Employer of Record (EoR) Service in Indonesia is quite popular with people who want to open a company in Indonesia. Setting up and managing a business in Indonesia has several challenges that are different from those in your home country.

By using Employer of Record (EoR) Service as an International Staffing Solution you can reduce the administrative burden, because you entrust it to those who understand local culture. As well as risk mitigation, because Employer of Record (EoR) companies in Indonesia have good enough networking so they understand the regulations properly.

Before discussing the Best Service for Employer of Record (EoR) in Indonesia.

 

What is an Employer of Record Service?

If Citing an Article Abhitech, An Employer of Record (EoR) is a service provider that takes on the responsibility of being the legal employer for your employees in a foreign country, in this case, Indonesia.

This means they handle payroll, benefits, tax compliance, and HR-related matters on your behalf. Employer of Record (EoR) allow you to have a local workforce and establish a legal entity without the complexities and risks associated with direct employment.

This is also similar to According to adp.com An employer of record is a third-party provider that is legally responsible for another organization’s employees. It can be located within the same country as the business it employs workers for or in another country with different employment laws.

And also OyesterHR An employer of record (EOR) is an entity that legally employs workers on behalf of another business. An EOR takes full responsibility for all aspects of employment including compliance, payroll, taxes, and benefits. 

In essence, Employer of Record (EoR) Service will help you manage global hiring, payroll taxes, compliance risks, and so on in Indonesia.

➡ Take a look at the minimum capital requirements for setting up a business in Indonesia

 

What Does an Employer of Record (EOR) Do?

1. Payroll and Benefits Management: An Employer of Record (EOR) service will help you with all aspects of payroll, ensuring your talent gets paid appropriately and on time. They will also provide benefits, such as health insurance, training costs, and so on according to the contract.

2. Tax Compliance: No need to be confused about taxes anymore. Employer of Record (EOR) Service will help you take care of all taxes according to country regulations. Starting from payments, deductions, to returns if you. So your company will be safe from “Directorate General of Tax” or Indonesian Tax Authority.

3. Legal Compliance: The business you just opened in Indonesia will be ensured to comply with applicable labor laws and labor regulations.

This includes creating and managing work contracts, processing work permits, and formalities such as visa requirements. By using Employer of Record (EOR), your company does not need to worry about legal compliance because Employer of Record (EOR) will take care of all these aspects.

➡ Check all document required for business registration in Indonesia here

4. HR Support: Providing human resources (HR) services which include the recruitment process, new employee orientation (onboarding), and employee relations management. This means Employer of Record (EOR) will help in finding and recruiting the right talent, ensuring new employees get a good introduction to the company, as well as managing the relationship between the company and employees to maintain a harmonious and productive work environment.

➡ Learn all the essential roles of Employer of Record here.

 

How to Choose The Best Employer of Record (EOR) Service in Indonesia

we saw from several websites such as Playroll, Velocity Global, Just Works Lots of things that must be considered when looking for the Best Employer of Record (EOR) Service but that is in an international context. 

Therefore we have adapted several sections for you foreign companies who want to open a company in Indonesia.

1. Local Expertise
   

   All the references you read on the Internet will suggest that the Employer of Record (EOR) Service has global capabilities. However, you yourself know that the reason for using Employer of Record (EOR) Service is to help your company at the local stage.

   It would be better if you collaborate with Employer of Record (EOR) Service in Indonesia which has expertise in Indonesia itself. Employer of Record (EOR) with global expertise is a generalist, but Employer of Record (EOR) with local expertise is a specialist.

   According to Emeritus Those who specialize: Expertise in Area of Specialization: As mentioned above, specialists focus on any domain, and subject-specific expertise gaps are more difficult to fill.

2. Track Record
   

   Make sure your Employer of Record (EOR) Partner has good work experience. Choose a partner for Employer of Record (EOR) with a good track record and proven experience working with various companies.

   In fact, by reading this article you will understand the importance of a track record.

3. Service Responsiveness

   Currently, many services use artificial intelligence to respond to their customers. According to the website CXlead.com There are at least 32 best AI Chatbots for customer service.

   Indeed, using artificial intelligence to respond to customers can help because it is much faster. But not for those of you who have specific questions.

   It would be more helpful if you worked with a company that uses chatbots for general questions but still has contacts you can contact for more specific questions.

4. Range of Services

   Working with a vendor will make things easier for you. However, working with many vendors can actually be confusing. We recommend looking for a partner who has a wide range of services so that when your business grows they can still help you.

5. Compliance Expertise
   

   This is still related to the track record, the reasons why choosing a local partner is better. They definitely understand more about compliance in Indonesia, even if you are looking for specific cities such as Employer of Record (EOR) for companies in Jakarta, Employer of Record (EOR) for companies in Bali, and Employer of Record (EOR) for companies in Batam. 

   Those who control the local area will understand the area’s compliance much better and have good networking so they can work more efficiently.

6. Technology Integration

   Even though we recommend working with those who have real support, not just AI or chatbots for customer service, we also recommend that you work with partners who have integrated HR technology because that will make it easier for you to work.

7. Data Security and Privacy Compliance
   

   Make sure they can take good care of your data. Is your employee data safe? It is important not to violate the enactment of Law No. 27 of 2022 concerning Personal Data Protection (“PDP Law”) which is similar to the General Data Protection Regulation (GDPR).

8. Cost Structure and Transparency
   

   Don’t be fooled by cheap prices. Because many services are naughty, offering cheap prices but not being transparent. So, when the project is running they will ask for an additional fee for the same service, in the end you end up paying more than you should.

 

Reviews of the Best Employer of Record Services in Indonesia

Basically, Employer of Record (EoR) is your local partner to establish a business in Indonesia.

Do you need a local parter in Indonesia? No local partner required but must comply with local regulations. Read more here

So, which is the best Employer of Record (EOR) Service in Indonesia for International Employment Outsourcing?

After we did our research, there is no exact matrix to describe the best employer service in Indonesia or even globally.

So, our recommendation list is those who have 8 points from How to Choose The Best Employer of Record (EOR) Service in Indonesia above

1. Abhitech

If you are looking for an Employer of Record (EOR) Service that meets local needs then Abhitech is the answer. 

More than 30 years of experience in the Indonesian HR industry. Yes, 30 years.

From this experience, it is clear that Abhitech really understands regulations in Indonesia, recruiting the best employees who suit your company, and Managing the Global Workforce, including payroll, benefits, administration, etc.

 

source: Abhitech

2. Oyster HR

image: Oyester HR

Oyster HR is an Employer of Record service for managing HR processes in 180+ Countries including Indonesia. 

They have the claim “Hire based on talent, not a location”. This can help you to hire global talent, pay global talent, and keep them by providing the right benefits. 

While Oyster HR has a broad global reach and offers services in over 180 countries, they lack the in-depth expertise in local Indonesian regulations and culture that Abhitech does.

3. Deel

Image: Deel

Deel is one of the largest Employer of Record service companies and can help you on a global scale. Getting 4,000+ reviews from the site Trust Pilot proves that Deels is suitable to help you on a global scale.

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Websites like People Managing People “Deel Best Employer of Record (EOR) service for managing global hiring, payroll taxes, and compliance risks”

but for the Indonesian context Deel the largest Employer of Record Services, lacks in-depth expertise in local Indonesian regulations and the culture of local service.

Conclusion

You can choose to work with anyone as an Employer of Record (EOR) Service partner on a global stage. However, if you need those who have local understanding in Indonesia then Abhitech is most suitable to help you.

If you want to ask Abhitech for more details, you can contact Abhitech here.