Employer of Record Indonesia. Hire and Pay Staff without a Local Entity
Our EOR service lets you hire local or foreign talent legally and quickly, without registering a PT PMA. Payroll, BPJS, tax, and work permits are fully managed as part of your PEO service engagement.
One Employment Partner
PEO service, payroll, immigration, and tax under one roof
Multi-Sector Experience
Professional services, technology, manufacturing, and logistics
Indonesia-Focused
Primary coverage in Indonesia, with a regional network supporting placements in Singapore and Vietnam
Three Ways Companies Use Our EOR Solutions
Regardless of your specific situation, a single EOR service in Indonesia handles everything, eliminating the need to manage different vendors for each phase of your market entry.
01
Foreign Companies Without a PT PMA
Start hiring in Indonesia before your entity registration is even filed. Business Hub Asia becomes the legal employer while you keep full control of your team's daily work.
02
Companies Hiring Indonesian Talent
Add local employees without opening a new legal entity or building an in-house HR function from scratch. Payroll, BPJS, and tax filing are handled for you.
03
Teams Testing the Market
Validate demand in Indonesia before committing to a permanent setup. Scale from one hire to a full team, then transition to your own entity when you are ready.
Indonesia's Employment Rules Are Not Simple to Navigate Alone
Hiring in Indonesia means working within Indonesian Labour Law as amended by the Job Creation Law (UU Cipta Kerja), mandatory BPJS social security enrollment, PPh 21 tax withholding, and outsourcing regulations that continue to evolve. Getting any part wrong can mean fines, back payments, or a contract that does not hold up if an employee dispute arises. This is why so many companies choose an HR outsourcing partner instead of building compliance in-house, and that is exactly the gap our EOR solutions are built to close.
What Business Hub Asia Handles as Your EOR Service Partner
A full-scope EOR service, so nothing sits half-managed between you and a second vendor. The four core areas below each have their own dedicated specialists.
Payroll and Tax, Done on Time
Monthly payroll, PPh 21 withholding, and reporting handled on schedule, every time.
BPJS Ketenagakerjaan and Kesehatan
Every employee registered and contributing correctly from day one.
Work Permit and KITAS for Foreign Hires
Foreign employees sponsored and supported through the full immigration process.
SPT Tahunan for Local Hires
Annual personal tax filing managed for your Indonesian employees.
Employment Contracts Built for Indonesian Law
Every contract is structured to meet Indonesian labour requirements, so you are never exposed to a disputed or invalid agreement.
Ongoing HR and Compliance Support
As regulations change, your contracts and processes are updated to stay compliant, not just set up once and left alone.
Two Employment Paths, One Partner
Both paths are covered under the same engagement, so you are not managing two vendors for one team.
Hiring a Foreign Employee
- Business Hub Asia sponsors the Work Permit and KITAS application
- Payroll and tax withholding managed as legal employer
- Full immigration follow-up until permits are issued
Hiring a Local Employee
- BPJS Ketenagakerjaan and Kesehatan registration from day one
- PPh 21 withholding and monthly payslip reporting
- SPT Tahunan annual tax filing managed on your behalf
Hiring both foreign and local employees? Business Hub Asia manages both paths under a single engagement.
From Signed Agreement to Operational Team in 2 to 4 Weeks
A structured engagement with one point of contact throughout.
1
Consultation and Scoping
2
Contract and Registration
3
Payroll and Compliance Setup
4
Team Operational
What It Actually Takes to Hire in Indonesia, With and Without EOR
Business Hub Asia does not publish flat pricing here, because every engagement depends on headcount and hire type. What we can show clearly is the effort and risk EOR removes.
Building It Yourself
- Register a PT PMA first: typically weeks to months, plus paid-up capital requirements
- Build or outsource your own payroll and tax function
- Track BPJS, PPh 21, and labour law changes in-house
- Sponsor Work Permits and KITAS directly through your own entity
- Full legal and compliance exposure sits with your company
With Business Hub Asia as Your EOR
- No entity required to start hiring
- Payroll, PPh 21, and BPJS handled by a licensed local employer
- Work Permit and KITAS processed for foreign hires
- Compliance risk sits with Business Hub Asia as the legal employer
- Operational in 2 to 4 weeks
The trade-off is straightforward: building your own compliance function takes time, capital, and risk. EOR gets you the same legal outcome without the setup.
How Companies Like Yours Use EOR in Indonesia
Representative examples of how our EOR service is used across industries.
Site Team Before Entity Registration
A manufacturing group expanding from Australia needed a site team in Indonesia before its PT PMA was finalized. Business Hub Asia onboarded the initial hires as EOR, so the team was working on the ground while entity registration was still in progress.
Market Testing Without an Entity
A Singapore-based technology company wanted to test the Indonesian market with a small local team before deciding on a permanent office. EOR let them hire, pay, and manage local staff without opening an entity first.
Foreign Specialists, One Engagement
A regional logistics operator needed to deploy two foreign specialists into its Indonesia operations. Business Hub Asia managed their employment, payroll, and KITAS sponsorship as part of a single EOR engagement.
When EOR Makes Sense, and When to Register Your Own Entity
EOR is built for speed and a lower upfront commitment: no entity, no paid-up capital, and a working team in weeks. Once your Indonesian operations reach a stage where you need a permanent local presence, your own brand on contracts, or a broader scope of licensed activity, registering a PT PMA becomes the better long-term structure.
Business Hub Asia supports that transition directly, including moving your EOR employees onto your own entity's payroll without disrupting their employment. Explore our Company Registration service to see what that path involves.
Questions Decision Makers Ask About Their HR Outsourcing Partner in Indonesia
Do we need a registered company in Indonesia to use an EOR service?
No. That is the core advantage of an Employer of Record Indonesia solution. Business Hub Asia acts as the legal employer on your behalf, so your team can start working while your own entity registration is still in progress, or before you decide whether to register one at all.
What is the difference between EOR and PEO services?
A PEO co-employs staff alongside your own registered entity, so you still need a PT PMA. An Employer of Record is the sole legal employer, which means no local entity is required at all. Business Hub Asia offers both EOR and PEO service structures depending on where you are in your Indonesia market entry. Read more in our guide on PEO services vs. Employer of Record in Indonesia.
How long does EOR onboarding take in Indonesia?
Most engagements are operational within 2 to 4 weeks of confirmation, covering employment contracts, BPJS registration, payroll setup, and Work Permit or KITAS processing for foreign hires.
What happens to a foreign employee's Work Permit and KITAS under EOR?
Business Hub Asia sponsors and manages the full Work Permit and KITAS application as the legal employer, including document preparation, submission, and follow-up with the relevant Indonesian authorities.
Can we transition our EOR employees to our own PT PMA later?
Yes. Business Hub Asia supports the full transition, including company registration and restructuring the employment relationship from EOR to direct employment under your own entity.
Who carries the legal and compliance risk under an EOR arrangement?
As the legal employer, Business Hub Asia carries the compliance obligation for contracts, payroll, tax withholding, and BPJS registration. You retain full operational control over your employees’ day-to-day work. For a deeper breakdown, see EOR Compliance Indonesia 2026.
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