Hire the best talent fast via an employer of record in Indonesia

Indonesia is the biggest economy in Southeast Asia, which has grown rapidly since the turn of the century and boasts a growing middle class and pool of skilled talent. For anyone looking to hire local professionals, contracting them through an employer of record in Indonesia could be a good option.

Because when you hire staff through an employer of record (EOR), those staff are officially employed by the provider, but report directly to you. Meaning you can have professionals in place in only the time it takes to find them, and without needing to worry about setting up your own local entity.

Your employer of record in Indonesia will take care of their, onboarding, payroll, other administrative matters, and eventual offboarding, providing a guarantee of compliance with all local regulations as part of the services agreement.

Meaning that you can operate safe in the knowledge that no legal inconveniences or unexpected financial penalties for non-compliance are going to arise.

With your employer of record in Indonesia taking care of the salaries, benefits, leave, and other concerns related to those professionals, your only focus will be on what matters most: the business.

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Note that an EOR is often referred to as a professional employer organization (PEO), with many providers using the two terms interchangeably.

In the United States, however, PEO and EOR are generally treated as different services, with PEO essentially referring to outsourced HR services that still require the client to have an entity through which people are hired, while EOR involves the provider hiring them through its own entity.

Indonesia's economic growth has been consistently impressive, with GDP increasing sevenfold since the turn of the century to hit US $1.19 trillion in 2021.

That figure by GDP, and makes it the biggest economy in the Southeast Asian trading bloc ASEAN. Indonesia is also the fourth most populated country in the world, with a population of over 270 million people.

The country's strategic location at the heart of Southeast Asia, as well as its abundance of natural resources, has enabled Indonesia to excel in international trade, with China, Japan, the United States and ¿South Korea among as its main trading partners outside of ASEAN.

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Being the world's largest archipelago, Indonesia has a massive fishing industry, as well as being rich in natural resources such as oil, tin, natural gas, rubber, nickel, copper, coal, gold, and silver.

Indonesia accounts for half the world's production of palm oil within its large agricultural sector and this crop alone accounted for 11% of exports before a 2022 ban on exportation. It's unclear when that will be lifted.

While the country boasts major agricultural and manufacturing economies, the services sector has over the past decade. That is reflective of the fact the country's middle class has expanded significantly over recent years, between 2005 and 2020.

The number of people attending and graduating from university has similarly increased, with an estimated 25% of graduates earning degrees in IT-related fields, making Indonesia an increasingly attractive market for hiring tech talent.

With some projections suggesting that 60 million more Indonesians may join the middle class in the next decade, hiring via an employer of record in Indonesia is an attractive prospect for many companies.

If you are looking to hire via an employer of record in Indonesia, today.

Doing business in Indonesia