Employer of Record

Employer of Record Services without a Hassle

Indonesia is not just rich in cultural aspects and natural beauty. It is also home to untapped potential from its talented and relatively affordable workforce with diverse on-demand skills, especially in the tech industry.

Expand your business globally, tap into Indonesia’s talent pool, and hire more capable talents to get things done efficiently.

female_EOR

Are You and Your Company Facing One of These Challenges?

  • Want to enter the Indonesian market but prefer to continue to lead operations from your home country or main jurisdiction and are unclear on the legal rules;
  • Need to enter the Indonesian market quickly and have no time to establish an entity in Indonesia; especially with the legal complexity this brings
  • Do not have the financial and internal resources required to establish an entity in Indonesia; or
  • Only want to hire a few employees for project-based work, but you’re wary of working with freelancers, and the full-on corporate hiring package is out of your scope.

An Employer of Record (EOR) might be the right fit for your company!

Employer of Record (EOR) in Indonesia

Employer of Record (EOR) services allow your company to legally hire Indonesian employees without having to set up a local entity or risk violating Indonesia’s employment law.

Livit provides EOR services in partnership with PT. Solusi Pragmatis Indonesia, led by Senior HR & Indonesian Operations Consultant, Delvy Gusmiranto. Delvy’s strong business development background is evident in his experience working with fast-growing companies like AirAsia, Traveloka, Astronaut & more.

Combining Livit’s track record in helping kickstart businesses and startups and Delvy’s extensive experience in the human resources industry, we bring a unique perspective to the field and ensure you hire the right talents for your company.

Reasons to Use Employer of Record (EOR) Services

The main reasons to use Employer of Record (EOR) services are:

Time-effective

If you are under time constraints, EOR is a good solution for you. Usually, a local entity is required to hire employees in Indonesia. Setting up a local entity and securing all the right business permits and licenses before hiring can take as long as 6 months to process.

With Livit EOR service, you're ready to hire in just around 2-5 days after all the agreement is set up and payment is made.

Stay compliant

You prefer to fully or partially outsource your HR to ensure full compliance with Indonesian workforce regulations, which provides you with a sense of security and confidence.

Cost-saving

The Employer of Record can be much more cost-effective, especially since you don't have to establish a company in Indonesia and manage your own full-on HR team.

The administrative cost of setting up a company in Indonesia starts from USD 2,500 and involves a hefty investment of time and resources to understand the local tax, payroll, and employment laws when it's time for hiring. Livit EOR services can slash administrative costs by more than 80%.

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We Can Help You With:

  • Legally employing both local and foreign citizens;
  • Running payroll;
  • Paying employee taxes;
  • Paying social security contributions;
  • Preparing necessary legal documents, including work agreements;
  • Sponsoring work permits for foreign workers in Indonesia; and
  • Ensuring all employees work compliantly in Indonesia by following all workforce, immigration, and tax laws and regulations.

How We Work

Step 1

Initial Call

We  discuss the setup in detail and get to know about your team and business needs.

Step 1

Step 2

Proposal

We prepare a proposal based on your needs, including a budget and proposed timeline.

Step 2

Step 3

Talent Market Test

After you agree with the proposal, we will conduct a targeted talent market test and provide accurate estimations of salary ranges for the roles you’re interested in hiring.

Step 3

Step 4

Source and Screen Process

We help you find candidates with the right skills and experience.

Step 4

Step 5

Take care of the paperwork

We prepare all the documents, including employment contracts.

Step 5

Step 6

Start employing

The new hires officially become your employees and Livit serves as your local HR department.

Step 6

Ready to Tap into Indonesia's Talent Pool?

Let us handle the complexities of hiring so you can focus on growing your business. Tell us about your hiring needs and we'll be in touch to discuss how our Employer of Record services can help you expand your team

Employer of Record FAQs

The short answer is yes, but doing so either requires you to open your own legal entity in Indonesia or hire the workers as contractors. Both strategies have their pros and cons.

If you open your own legal entity, you will be responsible for managing your entire operation in the country. That means hiring attorneys, payroll specialists, benefits administrators, and other professionals. If you want to hire hundreds of Indonesians, this might make sense. But if you own a small-to-medium scale business and want to test the water by hiring talents from Indonesia, an EOR is way more cost and time-effective. 

 

Hiring workers as contractors demands vigilance. International contractor misclassification is a serious issue that can result in significant fines and penalties. Using an EOR shields your business from potential compliance risks by ensuring workers are fully established employees.

The highest level of legal compliance is typically offered by EORs that own business entities in the countries you want to hire. If you’re going to tap specifically into Indonesia’s talent pool, working with an established and trusted EOR services provider in the country is the best option.

Before you start working with an EOR, ensure they own a local entity and have the necessary expertise to properly manage locally all the payroll, health benefits, taxes required, and any other benefits or compensation you might offer, such as stock options.

PT Solusi Pragmatis Indonesia, Livit’s partner, will be fully responsible as the legal employer. The whole process is done transparently in-house at Livit, and we have complete legal control over your potential candidate’s hiring and employment process.

We have over a decade of experience running startup studios, launching tech and digital projects, and hiring people. We have supported 50+ companies in Indonesia and globally, facilitated 350+ hires, built more than 20 teams, and our portfolio companies raised over $150M in funding. 

Technically, yes. One thing you should pay attention to, though, is making sure you don’t commit employee misclassification. Misclassifying an employee is defined as when a worker is being treated and taxed as a freelancer but is being engaged by your company as an employee. A proven act of employee misclassification can lead to hefty fines, penalties, and legal issues.



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