Employer of Record Services in Indonesia

Would you like to explore methods
other than establishing a company in Indonesia?

You worried about the difficulties of entering the Indonesian market.
You want to challenge without spending $650,000 in capital.
Struggling with issues related to shareholders of a local company.
You want to test business operations as early as possible.

$400 per employee per month

Smooth market entry

into Indonesia

What is Employer of Record (EOR)?

Without establishing a local entity in Indonesia, our company employs Indonesians on your behalf, creating a framework for developing your business in Indonesia.

The biggest advantage is being able to develop new business in Indonesia without establishing a company. Of course, you can’t continue with this arrangement indefinitely in the future, but just by doing business for 1-2 years, the quality and quantity of information you gain will increase dramatically.

Based on this information, you’ll be able to make an informed decision about whether you should formally establish a company and enter the market.

We have offices in both Indonesia and Japan, specializing in bridging business between the two countries.

[Indonesia Office]
GROWINK WISMA KEIAI JALAN JENDERAL SUDIRMAN B KARET TENGSIN, TANAH ABANG KOTA ADM. JAKARTA PUSAT DKI JAKARTA

[Japan Office]
SPACESSINZYUKU, ZENKENPURAZA, 1-4-11, NISHISHINJUKU, SHINJUKU KU, TOKYO TO, JAPAN

EOR × New Business Development

The concept is similar to having your new business team based within our Indonesia branch office. Even though they are legally employed by us, you are free to manage the team members as you wish.

We recommend hiring people who can speak your country’s language through our employment agency service. This ensures that team communication will remain smooth even if the person assigned from your company is not proficient in Indonesian.

Some of our clients also face situations where “there is currently no one in the company who can be assigned to Indonesia.” In such cases, you can hire nationals from your country who already live in Indonesia as local staff.

By holding regular meetings between these locally hired staff from your country and your headquarters, or by having your headquarters staff visit Indonesia regularly on business trips, you can avoid major issues in developing new business in Indonesia.

Various Support Services to Accompany Business Development

You may now have the impression that “even without establishing a company, it seems possible to start business in Indonesia by utilizing an EOR.” However, you might still feel anxious about whether you can really form a team and build a business when you know very little about Indonesia.

We have prepared support services to accompany you through this process. Please refer to the table below for details. We will support you in team launch, business setup, and the business development structure that continues into the second year.

We provide support for team formation

: We use local recruitment agencies and aim to hire Indonesians who can speak English. Based on the job description, our company will provide direction and help prepare necessary documents for hiring (such as offer letters and work regulations).

We provide support for business launch

: We will generously introduce potential business partners or sales agents from our network that could be helpful for your company’s operations in Indonesia. We can also handle legal checks of contracts and contract signing on your behalf. From sales to contracts, we provide an environment where you can develop your business in Indonesia with peace of mind.

We provide ongoing support into the second year

: By developing new business in Indonesia in collaboration with our company, you can see the possibility of entering the Indonesian market based on actual results. This means deciding whether to continue with the EOR into the second year, or to choose the option of establishing a local or foreign company considering market growth potential and your company’s competitive advantage.

Scope of Services and Fees

Scope of Services: Payroll Processing

Our payroll processing service ensures that all employees are compensated accurately, punctually, and in full compliance with applicable local labor laws.

Income Tax Calculation

We proactively manage updates to local income tax regulations on your behalf, eliminating the need for manual monitoring. By entrusting us with tax compliance, you significantly reduce the risk of regulatory violations and associated penalties.

Provide Employee Insurance & Benefit

We administer all mandatory employee insurance and benefit programs as stipulated by the Indonesian government.

Fees: $400 per employee per month

We are experts for Entering the Indonesian Market

: Research
EOR / VISA
Formation

Supporting foreign companies in expanding to Indonesia.

Questions About Employer Of Record Services

How much does employment agency service cost?: The cost varies depending on how you plan to develop your business in Indonesia, such as whether you will employ just one Indonesian staff, what position they will fill, and so on. Please feel free to contact us first to discuss your specific needs.

When can we start this business development support?: You can start as early as the current month. This is the biggest difference from company establishment – you can begin your expansion into Indonesia with low risk starting this month, and if it doesn’t work out, you can simply terminate the contract without complicated procedures.

Can we participate in interviews with Indonesian candidates?: Yes, you can. In fact, interviews will be conducted under your company’s leadership. Our job is to bring candidates to the interview stage and create an environment where they can work smoothly in the workplace after being hired. We kindly ask that you handle the interviewer role.

Is it possible to hire permanent employees?: As a trade-off for the benefits of employment agency services, we provide fixed-term employment rather than permanent employment to make it easier to terminate contracts if needed. When your company establishes a local entity in Indonesia, permanent employment will be no problem.

Upon reconsideration, you may feel the high barriers

The Difficulty Level of

Company Establishment in Indonesia

As you can see from the above, new business development based on employment agency services in Indonesia is highly flexible and low-risk, making it an easy service to implement. On the other hand, establishing a local or foreign company in Indonesia undeniably carries higher risks.

For foreign companies, a paid-up capital of 100 billion Rupiah (approximately $6.5 million) is required at the time of establishment, while for local companies, shareholders must be Indonesian, meaning you cannot hold company shares yourself. When it’s still unclear whether you’ll succeed in the Indonesian market, these are significant risks to take from the beginning.

	Foreign Company	Local Company	EOR
Capital	$6.5 million	$80,000 *Minimum from $3,250	$0
Recruitment of people from your country	Possible	Possible	Possible
Business Regulations	Strict	Flexible	Flexible
Shareholders	Foreign Headquarters	2 Indonesian Individuals	Our Company
Litigation with Shareholders	None	Indonesian Court	Indonesian Court
Risk Level	Medium	Medium-High	Low
Establishment Cost	From $6,500	Around $3,250	$0
Preparation Period	4-5 months	About 3 months	Within 1 month

Establishing a Foreign Company

The biggest advantage is that you can own the company, but the required capital for this is approximately $650,000. Additionally, foreign companies face various regulations on business operations.
Establishing a Local Company

The biggest advantage is that you can establish a company inexpensively, but in exchange, you cannot own any shares. This carries deep-rooted risks such as company takeover issues.
Using an Employment Agency

In terms of cost and risk, this option is superior to the other two choices. There don’t appear to be any significant disadvantages.

Case Studies of Clients Who Conducted EOR with US

EOR was really helpful when we were struggling with the high difficulty of establishing a company.

Educational Service Provider

After researching online, we found that establishing a foreign company in Indonesia requires a minimum capital of about $650,000. Making such a large investment when success was uncertain was challenging, so being able to develop our business at a low cost through the employment agency service was extremely valuable.
The employment agency service that allows for remote management was very attractive.

IT-related Company

When establishing a company in Indonesia, you need to employ local Indonesians and also send your own employees as expatriates. With TRICRUISE MARKETING INDONESIA’s support, we were able to conduct test marketing for our new business through remote management, for which we are grateful.