People & visas
Employer of Record (EOR) in Indonesia
Employer of record Indonesia services — hire and pay staff without setting up an entity first.
Who this is for. A foreign company that wants staff in Indonesia now, without waiting to establish an entity — or that is testing the market before committing to one.
How it works
- Tell us who you are hiring, and on what terms The role, the salary, the benefits and the start date. Nothing is drafted until this is settled.
- Employ your staff on your behalf Compliant contracts, BPJS registration and tax registration.
- Run payroll and the statutory filings Paid on time, every deduction handled.
- Direct the work You manage the person day to day; we hold the employment.
Trusted by companies operating in Indonesia
1 week
To onboard a local hire
No minimum
Number of employees
1 month
Notice to end the arrangement
Included
What you get
- An employment contract under Indonesian law
- Payroll, with BPJS, PPh 21 and the WLKP manpower report handled
- Statutory benefits, including THR (the religious holiday allowance) and annual leave when collective leave falls around Idul Fitri
- Onboarding and offboarding
- A single monthly invoice rather than a payroll function
What is an employer of record in Indonesia?
An employer of record (EOR) in Indonesia is a local company that employs your staff on your behalf, so you can hire before you have a company. We hold the employment contract and run payroll, income tax and BPJS social security, while you direct the work.
When to hire in Indonesia without setting up a company
You want to hire before you incorporate. Establishing a foreign-owned company (PT PMA) takes time and capital. An EOR is much faster.
You are testing. One salesperson for a year tells you whether Indonesia works.
You have a team here and no need for an entity yet. We employ teams this way too, and we flag when your own entity becomes the cheaper route.
What to know before you use an EOR in Indonesia
You direct the work; we employ. Through EOR, the foreign client does not employ anyone in Indonesia itself. MAM is the legal employer, and we look at each client’s activities in Indonesia so the arrangement stays that way. The tax side of this is permanent establishment.
Indonesian employment law protects employees. Termination is more constrained and more expensive than in many markets. We agree what ending an employment would cost before you hire.
This need not be permanent. Ask early how moving to your own company works.
The HR platform your team uses
MAM is an HReasily partner; on EOR engagements your team can use its phone app for leave, claims and payslips.
EOR or your own company (PT PMA)
| EOR | Own PT PMA | |
|---|---|---|
| Employer | MAM | Your company |
| First hire | About a week for a local employee | After the company is set up |
| Capital | No company needed first | At least IDR 2.5 billion paid up |
Once you have a company, payroll does the same work at a lower cost. See how the two routes compare.
Why us
Why MAM for Employer of Record
- Employment, payroll and tax from one firm
The entity that employs your staff also runs their payroll, PPh 21 and BPJS in-house — no chain of providers between you and the person on your team.
- Your staff in their own language
The team works in English, Bahasa Indonesia, Urdu and Tamil, so an employee query is handled directly rather than translated through you.
- A regulated firm as employer
MAM is led by ACCA members and registered with IAPI. The legal employer of your staff is a regulated professional firm, not a labour intermediary.
- Your staff can serve themselves
Your staff can be given the HReasily platform, so leave, claims and payslips are handled on their phones instead of travelling back to you in another country. You choose how much of it to use.
Credentials
Qualified, and accountable for it
MAM's work is done by qualified accountants and carried out to the standards of these professional bodies — not by a general administrator following a checklist.
Led by members 
Registered 
Member 
Through ACCA 
Partner Reviews
What clients say
We have engaged many business consultants in past and MAM Corporate Solutions is by far among the most informed and professional business consultants as per our experience. They have helped us with various services such as tax compliance, company incorporation and business valuations and every time they have exceeded our expectations.
MAM Corporate Solutions offers great services! All the team makes all the incorporation process very clear, and always takes the time to explain every step of the way in details. They are fast and efficient, and always make sure they find the solution that's most adapted to your need. I could not recommend them enough!
MAM Corporate Solutions provides us accounting service on Xero. They have always kept our records up-to-date and we are happy with their service.
Questions
What people ask us
Is there a minimum number of employees, and what do you need to quote?
There is no minimum. To quote, we need the number of people, local or expatriate, where and for how long, the start date, the job title and the salary.
How quickly can an EOR employee start in Indonesia?
A local employee can usually be onboarded within a week: the agreement is signed, then they are registered with BPJS Health and BPJS Manpower.
What is the notice period to end the arrangement itself?
Generally one month, unless we agree otherwise.
What does an employer of record cover for the employee?
Registration with BPJS. Private health cover is not part of the standard arrangement.
What happens to EOR employees when we set up our own company?
They transfer from us to your company. The legal employer changes, and the new employment agreement recognises their previous service.
Is using an EOR legal in Indonesia?
Indonesian employment law places its duties on the employer, and without your own company here the employer of record is that employer. See what makes it a genuine employer.
Is an employer of record the same as a PEO?
The names are often used for the same service, hence both on this page. Strictly, a PEO shares the employer’s role with a client that has its own company; see EOR vs PEO.
Can you employ an expatriate through an EOR?
Yes. We are the employer, so we sponsor the work and stay permit, which is processed before the person starts. See hiring a foreign employee.
Goes with this
Often needed alongside this
Work permit KITAS
A work permit KITAS for your foreign staff: RPTKA through to the stay permit, as one process.
Personal tax
Personal tax Indonesia returns and advice, for expatriates and for business owners.
HR consulting
HR consulting Indonesia employers can use: agreements, handbooks, BPJS registration and advice.
Compare
Or consider instead
These do a similar job in a different way. Most people choose one, not both.
Foreign Company (PT PMA)
A PT PMA is the foreign-investment company: up to 100% foreign ownership, subject to your KBLI.
Payroll
Payroll services Indonesia employers rely on — accurate, on time, every statutory deduction handled.
Talk to someone who does this every day
A free 30-minute call. Bring the situation you are actually in, and you will leave with a clear view of what is involved.