High-Speed Market Entry – Indonesia

In the second addition of AYP’s Webinar Series, we discuss high-speed market entry into various countries in the ASEAN Region. Namely Singapore, Malaysia, Indonesia, the Philippines, Thailand and Vietnam. We discuss Professional Employer Organization (PEO) and Employer of Record (EOR), and how these two can be important factors into quickly and efficiently entering a market in any of the aforementioned countries. In this addition of AYP’s Webinar Series, we have experienced and esteemed in-house experts and consultants to guide you through the process and factors that affect high-speed market entry, and how you can use these to your company’s benefit.

Indonesia’s addition of AYP’S High-Speed Market Entry Webinar saw AYP Indonesia’s Country Head Feiby Stella as the main speaker. Feiby has an extensive amount of experience and knowledge in diverse areas, having worked 10 years in various fields such as HRIS, Pharmaceutical, Mining, IT and Consultancy. Currently, she leads AYP Indonesia’s team in providing superior HR services. In this webinar, Feiby discusses the benefits of using a PEO/EOR Service, its’ scope of service, contract types, labour laws and benefits in the Philippines, along with success and ROI of using a PEO Service.

Benefits of Using PEO/EOR: 

The use of a PEO/EOR Service essentially links clients to employees through AYP, regardless of their location. The service no doubt provides convenience for clients, as services such as payroll and tax management are taken care of by AYP. Furthermore, worry-free and convenient HR Administration and simple work pass management. The PEO Service also allows for an organisation to quickly and efficiently enter markets all over the region, without the need of an initial local entity. All in all, AYP’s PEO/EOR Service provides efficiency and cost-effectivity to clients.

Service Scope:

Should one engage AYP for PEO/EOR Services, AYP is then responsible for drafting the company’s employment contracts, insurance coverage and payroll-related services. AYP also takes care of HR Support, the on-boarding process for new employees as well as local labour laws and regulations.

Indonesia’s Contract Types, Labour Laws, Employee Benefits & Work Permits: 

There are three types of contracts in Indonesia. First there is the Permanent Contract (PKWTT), the Non-Permanent Contract (PKWT), and the Part-Time Contract.

Labour Laws in Indonesia heavily determine the rights and benefits that a worker in Indonesia is entitled to. Each employee is entitled to 12 days of annual leave, Festive Allowance and insurance coverage. They are also required to make social contributions to both BPJS Kesehatan, health insurance program and BPJS Tenaga Kerja, Manpower.

There are two types of work permits that a foreign worker can attain in order to work in Indonesia. First is a limited stay permit card known as KITAS/ITAS and a work permit known as IMTA. There are several requirements for an individual to attain a work permit in Indonesia. They need to provide a copy of their passport with an expiry date of no less than 18 months. They also need a formal photo, updated curriculum vitae, a reference letter, a minimum of a bachelor’s degree, copy of insurance membership and banking statement of the previous three months.

Success Stories/ROI: 

A PEO Partner of AYP’s started out with only a headcount of 30 throughout the region. A two-year partnership with us has helped this number to skyrocket to more than 150.

 In terms of ROI, utilising AYP’S PEO Services saves one the cost of engaging HR Personnel. We also take care of health benefits, workers’ compensation, unemployment insurance and other external expenditures such as payroll services and tax reporting. The overall average ROI is some 27.2% on annual cost savings.


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