| JKM (life insurance)<\/td> | 0.3% (employer only)<\/td> | \u2014<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Catatan: <\/strong>From July 2025, the Standard Inpatient Class System (KRIS) replaced Bali’s previous BPJS Health three-tier class structure, regulated under Presidential Regulation No. 59\/2024. <\/em><\/p>\n\n\n\nTHR: Annual Religious Holiday Allowance<\/h3>\n\n\n\nEmployers in Indonesia are legally required to pay a 13th-month salary called THR (Tunjangan Hari Raya). This is calculated at one month’s salary for employees with at least 12 months of service, paid before the employee’s major religious holiday.<\/p>\n\n\n\n Severance Pay: Pesangon<\/h3>\n\n\n\nSeverance entitlements under Indonesian law are calculated based on years of service. One month’s salary is owed per year of service, with long-service pay applying separately after three or more years.<\/p>\n\n\n\n Indonesia’s severance framework is governed by Government Regulation No. 35 of 2021 (PP 35\/2021), the implementing regulation under the Omnibus Law. Foreign employers must apply this framework when ending any employment relationship.<\/p>\n\n\n\n Tips Profesional: <\/strong>Under the latest BPJS Ketenagakerjaan update (PP No. 6 of 2025), employees affected by termination are entitled to Job Loss Insurance (JKP) benefits equal to 60% of wages for up to six months. <\/em><\/p>\n\n\n\nThe 2026 Regulatory Landscape: What Is Changing<\/h2>\n\n\n\nIndonesia’s labour regulatory environment is actively evolving in 2026. Foreign employers need to stay current, as changes can affect contract validity, wage obligations, and compliance timelines.<\/p>\n\n\n\n Manpower Law Revision in Progress<\/h3>\n\n\n\nFollowing Constitutional Court Decision No. 168\/PUU-XXI\/2023, the Indonesian legislature is required to revise and separate the Manpower Law from the Omnibus Law. This revision was included in the National Legislative Programme (Prolegnas) at the end of 2025 and is expected to be enacted in 2026. <\/p>\n\n\n\n The revised law is expected to restore several worker protections, including maximum duration limits for fixed-term contracts. Foreign employers using PKWT arrangements should monitor this development closely.<\/p>\n\n\n\n SIAPkerja: Digital Manpower Compliance Platform<\/h3>\n\n\n\nSince May 2025, the Ministry of Manpower’s SIAPkerja platform is now mandatory for participation in job fairs and employment programmes. This platform integrates employment data nationally and is part of Indonesia’s broader move toward a centralised, digital-first compliance ecosystem. <\/p>\n\n\n\n Anti-Discrimination Recruitment Rules<\/h3>\n\n\n\nThe Ministry of Manpower issued Circular Letter No. M\/6\/HK.04\/V\/2025 prohibiting discrimination in worker recruitment. Employers are expressly prohibited from withholding employee documents, restricting worker mobility, or setting discriminatory employment terms.<\/p>\n\n\n\n The Bali Talent Market: What Roles Are Realistically Available<\/h2>\n\n\n\nBali’s talent pool has matured significantly. It is no longer limited to hospitality and tourism. A growing number of Bali-based professionals work in digital and professional service roles for international clients.<\/p>\n\n\n\n Sectors with Strong Local Talent Depth<\/h3>\n\n\n\n\n- Digital marketing and social media management<\/li>\n\n\n\n
- Graphic design, video editing, and creative production<\/li>\n\n\n\n
- Customer support and virtual assistance<\/li>\n\n\n\n
- Content writing and copywriting (English proficiency is strong in urban areas)<\/li>\n\n\n\n
- Web development and basic software support<\/li>\n\n\n\n
- Hospitality, villa management, and tourism operations<\/li>\n\n\n\n
- Accounting and bookkeeping (familiar with Indonesian tax frameworks)<\/li>\n<\/ul>\n\n\n\n
Hiring Indonesian employees without entity registration is particularly common in these sectors, where remote-first workflows are already the norm. Many international companies choose to hire remote employees in Indonesia precisely because Bali\u2019s digital infrastructure in areas such as Canggu, Seminyak, and Sanur supports seamless cross-border collaboration.<\/p>\n\n\n\n What Bali Does Not Yet Offer in Depth<\/h3>\n\n\n\nDeep engineering roles, advanced data science, and specialised legal or regulatory advisory capacity remain harder to source locally. Companies hiring for these roles often look to Jakarta, Bandung, or Surabaya instead.<\/p>\n\n\n\n Tips Profesional: <\/strong>Indonesian professionals prefer working with international employers that invest in personal growth and respectful management. A clear onboarding process, structured feedback, and defined career pathways go a long way in retaining local talent.<\/em><\/p>\n\n\n\nHow Foreign Companies Are Structuring Their Bali Teams<\/h2>\n\n\n\nThe most common pattern among foreign companies currently hiring in Bali involves a small, locally-based team handling execution while strategic decisions remain with the head office abroad. This model is especially prevalent among agencies from Australia, the UK, Singapore, and the US.<\/p>\n\n\n\n Timezone Advantage<\/h3>\n\n\n\nBali operates on WITA (Central Indonesian Time, UTC+8). This aligns closely with Australian Eastern Standard Time (UTC+10) and Australian Western Standard Time (UTC+8), making real-time collaboration between Bali teams and Australian offices straightforward.<\/p>\n\n\n\n For Singapore-based companies (UTC+8), Bali operates in the same timezone. For UK and European companies, Bali presents a useful asynchronous overlap with working hours in the morning.<\/p>\n\n\n\n Typical Team Structures<\/h3>\n\n\n\n\n- Agency model: <\/strong>A foreign creative or digital agency hires Bali-based staff for design, content, or social media, while account management and strategy stays in the home market.<\/li>\n\n\n\n
- Remote staffing Bali: <\/strong>Startups hire one to three Bali-based professionals to build operations capacity before committing to a full entity setup.<\/li>\n\n\n\n
- Operational hub: <\/strong>Companies with established PT PMAs in Indonesia use Bali as a secondary operational base, particularly for client-facing or tourism-adjacent services.<\/li>\n<\/ul>\n\n\n\n
Cultural Considerations<\/h3>\n\n\n\nBalinese professionals value structured working relationships with clear communication, respectful management, and genuine investment in their development. Religious and cultural observances are an important part of working life and should be reflected in leave policies and THR timing.<\/p>\n\n\n\n Bahasa Indonesia is the official language and the legally required language for employment contracts. Many professionals in Bali’s urban and creative sectors are comfortable working in English, especially in international company settings.<\/p>\n\n\n\n Common Problems Foreign Employers Face Without Local Support<\/h2>\n\n\n\nMany foreign companies underestimate the complexity of Indonesian employment compliance until they encounter a problem. The most common issues are not intentional; they stem from unfamiliarity with how Indonesian labour law actually works in practice.<\/p>\n\n\n\n The Most Frequent Compliance Gaps<\/h3>\n\n\n\n\n- Paying staff as freelancers without formal contracts, triggering retroactive BPJS and tax liabilities<\/li>\n\n\n\n
- Using English-only employment contracts, which are not legally binding under Indonesian law<\/li>\n\n\n\n
- Applying home-country payroll logic to Indonesian wage structures, leading to underpayment<\/li>\n\n\n\n
- Missing THR payment deadlines, which are legally mandated before each employee’s major religious holiday<\/li>\n\n\n\n
- Miscalculating severance when parting ways with a staff member, resulting in disputes<\/li>\n\n\n\n
- Failing to update wage rates when new UMK decrees are issued, typically each December or January<\/li>\n<\/ul>\n\n\n\n
These gaps are not unique to small companies. Even established international firms have encountered compliance disputes in Indonesia when operating without proper local legal and HR infrastructure in place.<\/p>\n\n\n\n Catatan: <\/strong>The Ministry of Manpower’s SIAPkerja platform now serves as a centralised compliance record. Companies without proper registration are increasingly visible to regulators.<\/em><\/p>\n\n\n\nWhere Business Hub Asia Fits In<\/h3>\n\n\n\nBusiness Hub Asia supports foreign companies navigating Indonesia’s employment requirements from the ground up. The team provides guidance on the right entry structure (EOR or PT PMA), manages employment contracts compliant with Indonesian law, handles BPJS registration, and oversees payroll compliance in Indonesia, including monthly IDR processing and PPh 21 withholding.<\/p>\n\n\n\n For companies that want to move fast without the risk of getting compliance wrong, having a locally rooted team with deep knowledge of Indonesian regulatory requirements is the practical alternative to building that expertise from scratch.<\/p>\n\n\n\n Summary: What to Take Away<\/h2>\n\n\n\nBali offers a genuine and growing opportunity for foreign companies looking to build remote teams or operational capacity in Southeast Asia. The talent is available, the timezone alignments are practical, and the regulatory pathway is clear, provided it is followed properly.<\/p>\n\n\n\n The key is understanding that employing someone in Bali is not informal. It requires compliant contracts in Bahasa Indonesia, mandatory BPJS enrolment, correct wage levels, and proper payroll handling. An Employer of Record structure makes this achievable without needing a full entity setup.<\/p>\n\n\n\n Key Takeaways at a Glance<\/strong><\/p>\n\n\n\n\n- Australia, India, the USA, the UK, Singapore, and Germany are among the most active foreign markets in Bali<\/li>\n\n\n\n
- Bali’s 2026 provincial minimum wage is IDR 3,207,459 per month (Bali Governor’s Decree No. 1021\/03-M\/HK\/2025)<\/li>\n\n\n\n
- Employment contracts must be in Bahasa Indonesia to be legally binding<\/li>\n\n\n\n
- BPJS registration is mandatory for all formal employment relationships in Indonesia<\/li>\n\n\n\n
- Indonesia’s Manpower Law is undergoing legislative revision in 2026, creating added importance for staying compliant<\/li>\n\n\n\n
- EOR is the fastest and most practical route for foreign companies wanting to hire in Bali without a local entity<\/li>\n\n\n\n
- PT PMA is the right structure for long-term, larger-scale operations with full operational control<\/li>\n<\/ul>\n\n\n\n
For foreign companies weighing their options, the starting point is always the same: understand the structure before making the hire. Getting this right from day one protects both the business and the employees who depend on a compliant working arrangement.<\/p>","protected":false},"excerpt":{"rendered":" Bali has steadily grown into one of Southeast Asia’s most attractive destinations for foreign professionals, startups, and business operators. For many international companies looking to hire employees in Bali, the opportunity is real, but so are the legal responsibilities that come with it. This guide walks through what foreign companies need to know: from Indonesian […]<\/p>\n","protected":false},"author":16,"featured_media":8860,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[96,14],"tags":[],"country":[9],"service-category":[55],"class_list":["post-8852","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employer-of-record","category-guides","country-indonesia","service-category-office-business-support"],"acf":[],"_links":{"self":[{"href":"https:\/\/businesshubasia.com\/id\/wp-json\/wp\/v2\/posts\/8852","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesshubasia.com\/id\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesshubasia.com\/id\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesshubasia.com\/id\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/businesshubasia.com\/id\/wp-json\/wp\/v2\/comments?post=8852"}],"version-history":[{"count":1,"href":"https:\/\/businesshubasia.com\/id\/wp-json\/wp\/v2\/posts\/8852\/revisions"}],"predecessor-version":[{"id":8861,"href":"https:\/\/businesshubasia.com\/id\/wp-json\/wp\/v2\/posts\/8852\/revisions\/8861"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesshubasia.com\/id\/wp-json\/wp\/v2\/media\/8860"}],"wp:attachment":[{"href":"https:\/\/businesshubasia.com\/id\/wp-json\/wp\/v2\/media?parent=8852"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesshubasia.com\/id\/wp-json\/wp\/v2\/categories?post=8852"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesshubasia.com\/id\/wp-json\/wp\/v2\/tags?post=8852"},{"taxonomy":"country","embeddable":true,"href":"https:\/\/businesshubasia.com\/id\/wp-json\/wp\/v2\/country?post=8852"},{"taxonomy":"service-category","embeddable":true,"href":"https:\/\/businesshubasia.com\/id\/wp-json\/wp\/v2\/service-category?post=8852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} |