Employment regulations in Indonesia have undergone recent updates to ensure better worker protection and to align with evolving labor market dynamics. Generally, they consist of various aspects starting from basic responsibilities, job safety, and even about pension plans. Employment regulation consists of many different rules that govern different aspects of work. This regulation applies from the moment an employee is hired until their working period is completed. 

What are the Employment Regulations in Indonesia?

There are several laws and statutes that regulate employment matters in Indonesia:

1. The Manpower Law or Labor Law Number 13 of 2003, it was most recently amended in 2020 with the formulation of the Job Creation Law or Omnibus Law.
2. Industrial Relations Dispute Settlement Law or IDRS Law Number 2 of 2004.
3. The Employee/Labor Union Law of 2000

In 2021, certain sections of the Manpower Law amendments were proven unconstitutional. As such, the Indonesian government must address these issues within the period of 2 years. In that regard, it is important to note that new updates might arrive in the near future. 

Types of Employment in Indonesia

There are two main types of workers according to the employment regulations in Indonesia: permanent and fixed-term employees. In the case of a verbal agreement, the employer is responsible for providing the employee with an authentic appointment letter that clearly defines the timeline, expectations, and wages offered for the role. Meanwhile, the employment contract with a fixed-term employee is more strict. Employment agreements for fixed-term employees cannot include terms of a probation period. In this type of employment, verbal agreements are invalid. Furthermore, it is important to note that you can only extend the fixed-term employment contracts once. 

Working Hours in Indonesia

According to the Manpower Law, the normal working hours in Indonesia must not exceed seven hours per day, six days per week, and in total 40 hours per week. Female employees who are pregnant with doctor’s advice cannot work between 11 p.m. to 7 a.m. Furthermore, employees are eligible to receive overtime pay after finishing their seventh or eighth hour at work. Overtime policies vary between companies but overtime hours cannot exceed 3 hours per day and 14 hours per week. Overtime pay is worth double the hourly wage of the employee. At the minimum, every employee has the right to get a thirty-minute break after at least four hours of consecutive work. Employees who work five-days a week get Saturdays and Sundays off, while six-day workers get Sundays off. 

How can Double M help?

The government created employment regulations in Indonesia to protect the worker’s rights. With Double M’s help, you will be able to comply with the employment regulations in Indonesia. 

Employer of Record in Indonesia is certainly one of the best solutions for companies that want to begin an expansion. Early start-up period of business is crucial, as you will need to prepare the groundwork for administrative matters such as legal documents, employee recruitment, and tax documentation. All of these things might be too much of a hassle for the companies to handle alone. 

What is an Employer of Record in Indonesia?

An employer of record in Indonesia, commonly known as EOR in Indonesia, is a company or organization that assumes the role of employer for administrative purposes while the employee actually works for a different company, usually abroad.

The company offering their EOR service in Indonesia performs all the tasks and responsibilities of a typical employer on behalf of the original employer. An Employer of Record in Indonesia is hugely popular among companies who are in the early stages of market expansion. 

Why Should You Use an EOR in Indonesia?

By using an EOR Service in Indonesia, you will be able to delegate administrative tasks to a local company of your choosing. They will perform payroll tasks, HR, and other basic tasks while you can still monitor proceedings from your country of origin.

If your company is still in its early stage of expansion, it would be quite the hassle and might also cost a fortune to perform these tasks alone. Having an EOR at your disposal will ensure that your company is in safe hands while you prepare the strategic moves. 

Benefits of Employer of Record Service in Indonesia

There are several benefits of hiring Employer of Record in Indonesia, such as:

1. Transcend Barriers

One of the biggest obstacles of opening up a company overseas is the geographical distance. There are simply too many aspects that you must take care of directly in the intended location. This is where hiring an EOR company in Indonesia would highly benefit you. Using the services of a local EOR company will allow you to start your business right away. 

2. Compliance

Each country you expand to has its own legal, tax, and payroll regulations. With this in mind, it would be much better for you to have local experts. By hiring a local EOR company in Indonesia, you would be in a better position to comply with local regulations. 

3. Time-Efficient

Operating a company, especially in its early stages, is a time-consuming activity. It is even more difficult when you are yet to have personnel stationed in the new country. By using the services of an Employer of Record in Indonesia, you can delegate the preparation tasks. 

4. Cost-Saving

Companies who expand abroad usually use the services of consultants from multiple sectors to perform tasks for them. Typically, EOR companies offer all-in-one services for you so you do not have to contact multiple parties for separate tasks. Paying a one-time fee for all the services is surely the best way to get discounts and better price points. 

5. Risk Management

Establishing a business surely presents a risk in itself, even more so when you are opening one overseas. In order to brace yourselves for these risks, it would be better to have competent, local experts taking care of your business operations until it is properly established.

How can Double M help?

Employer of Record in Indonesia helps your company establish itself in its early stage. Double M offers this service to help our clients get their business up and running.

For our reputation in the EOR industry, RemotePad has placed us on its list of top-tier EOR companies in Indonesia.

Wage Hosting in Indonesia – Establishing a company in Indonesia is a process that could take a substantial amount of time. There are many instances where companies are still being set-up, but they need their operations to begin immediately. If that is the case, you can use Double M as some sort of broker or intermediary, which hires employees on your behalf and pays their salaries under Double M’s company payroll. This type of service is called wage hosting in Indonesia. 

What is Wage Hosting?

By definition, wage hosting is a temporary service which allows Double M to hire employees on behalf of foreign companies wishing to start a business in Indonesia. In most cases, the recruitment process in a wage hosting process is merely a formality. This is because the foreign companies usually have their own candidates. As such, common recruitment procedures like job interviews are no longer necessary. 

What is the Scope of Service?

Since interviews are not necessary, services of wage hosting in Indonesia focus on the administrative side of things such as employment contract drafting, salaries, and potential benefits for the employee. In Indonesia, one unique employment benefit that stands out is BPJS, which is a health insurance for all employees working in Indonesia. In more details, here are the services of wage hosting in Indonesia:

1. General HR support, such as:

• Drafting employment contracts in accordance with the Indonesian labor regulation
• Socialization regarding the latest updates of employment regulation
• HR consultation via email or phone
• Contract or employment termination

2. Calculation and processing of  monthly salary
3. Calculation and deduction of BPJS
4. Calculation and deduction of income tax
5. Registration of BPJS Manpower and BPJS Health
6. Monthly contribution management of BPJS Manpower and BPJS Health
7. Creation and submission of employee’s tax report

What are the Advantages of Wage Hosting?

Using wage hosting in Indonesia is quite a popular choice, since it could potentially bring several advantages such as:

1. Legal Protection

The first advantage of wage hosting is legal protection. You as the client will not be exposed to the Indonesian legal system nor have the risk of going into legal troubles because Double M conducts the recruitment and salary payment on your behalf. 

2. Minimal Cost

The process of searching and recruiting employees could cost you a lot of fortune, especially when it’s in a foreign country. By using wage hosting services, you will only need to pay one invoice and let Double M complete all the work. This method will certainly save you a lot of money. 

3. Effectivity

Employee recruitment process might take the majority of your resources and energy if you conduct it on your own. By using wage hosting services, you can delegate it to others and allocate your effective time for other priorities.

How can Double M help?

Using wage hosting services could help ease your recruitment process in Indonesia. With Double M’s help, you will be able to conduct the process efficiently. 

Recruitment agency is a firm that acts as an intermediary between the employer and prospective new employees. In this day and age, the usage of external recruitment agencies has become a common norm. This is because a recruitment agency in Indonesia typically offers a large database filled with the best talent pool for all your recruitment needs. 

Why Do Companies Use Recruitment Agencies?

That being said, choosing the right recruitment agency is no easy feat by any means. For many companies, hiring new employees often becomes difficult because it takes a lot of time, energy, and funds. Furthermore, not every company is well equipped to do a recruitment process on their own. To help you out, here are the tips for choosing a recruitment agency in Indonesia. 

Why Choose The Best Recruitment Agency in Indonesia?

1. Access to Candidates

By using a recruitment agency, you will gain access to countless numbers of candidates with different areas of expertise. This will immensely help your recruitment process as you will have a massive talent pool, starting from entry-level employees to high-level executives.

2. Save Time and Money

Having your own recruitment team means you have to pay for their training and also their salaries. In the long term, it could cost you a fortune. By using a recruitment agency, you will only need to pay for their services. 

3. Industry Expertise

Recruitment agencies are known to have expertise in identifying talent, and finding out whether they are the best fit for your company. With their skills at their disposal, you will be able to fill out your recruitment needs. 

Tips for Choosing Recruitment Agency in Indonesia

Here are the tips for choosing a recruitment agency in Indonesia. 

1. Specify your type

First and foremost, it is imperative for you to decide what type of recruitment agency you prefer. If you’re looking for full-time employees, a traditional recruiting agency would be suitable. For temporary or contract workers, staffing agency is the viable option. If you’re looking for high-level, high-positioned executives, you better go with headhunting agencies. And finally, if you’re looking to fill a specialized role, a niche recruitment agency is the place to go.

2. Explain your hiring needs in detail

The next thing you must do is be super specific about your hiring needs. What role are you trying to hire for, what are the job descriptions, what are the responsibilities, what is the salary. These are just a few standard pieces of information that you should tell the recruitment agency about. Furthermore, you should also explain the company’s aim, values, and culture. These are essential in order to get the right person.

3. Due Diligence on the agency

Just like the usual employee recruitment process, you should also perform due diligence on the recruitment agency you’re about to choose. Look for information on their website, assess and carefully examine the reviews, and seek track records with companies they used to work with. If everything is up to par, it’s time to continue to advance to the next phase.

Read more about Tips for Choosing Recruitment Agency in Indonesia

How can Double M help?

With the services of a recruitment agency, your company will be able to recruit the best talents available. Double M provides a recruitment service that can solve your hiring needs. Should you need tips for choosing a recruitment agency in Indonesia, please contact us.

Human resources outsourcing or commonly known as HR Outsourcing in Indonesia is a term used for a practice when an organization/company hires a third-party institution to manage its human resources activity and administrative matters. Generally in every company, human resources are among the most crucial aspects within the overall operations. In the simplest of terms, HR manages the humane aspects in your company: how your employees perform at work, and also how they get paid. Most companies have their own HR department, which consists of their internal HR employees. However, there are several instances where companies need more help.

Why Do Companies Use HR Outsourcing?

First, managing HR affairs internally could be difficult for companies with thousands of employees. For newly established foreign companies in Indonesia, managing HR affairs internally could be quite a hassle, especially when they’re often not yet familiar with the local laws and regulations. For these two scenarios, using HR outsourcing services is an excellent choice. Before making the choice to use HR outsourcing in Indonesia, it is important to know about the services usually provided.

Type of Services in HR Outsourcing in Indonesia

1. Payroll

In the world of HR, payroll might be the most outsourced service for companies. Calculating and paying salaries could become quite tricky if you conduct the process internally. Do not forget that paying salaries correctly and on time is a sign of the company’s commitment to the employees. In other words, there is no room for error on this front and the company’s reputation as a whole is at stake. This is precisely why using outsourced payroll services are popular.

2. Employee Benefits

Apart from the base salaries, most companies also provide additional benefits packaged to their employees. These benefits could come in the form of health insurance, post-retirement funds, and many more. Providing these additional services makes the company more competitive in terms of recruiting the best talents available. 

3. Employee Relations

Working with huge targets in mind, chased by deadlines could cause friction among employees or with the supervisors. HR outsourcing personnel in Indonesia are well-experienced to become mediators and manage internal conflicts when necessary. The external HR personnel can also be tasked to formulate company rules which will be adhered to by every single employee. Doing all these procedures could potentially improve employee relations within your company. 

4. Recruitment

Another service most commonly tasked to outsourced HR personnel is recruitment. The external HR personnel will be tasked to identify, approach, and present potential new recruits which can be suited to your specifications. You can then focus on the interview process and give the final approval before the appointment is finalized. 

5. Performance Review by HR Outsourcing in Indonesia

HR Outsourcing in Indonesia can also help you evaluate your employees’ performance. With the pre-existing benchmark and standards already set by the company, the appointed personnel would then measure and determine whether the employees have performed well. They are also able to give advice/suggestions on how the employees can improve.

Reasons to Use HR Outsourcing in Indonesia

After knowing the wide range of services that can be provided by outsourced HR personnel, here are more reasons that should convince you to use their services:

1. Using HR Outsourcing in Indonesia can Save Cost

Should you choose to use HR outsourcing services, you will obviously need to pay a certain amount of fee. However, it will be much cheaper than paying the salary of internal HR employees. Furthermore, you will need to organize training programs for the outsourced HR workers. Most HR outsourcing companies have personnel well equipped to manage your HR-related matters.

2. Minimize Risk

Payroll procedures, calculating benefits, managing employee data could be a long and time-consuming process. Processing these data for hundreds or even thousands of employees makes it highly possible for errors to occur. By using HR Outsourcing in Indonesia, you will have an experienced workforce with high attention to details.

3. Regulation Compliance

In Indonesia, matters regarding workforce and their rights are important. In a HR outsourcing institution, understanding and complying with the local laws and regulations are parts of their job specifications. By using their services, you will be absolutely sure of complying and implementing the rules correctly in your HR-related affairs. 

4. Data Security

Plenty of HR services involve the usage and processing of personal data. Generally, HR outsourcing organizations use highly-secured data storage with encryption features, meaning that your company and employees data will be safe and will not fall into the wrong hands.

5. Objectivity

Just like the name, human resources, the field of HR deals with the humane aspects of work life. Inevitably, this will involve sentiments and emotions. By hiring external, outsourced, HR personnel, you will be able to deploy people without prior ties or relations to the companies or its employees so in turn, they can become more objective. When you ask them to evaluate someone, they will focus solely on their performances and not something based on relation or familiarity. 

How can Double M help?

Using HR outsourcing in Indonesia can help you manage your HR affairs. Double M provide various HR services ready at your disposal.

Minimum salary is the lowest amount of remuneration that employers have to pay their employees. This system is introduced in order to protect the rights of the employees. With this regulation, companies are obliged to pay their employees above the established standard. Practically every country has its own amount of minimum salary that rises from time to time. The same thing also applies in Indonesia. 

Several provinces in Indonesia have announced that their minimum salary is rising. On November 28th 2022, it was announced that the minimum salary in Jakarta will rise to IDR 4.901.798. This represents a 5,6% increase from 2021’s minimum salary which stood at IDR 4.641.854.  West Java’s increases by 7,88% to IDR 1.986.670, East Java’s increases by 7,86% to IDR 2.040.244, and Banten’s increases by 6,4% to IDR 2.661.280.

For the employees, this news would surely be a good news. As for the employers, there are several impacts that need to be considered due to the upsurge of minimum salary in Indonesia. 

1. Purchasing Power Increased

With the minimum salary in Jakarta increasing, it can be expected that the purchasing power will rise as well. According to the Indonesian Bureau of Statistics (BPS), household consumption accounts for 50,4% of Indonesia’s GDP. This proves that Indonesians love to spend their money to purchase goods. With the incoming salary increase, the increase of purchasing power becomes inevitable. If you own a company that produces goods. This could be an excellent momentum to attract more buyers. 

2. Product Prices Increased

When product manufacturers know that the people’s purchasing power is on the rise, they are also likely to increase their selling prices to maximize the momentum. This is another domino effect that could potentially happen after the minimum salary in Jakarta officially increases. However, you must be fully aware of the buying behavior of most Indonesian people. According to Rudianto (2014), 85% Indonesians prefer cheap products over expensive ones. You must take this into account when setting your prices. If you set it high, you could get high returns but if you set it under the average price, you could also have plenty of buyers for your product.

3. Employee Salary Appraisal

If your company is based in Jakarta, you must then comply with the upcoming increase of minimum salary. Specifically, you might have to make some adjustments on the salary of your employees. If some had lower salaries than the minimum amount, you shall increase it past the limit. This payroll adjustment is a decision that could potentially affect your company. When making the decision and conducting the technicalities, you should have an excellent HR team at your disposal. They will be the ones in charge of the new salary appraisal process and you could also get the finance team to re-check the numbers. 

NOTE:

• For general information about the provinces minimum salary (UMP) in Indonesia, you can access the Ministry of Labor Regulation Number 18 of 2022 here.
• For specific information about the minimum salary in Jakarta, you can access  the Governor’s Decree Number 1153 of 2022 here.

How can Double M help?

With the upcoming minimum salary increase, you might have to adjust your employees’ salary. With Double M’s help, you will be able to calculate and pay employee salaries while complying with the regulations. 

Recruitment agency is a firm that acts as an intermediary between the employer and prospective new employees. In this day and age, the usage of external recruitment agencies has become a common norm. This is because recruitment agencies typically offer a large database filled with the best talent pool for all your recruitment needs. That being said, choosing the right recruitment agency is no easy feat by any means. To help you out, here are the tips for choosing a recruitment agency in Indonesia. Here are the tips for choosing a recruitment agency in Indonesia.

Recruitment Agency in Indonesia

1. Specify your type

First and foremost, it is imperative for you to decide what type of recruitment agency you prefer. If you’re looking for full-time employees, a traditional recruiting agency would be suitable. For a temporary or contract workers, staffing agency is the viable option. If you’re looking for high-level, high-positioned executives, you better go with headhunting agencies. And finally, if you’re looking to fill a specialized role, a niche recruitment agency is the place to go.

2. Explain your hiring needs in detail

The next thing you must do is be super specific about your hiring needs. What role are you trying to hire for, what are the job descriptions, what are the responsibilities, what is the salary. These are just a few standard pieces of information that you should tell the recruitment agency about. Furthermore, you should also explain the company’s aim, values, and culture. These are essential in order to get the right person.

3. Due Diligence on the agency

Just like the usual employee recruitment process, you should also perform due diligence on the recruitment agency you’re about to choose. Look for information on their website, assess and carefully examine the reviews, and seek track records with companies they used to work with. If everything is up to par, it’s time to continue to advance to the next phase.

4. Observe the Standard Operating Procedure

If possible, it would be very great if you can visit the recruitment agency’s office and observe their work in person. Doing this will give you clearer insight on how they operate. You can specifically observe how they manage time and how they solve problems.

5. Confirm budget

Recruitment is an intricate process which plays a big role in a company’s operations. Therefore, it is no wonder that recruitment agencies charge substantial fees for you to use their service. If you feel like they have ticked all the boxes in your criteria, you should make sure that the fee they demand is still within your budget.

How can Double M help?

With the services of a recruitment agency, your company will be able to recruit the best talents available. Double M provides a recruitment service that can solve your hiring needs. Should you need tips for choosing a recruitment agency in Indonesia, please contact us.

Prepare The Interview – Job interviews are one of the most significant point to find and select the best candidates to continue the stage of employment in a much better company target in the future. This session is probably the most difficult and crucial because it is such a critical moment to face and then select the most suitable candidate to ride with your company. If the decision is wrong, it might affect the running business.

It is well known that sometimes, conducting job interview is a challenge for the company in selecting and determining the best-expected candidates. However, other significant factors are no less interesting to look at in preparation for prospective candidates to face various challenges in job interviews.

Rizki Rahmanto as Pro Hire Recruitment at Double M has his own pattern in providing direction and terms for acquiring prospective employees before starting the interview process. During a career path of more than 20 years and ten companies handled, several recommendations will be discussed today for acquiring prospective professional candidates in preparing the job interview selection.

Double M as one of the most leading service provider of  Headhunter has practiced and excelled in providing the best candidates in accordance to the requested needs by its clients. Here are some tips that can be done by prospective candidates, see the full explanation.

Tips to Prepare The Interview

1. Clear Information Regarding the Client’s Industry for Prospective Candidates

The significant part of a recruitment process is to provide a clear information about the industry to the clients they work with. Everything must be clear and in details, including the vision, mission, and values ​​of the company. Not only that, but corporate culture is also a significant basis that must be shared with the prospective candidates.

That is the basis that must be built so that candidates who are undergoing the recruitment process know and understand everything. Starting from the job descriptions, organizational structures, future business prospects, and various other significant parts that would require and affect their roles in the company.

2. Pitching Methods

In Double M, headhunter is no longer using the psychological test method but based on the pitch deck or pitching method. Through this section, prospective professional candidates are asked to make a presentation of the expected work or success during their 100 days of performance in the company. This section is very crucial to look at because it would help measure the existing competition between the candidates.

The form of this 100-days business presentation technique can measure strategic steps, problem-solving, and the quality of thinking. Thus, the company can determine the right candidate through this process and may select the most suitable candidates for the company. As it will let you take a peek on whether the candidates would be the perfect fit for your company’s culture; its vision and mission as well as to see if their working culture would be in line with the company’s target.

3. In-depth Research Related to The Industry You are Applying For

Double M Headhunter sees that in-depth research or research related to the business being carried out can set a different angle and may predict the questions that will be asked later. Thus, prospective candidates are asked to conduct in-depth research on the target industry.

The result is that if the candidate can do so, then the interview process will be much more comfortable and be carried out in confident. Because it can measure the list of questions that will be asked later. SWOT analysis is the right method to see some of the problems that exist and can be utilized by prospective candidates.

Some of these tips were obtained through a long journey, in the hope of being able to provide a classier process and levelling up the interview process. Especially providing benefits to the Company’s CEO, Recruitment and HR Manager, and prospective candidates who are conducting the job interviews.

also read article about  “Benefits of Payroll Outsourcing”

How can Double M help ?

Double M is providing market entry solution services in South East Asia including Headhunter Service. Should you have any inquiry, please contact us at info@double-m.co

There are many ways leaders work, differentiating themselves from other employees. Many require high-level skills, such as defining vision and mission, being a decision-maker, or being an executor. But the best way that leaders can differentiate themselves is something that anyone can do and can in the example of other employees

A leader is best when people barely know he exists when his work is done, his aim fulfilled, they will say: we did it ourselves. 

—Lao Tzu

The most valuable thing everyone has is time. it is difficult for us to find enough time in the day for everything we need to do, let alone the things we want to do. You may think about sharing time with others, but that is an important part of a leader.

HR consultants say that leaders must spend 90 percent of their time developing and innovating their business. But a good leader must discipline herself to invest most of the time in others and the remaining time, you will be more productive and focus on job growth and innovation, then you will be at the forefront by paying attention to the things that are most important to you.

Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others.

—Jack Welch

ways become best leaders with giving time to others :

Teachable time

The best leaders create teachable moments and opportunities for development and coaching. Employees enjoy the time allotted for their learning and growth, and when they can learn from you—whether it’s a quick consultation on a specific issue or a seminar on new developments in your field—that time becomes even more valuable to everyone.

One-on-one time

One-on-one meetings with the employee often feel too quick and disorganized than they should be. But with the right prompts, the regular face-to-face connection provides an important way for people to share ideas and concerns that don’t have a chance to emerge in other settings. Make these meetings a priority, and spend the time listening. The more you listen to the employee, the more you will know about the employee, and the more you know, the stronger your leadership will be.

best leaders care about the time

Good leaders care about their employees, and the greatest leaders work with their teams. They make sure they know the struggles of employees, and care enough to ask questions – within appropriate limits – about family, activities, and life plans. Understanding the parts of life that give people meaning helps you know who they are.

Time for support.

Whether during one-on-one meetings, encourage employees to tell you how you can support them. It can be hard to get the ball rolling—people may feel they should be able to do things on their own. Work to create a collaborative culture where asking for help is seen as a sign of strength and togetherness.

Time to extend appreciation.

When you take the time to reward and recognize employees at important moments, it’s a good investment. But an even better way is to let them know, in spontaneous moments, how much you value them.

Lead from within.

Before you start investing your time and appreciation, you have to learn how to first lead yourself. Get smart on plotting to invest your time and remember that the best investment is giving that time to others.

Best leaders Give the opportunity

One of the most valuable gifts we can give someone is to give them a second chance. Is there currently someone you can give a second chance to prove yourself changing? If so, what steps would you take to create the right circumstances for them to succeed? What doors can you open for someone who is well-deserving, but not well-positioned to be noticed? When you start finding all the answers, you are one step forward to be a better leader than before. So do not wait for another time when you see a chance to give. And all of those actions must be first implemented to yourself.

Regardless, stick to these practical tips, as you build a name for yourself and create more value in your person for great and thoughtful leadership. For more complete information, please contact Double M. : Phone +621 27899881 or Email info@double-m.co