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Start Business in Indonesia without an Entity with Employer of Record (EOR)

As an archipelago country with the 4th largest population globally, Indonesia gave such luxury for investors to start a business in Indonesia. Besides, during the pandemic of COVID-19, Indonesia managed to have economic growth of about 5.02% in 2021. Currently, Indonesia is enjoying the benefits of demographic bonus, where over 50% within the country is on their productive age group ready to work.  Furthermore, sectors of industry ranging from manufacturing, tourism, and e-commerce have become the main reason for a business establishment in Indonesia. Business in Indonesia may also serve you with numerous benefits starting from easiness export-import boundaries due to the region's trade agreement or ownership of land as the country itself ranked in 73rd position for this matter. It is undeniable that Indonesia is one of the important investment markets in the South-East Asia Region.

However, starting a business in other countries must have its challenges. In Indonesia, a process of research and market testing will take a year or two to gain enough reference to execute the strategy. Besides, the cost for opening a company in Indonesia requires a high price of about 600,000 USD, and access to updated regulations is very limited.

What is an Employer of Record (EOR)?

As a preventive act due to the company establishment burden, JAC Indonesia presents you with the Employer of Record (EOR). EOR or employer of record provides consulting services whereby investors can run the business without any entity in Indonesia or just market testing. Employer of Record is a third-party local entity that acts as an intermediary for local employees and employers abroad. It is a new, intelligent and efficient way of doing business in Indonesia. EOR Services provides you with a handful of matters in business starting from:

  • Recruiting and hiring

  • Prepare employment contract

  • Payroll processing

  • Income tax calculation

  • Provide calculation of employee insurance and benefit

  • Legal assistance

EOR Service will help investors settle their business in Indonesia from the beginning until they are more confident to open a new office after at least six months to one year of market testing.

What will investors gain using EOR Services?

  1. Save cost and time- Getting a legal entity and opening an office in Indonesia may take a while because of the long process and enormous funds to be prepared for minimum capital establishment. EOR Services will save investors time and money and help them focus better on their core business.

  2. Hire top talent quickly- with JAC's robust network of candidates built over 20 years of experience in human resources, we will support your need to start doing business with qualified employees.

  3. Do Market Testing- EOR Services will help investors understand the market and do their market research from the inside before starting their own company in Indonesia.

  4. Premium Consulting Services- In Indonesia, the payroll service and the tax service are difficult for foreigners, especially the newcomers, but EOR Services will put their expertise of 8 years experience to help investors even after they get their legal entity. JAC consultants are ready to support you 24/7, tailored to your unique business needs.

  5. Full Compliance with Regulations—our HR experts ensure your business is 100% in line with all Indonesian laws and regulations

Setting up business in Indonesia has never been this easy before. JAC Outsourcing as an employer of record companies presents Employer of Record services as a management contract channel where the company does not need direct investment or company establishment in Indonesia.

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