For Singaporean founders looking at Southeast Asia, Indonesia often becomes the first and most significant opportunity. A massive population, a fast-growing digital ecosystem, and rising purchasing power make it one of the most attractive markets in the region.
But entering Indonesia isn’t always straightforward. Incorporating a local entity takes time. Compliance rules can be complicated. Hiring the first local team can slow the momentum of expansion.
This is where the Employer of Record Indonesia model becomes a game-changer.
Instead of waiting months to set up a PT PMA with paid-up capital, founders can:
Let’s break down how this works and find out why Singaporean companies love it.
In the simplest terms:
You manage the work. Your EOR partner in Indonesia manages the legal employment.
An EOR is a licensed local entity that hires employees on your behalf while you stay focused on operations and growth. The EOR handles everything related to employment, including:
This lets you operate in Indonesia with zero administrative overhead. It’s a plug-and-play solution for hiring your first Indonesian team, fast and legally.
The benefits go beyond convenience. For founders, speed is everything. And EOR delivers precisely that.
With EOR, everything is already in place. You simply tell the EOR partner who you want to hire, and onboarding begins immediately.
Without a legal entity, your business does not need to deal with the following:
The EOR partner holds full responsibility toward Indonesian regulators, giving you room to focus on scaling.
Many Singaporean founders love the EOR scheme because it matches how startups operate:
You can build your sales, marketing, or operations team without heavy infrastructure.
Employment in Indonesia involves strict rules around:
An EOR partner in Indonesia handles all of this smoothly.
Once your operations grow, you can easily establish a PT PMA and transition your team.
Many founders use EOR for the first 12–18 months to validate the market before making long-term investments.
VIVOS prefers clarity and practicality, so here’s the workflow in four simple steps:
Whether you source candidates or the EOR handles the recruitment, the choice is yours.
All agreements follow Indonesian labour regulations — no guesswork needed.
This includes tax reporting, BPJS, benefits, and employment documents.
You manage tasks, KPIs, and performance just as you would your own staff.
Use EOR if you want to:
Use PT PMA if you:
Many founders use EOR → then convert to PT PMA → then transfer employees. The transition is seamless and is legally compliant.
A successful Indonesia expansion depends on strong execution and flawless compliance. VIVOS, along with Business Hub Asia, helps Singaporean founders expand into Indonesia with:
If you’re ready to test the Indonesian market without heavy investment, working with an experienced eor partner in Indonesia will accelerate your journey.
Partner with VIVOS to unlock real opportunities with seamless expansion in Indonesia.
2 January, 2025
2 January, 2025How fast can I hire in Indonesia using an EOR?
Hiring through an EOR service is significantly faster than setting up a PT PMA. Once a candidate is selected, the EOR can prepare contracts, run compliance checks, and activate payroll within 7–10 working days.
This includes employment agreement drafting, social security registration, tax profiling, and onboarding.
Do I need to register a company in Indonesia to hire through EOR?
No. With EOR, the local partner becomes the official employer on behalf of your company. You maintain full control over the employee’s daily work, but the EOR handles all legal obligations.
Who is responsible for payroll taxes and social security (BPJS) contributions?
Your EOR partner manages all payroll, tax reporting, and social security obligations. The EOR ensures everything aligns with Indonesian labor law so you avoid miscalculations, penalties, or compliance issues.
Can I hire remote employees across different cities?
Yes. EOR allows hiring anywhere in Indonesia, regardless of city or province. You don’t need separate branch offices or regional licenses because the EOR’s entity covers the entire country.
What happens when I want to switch from EOR to PT PMA?
Once your PT PMA is established, employees can be formally transferred from the EOR to your new entity with:
Most companies use EOR during the initial 6–18 months to validate the market. When traction is proven, they transition to a full legal entity with a well-prepared team already in place.
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