G-P Logo
Request a proposal

Hiring & Recruiting in IdIndonesia.






Country Capital



Indonesian rupiah (Rp) (IDR)

When growing your company to Indonesia, you need to ensure you’re prepared to succeed in the local recruiting landscape. Keep these recruiting and hiring best practices in mind as you enter the local market.

Recruiting in Indonesia

Understanding Indonesia’s local employment laws and cultural norms surrounding the hiring process is an important first step. If an employer is noncompliant at any stage throughout the recruitment and hiring strategy, they may face fees and penalties that result in an even lengthier market entry process.

Laws against discrimination in Indonesia

Under Indonesia’s constitution and labor laws, employees are protected against any form of discrimination throughout the hiring process and the course of their employment. Types of discrimination may include unfair treatment based on characteristics including the following:

  • Ethnicity
  • Gender
  • Race
  • Skin color
  • Religion
  • Nationality
  • Origin
  • Political beliefs
  • Disability

Employers should avoid asking candidates questions about any of the above characteristics. If any of these subjects do come up in casual conversation with prospective employees, they must make sure they do not factor them into any hiring decisions.

Indonesia employment laws

Companies must comply with Indonesia’s employment laws, starting with the employment contract. They can use a fixed-term employment agreement as long as it’s written in the official language, Bahasa Indonesia. The contract cannot exceed 2 years, but employers are allowed to extend it for up to 1 year.

Employment contracts can also last for an unspecified period of time. When employers hire an employee in Indonesia under this contract, they should include information regarding compensation, benefits, termination requirements, and more. The contract should also state all compensation amounts in Indonesia rupiah (IDR) instead of another currency.

Once hired, employees generally work a standard workweek of 40 hours, either 8 hours over a 5-day period or 7 hours over 6 days. Overtime is permitted up to 3 hours per day and 14 hours per week, paid at the following rate:

  • 150% of standard pay for the first hour and 200% of standard pay for the subsequent hour for overtime work on a working day
  • 200% to 400% of standard pay for overtime work on weekly rest days and/or national holidays

Onboarding in Indonesia

Indonesia’s laws do not mandate one way to onboard employees, so employers can choose the option that is best for their company. Since negotiations can be complex, it’s best practice to review the agreed-upon employment contract together during the employee’s first day or week.

Many employers also choose to onboard multiple employees at once. This approach will streamline the onboarding process and help new hires integrate within the company culture.

Grow globally with G-P.

G-P never forgets that behind every hire is a human being. That’s why we’ve backed our fully customizable suite of global employment products with our robust team of HR and legal experts, so we can remain at your side, ready to support you as you build your global teams. With the #1 Global Growth Platform, you have the recruitment tools and services you need to find your perfect full-time or contract match.

Contact us today to learn more about how we can help you recruit, hire, and onboard anyone, anywhere.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

Expand in

Book a demo
Share This Guide