Lundi's Indonesian base — Jakarta for corporate, finance, and tech; Bandung for engineering; Yogyakarta as a tertiary tech and creative hub. Built for companies needing Indonesian market presence, Bahasa Indonesia coverage, or Southeast Asia's largest single market — accepting PT PMA setup complexity and substantial severance provisions.
Indonesia is Southeast Asia's largest market and one of its most under-utilized senior talent pools. Jakarta concentrates the talent across finance, tech, and corporate functions. GoTo (formerly Gojek and Tokopedia), Bukalapak, Traveloka, and the Sea Group regional ecosystem have produced substantial alumni networks. Employer costs run roughly 11–12% above gross plus mandatory THR (13th month religious bonus). English proficiency is variable — strong in Jakarta tech and corporate roles, lower in general operations. For companies building teams of 10+, not individual hires.
Indonesia is Southeast Asia's largest single market — 280 million people, the region's largest tech ecosystem post-Gojek/Tokopedia merger (GoTo), and a deep professional talent base across finance, tech, and corporate functions. The flip side: PT PMA (foreign-owned company) setup is bureaucratic, severance provisions are substantial, and English proficiency varies significantly by city and function.
Three operating hubs, different specializations.
Jakarta concentrates the senior talent across functions — finance (BCA, Mandiri, BNI), tech (GoTo, Traveloka, Sea Group regional), and corporate operations. Sudirman-Thamrin, SCBD, and Mega Kuningan are the main business districts. English proficiency among Jakarta tech and corporate professionals is generally strong.
Bandung is the secondary engineering and university hub — strong engineering school (ITB — Institut Teknologi Bandung), lower cost than Jakarta, growing tech sector.
Yogyakarta is the creative and tertiary tech hub — strong universities, lifestyle-driven, growing software development and creative scene.
Operating context. Indonesia spans WIB (UTC+7, Jakarta and western), WITA (UTC+8, Bali and central), and WIT (UTC+9, eastern), but most professional roles operate on Jakarta time. Full Asia-Pacific working-hours alignment; significant offset to US/Europe. English proficiency is high in Jakarta tech and corporate; lower in general operations and customer-facing roles. Indonesia vs Vietnam: Indonesia offers larger market and broader corporate talent; Vietnam wins on engineering depth and lower senior cost. Indonesia vs Philippines: Indonesia is larger but Philippines wins on English fluency and customer-facing role suitability.
Employer cost reality. Employer contributions run roughly 11–12% above gross: BPJS Ketenagakerjaan (~7.04% covering old-age savings, pension, work accident, death benefit) plus BPJS Kesehatan (~4% health). Mandatory: THR (Tunjangan Hari Raya — religious holiday bonus, typically 1 month salary, paid before religious holidays). Total all-in employer cost typically lands ~20–25% above gross including THR. Mid-level engineers in Jakarta run IDR 25M–45M/month gross ($1,600–$2,900); senior engineers IDR 40M–80M ($2,600–$5,200); engineering leads IDR 70M–130M ($4,500–$8,400).
Indonesian employment is governed by Law No. 13/2003 (Manpower Law), amended by the Omnibus Law (Law No. 11/2020 and subsequent regulations). The system is employee-protective with extensive severance provisions, but recent reforms have introduced more flexibility on fixed-term contracts and outsourcing.
EOR works well up to 15–20 headcount. Lundi's Indonesian employment infrastructure handles BPJS Ketenagakerjaan (~7.04% employer for old-age savings, pension, work accident, death benefit), BPJS Kesehatan (~4% employer for health), THR (Tunjangan Hari Raya — religious holiday bonus, mandatory, equivalent to 1 month salary), PPh 21 (income tax) withholding, and statutory leave (12 days minimum after 1 year service).
PT PMA (foreign-owned company) makes sense at significant scale. A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the standard foreign-owned entity. Setup is bureaucratic (typically 3–6 months) and requires BKPM (Indonesia Investment Coordinating Board) registration plus minimum capital commitments (typically IDR 10B authorized capital, IDR 2.5B paid up). Lundi's BOT pathway can guide entity establishment.
Tax incentives for technology and export-services. BKPM offers tax holidays (5–20 years CIT exemption depending on investment scale and sector) for qualifying pioneer industries. Tax allowances and SEZ (KEK — Kawasan Ekonomi Khusus) structures provide additional benefits for qualifying operations. Lundi advises on qualification.
Work permit (KITAS) for non-Indonesian hires. Foreign workers require IMTA (work permit) and KITAS (limited stay permit) sponsored by the employer. The DKP-TKA fee (foreign worker compensation fund) is USD 100/month per foreign worker. Talent corridor strategies (relocating non-Indonesian engineers to Indonesia) have meaningful administrative complexity.
Severance reality. Indonesian severance is among Asia's most substantial — for indefinite-term employees, severance can run 1 month per year of service up to 9 months, plus service appreciation pay (1–2 months per 3–6 years), plus compensation for unused entitlements. Buyers should model termination cost when planning.
Why HRBP infrastructure matters in Indonesia. Indonesian performance management, union interactions (in unionized sectors), and termination procedures benefit from Bahasa Indonesia-fluent, locally-literate operators. Every Lundi Indonesia team includes a named HRBP from day one.
What it costs to employ someone through Lundi.
Lundi's cost is the all-in cost of the employee — gross salary plus statutory employer contributions plus customary benefits — and a Lundi management fee on top. The management fee depends on team size and scope: smaller teams pay a higher per-head rate, teams of 20+ get materially better unit economics, and Build–Operate–Transfer engagements are structured separately.
The alternative paths look like: setting up your own local entity (meaningful months of legal and accounting work, plus ongoing in-country HR, payroll, and compliance infrastructure), engaging a local recruitment agency on contingency (typically a percentage of first-year compensation, paid once, with no ongoing employment relationship), or hiring as a contractor (lower upfront cost, real misclassification risk in most jurisdictions). Lundi is faster than entity setup, structurally different from contingency recruitment, and lower-risk than contractor arrangements.
Talk to us for specific pricing.
There is no notice stipulated notice period but employers are generally expected to provide 30-days advance notice before terminating an employee.
Lundi works with companies building teams of 10 or more across business, technical, and operational functions . Not for one-off hires or individual placements.
EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.
