by province; Jakarta: ~IDR 5.1M/mo (2025) |
| Annual leave | 12 working days after 1 year |
| THR | 1x monthly salary before Eid; pro-rated for under 1 year |
| Probation | Max 3 months for permanent employees |
Key Questions to Ask Indonesia EOR Providers
- Do you own your Indonesia entity (PT PMA or similar)?
- How do you handle THR — do you provision monthly or bill as a lump sum?
- What is your average Indonesia onboarding timeline?
- How do you manage the PKWT vs PKWTT decision for each role?
- Walk me through your Indonesia termination process including Omnibus Law severance calculation
- Do you have Bahasa Indonesia-speaking compliance staff?
Frequently Asked Questions
What is BPJS and why does it matter for EOR? BPJS Ketenagakerjaan (workers’ social security) and BPJS Kesehatan (health insurance) are mandatory for all Indonesian employees from day one of employment. Failure to register carries fines and back-payment obligations. Confirm your provider handles both registrations immediately upon onboarding — not retroactively.
What is THR and when is it paid in Indonesia? THR (Tunjangan Hari Raya) is a mandatory religious holiday bonus equivalent to one full month’s salary. For Muslim employees (the majority), it is paid before Eid al-Fitr. Other religions have their own THR dates. Your EOR should provision THR monthly to avoid a cash-flow spike in the weeks before the holiday.
How difficult is it to terminate an employee in Indonesia? Very difficult. Permanent employees have strong protections under the Manpower Law. Termination requires documented cause, Bipartite negotiation with the employee, and if unsuccessful, escalation to the Industrial Relations Court. Severance can run 1–2x monthly salary per year of service. Budget accordingly and involve your EOR’s Indonesia legal team from the first sign of performance issues.
Can I use a fixed-term contract in Indonesia to avoid termination complexity? Fixed-term contracts (PKWT) can be used but are heavily regulated. Total PKWT duration including extensions cannot exceed 5 years. PKWT cannot be used for permanent or core business activities. Using PKWT incorrectly causes it to convert automatically to PKWTT, triggering all permanent employee protections.
Which EOR is best for hiring in Jakarta vs other Indonesian cities? Most top providers have strongest coverage in Jakarta. For Surabaya, Bandung, or Bali-based employees, confirm your provider has local payroll processing capability and provincial minimum wage tracking — rates vary significantly by region.
