In 2021, a Japanese manufacturing company opened a new plant in Bekasi and quickly hired over 200 workers. While recruitment was fast, many employees left within the first three months. Exit interviews revealed two key issues: incomplete legal documentation and a lack of cultural integration. This case highlights why structured onboarding in Indonesia is not just a formality but a compliance necessity.

Legal Framework

Under Law No. 13/2003 on Manpower (as amended by the Omnibus Law No. 11/2020) and its implementing regulations, onboarding requires more than just orientation. Employers must:

• Provide a written employment agreement (PKWT or PKWTT) in Indonesian.
• Register employees with BPJS Kesehatan and BPJS Ketenagakerjaan.
• Report new hires to the Ministry of Manpower (MoM) system.
  Failure to complete these steps can lead to administrative sanctions and disputes.
  

Real Case: Technology Sector

In 2019, a Jakarta-based startup faced a lawsuit when several employees discovered they were not properly registered in BPJS. The Industrial Relations Court ordered the company to compensate medical expenses that should have been covered by BPJS, underscoring how onboarding errors can become costly.

Best Practices for Foreign Employers

1. Documentation First: Ensure all contracts, BPJS registration, and tax IDs (NPWP) are completed before employees start.
2. Cultural Integration: Introduce employees not only to company policies but also to workplace norms—respect for hierarchy, collective culture, and local holidays.
3. Buddy System: Pairing new hires with senior colleagues helps reduce turnover.
4. Transparent Communication: Clearly explain probation periods, leave entitlements, and dispute resolution mechanisms.

Conclusion

Onboarding in Indonesia is both a legal obligation and a cultural bridge. Employers who combine compliance with integration build stronger trust, reduce turnover, and avoid legal risks. As the Bekasi case shows, neglecting these steps can undermine business growth.

References

• Law No. 13/2003 on Manpower (amended by Omnibus Law No. 11/2020).
• Government Regulation No. 35/2021 on Fixed-Term Contracts, Outsourcing, and Termination.
• BPJS Ketenagakerjaan & BPJS Kesehatan official guidelines.
• Ministry of Manpower (MoM) Online System.
• The Jakarta Post, “HR Compliance Challenges in Indonesia,” 2021.