Guide To Hiring Employees from Indonesia

Indonesia is one of the developing countries in Asia. Currently, the Indonesian economy is the largest in Southeast Asia and the 15th largest in the world. With impressive GDP growth, second only to China and a population of more than 270 million, Indonesia offers a lot of potential for companies looking to acquire talent or remote staff from the country. If you are interested in hiring remote workers from Indonesia for the first time, you can check the following!

Capital & Major Cities

Jakarta, Surabaya, Bekasi, Tangerang, Bandung, West Jakarta, Medan
Time Zone & IDD UTC+7 to +9 (various),

Currency & Exchange Rates

Indonesian use the rupiah (IDR) as their current. 1USD is approximately 14,000 IDR
Spoken Language(s) Bahasa Indonesia is the main language but there are more than 700 mother languages spoken here.

Public Holidays

There are 12 public holidays which are observed in Indonesia.

Overview of the Talent Pool

  • Indonesia offers many young talents who have potential and are able to speak English fluently. They can fill various important positions as remote staff
  • Currently, Indonesia offers a large number of skilled talent in technology including in engineering, manufacturing and construction in the world. Not only in the technology sector, but Indonesia also has many potential workers in the field of business, trade, finance and so on.
  • In recent years, the need for talent in the fields of 5G, cloud, big data and others has increased. The Indonesian government also supports these developments and takes the initiative to bridge the technology needs in Indonesia. This will certainly be very useful in the future. Salaries & Benefits in Indonesia
  • Remote workers should get facilities to work such as office equipment such as laptops, the costs required to complete a job, or co-working space if needed.
  • There is an obligation to pay the thirteenth salary in Indonesia and it is known as THR or THR. The thirteenth salary is paid once a year before the long religious holiday arrives.
  • The concept of sick days does not apply in Indonesia. If employees are sick, they can get time off by showing a medical certificate explaining the employee’s health condition.

Cultural insights

  • Indonesian workers are known as loyal, punctual, and very respectful professionals.
  • On the other hand, Indonesian workers also have great respect for their superiors, so they often feel reluctant to express their opinions. If they say yes, it may actually mean no.
  • Indonesian workers are also known to not like to gossip much about politics, sports, and others. They like a quiet work environment.
  • Indonesian workers are professional and very respectful.
  • The need for peace is valid with external parties, especially during discussions and negotiations. Don’t expect that negotiations will be so fast because it takes a lot of time to allow everyone to save their face.
  • Feedback is welcome by Indonesian workers as long as it is done in private and respectfully. Public criticism would lead employees to lose their respect and we recommend that employers always give feedback in a polite manner.
  • More than 90% of the Indonesian population are Muslim and they celebrate Islamic holidays just as the Birthday of the Prophet Muhammed which is widely celebrated across Indonesia.

 Terminating employees

Terminating an employee in Indonesia requires approval from the Industrial Relations Court (IRC) and filing a lawsuit. But, if you make an agreement with the worker, you can skip it and make the worker signing the mutual termination.