Expatries Network
Indonesia

Running payroll in Indonesia

A payslip drawn up in Indonesia is issued in IDR, in the language and in the form that local law requires. The question is not whether your software can produce a payslip: it is who, on the ground, stands behind what it contains.

Outsourcing payroll in Indonesia calls for three prior checks: that the firm is authorised to practise, that it is up to date with its own tax and social security obligations, and that it is insured for the errors it might make. The network verifies these three points before any listing, on supporting documents rather than on statements.

Indonesia has thoroughly overhauled its business formalities: the single online submission system now issues a business identification number that replaces the former trading licences, and the activity code it carries determines what the company may lawfully invoice. Checking that code is the first reflex before contracting with a local provider.

Indonesian rupiah are paid into a local account, and employment documents are drawn up in Indonesian; a bilingual version is accepted for foreign employees, but the Indonesian text prevails. Indonesia takes part in no multilateral social security coordination area.

Social protection rests on two independent agencies, one covering pensions, old age, death and work injury, the other covering health insurance. Two affiliations, two contribution flows, two certificates. Third-party payroll requires no licence at all: the country's only regulatory condition concerns the supply of labour, which is subject to approval by the labour ministry. Reading that activity code correctly avoids most of the surprises that otherwise follow.

What the Indonesia profile contributes to this question

Who may run payroll in Indonesia

In Indonesia, running payroll on behalf of third parties is reserved by law to no registered profession: any company may take it on. The absence of a legal barrier shifts the checking onto you, and that is why the network itself verifies the registration, the tax and social security standing and the insurance cover of every firm before listing it.

Consult the official register

Local wordingIssuing bodyValiditySource
Nomor Induk Berusaha (NIB) délivré par le système OSS, accompagné de l'Akta Pendirian et du SK Pengesahan KemenkumhamBusiness Identification Number (NIB), deed of establishment and Ministry of Law approval decree

Le NIB a remplacé depuis 2018 les anciens SIUP et TDP : c'est aujourd'hui la preuve d'existence unique, à laquelle il faut joindre l'acte notarié (Akta Pendirian) et l'arrêté d'agrément du ministère (SK Kemenkumham), vérifiable sur ahu.go.id. Contrôler le code d'activité KBLI mentionné sur le NIB : 69202 pour la comptabilité, 78300 pour la fourniture de ressources humaines.

Lembaga OSS — Kementerian Investasi/BKPM ; Direktorat Jenderal AHU, Kementerian Hukum dan HAMNo expiry
Required
Official website
Izin Usaha Perusahaan Alih Daya (agrément d'entreprise de sous-traitance de main-d'œuvre) — le cas échéantOutsourcing company licence

Requis uniquement si le partenaire met du personnel à disposition du client (alih daya / outsourcing), régime issu de la loi Cipta Kerja et de ses règlements d'application. Un bureau de paie qui traite les dossiers depuis ses propres locaux n'en a pas besoin. Demander la position écrite du cabinet.

Kementerian Ketenagakerjaan (Kemnaker)No expiry
Where applicable
Official website

Back to the Indonesia profile

You employ staff in Indonesia

Describe your requirement. It is put to the partners in that country as an anonymous summary, and your contact details are passed on to the selected firm alone.

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You run payroll in Indonesia

Submit an application: we review your file, we check the documents required on the ground and we give you an answer, whether it is positive or not.

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