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Updates on Recruitment, Human Resource, and everything in between
29Nov
Managing Sick Leave and Long-Term Absenteeism in Indonesia: Rights and Procedures
When a financial services company in Jakarta faced a situation where one of its senior analysts had to take extended leave due to a serious illness, HR was challenged to balance compassion with compliance. While the company wanted to support the employee, it also needed to ensure that the business operations and legal requirements were […]
28Nov
Handling Employee Misconduct: Investigations, Suspension, and Disciplinary Actions in Indonesia
When a manufacturing firm in Surabaya discovered that one of its supervisors was leaking confidential production data, management had to act quickly. However, instead of immediate dismissal, the company first initiated an internal investigation to ensure that any disciplinary action would comply with Indonesian labor law. Legal Framework Employee misconduct in Indonesia is governed under: […]
27Nov
Implementing Performance Improvement Plans (PIPs) in Indonesia: A Legal and Cultural Perspective
When an international tech company expanded to Indonesia, managers introduced a Western-style Performance Improvement Plan (PIP) to address underperforming employees. While common in global HR practices, the company quickly realized that applying PIPs in Indonesia required careful alignment with local labor law and cultural expectations. Legal Framework In Indonesia, employment relations are primarily regulated by: […]
26Nov
Conducting Lawful Performance Appraisals and Providing Feedback in the Indonesian Context
When an international retail company opened operations in Jakarta, management quickly realized that Western-style performance reviews—direct, numeric, and sometimes harsh—did not translate well in Indonesia. Employees felt uncomfortable, and some even reported unfair treatment to the HR department. This experience highlights the importance of conducting performance appraisals in a way that respects Indonesia’s legal and […]
25Nov
Guidelines for Employee Loans and Salary Deductions in Indonesia
When Maya, an HR manager in Jakarta, received multiple requests for employee loans, she faced a dilemma. How much could be deducted from salaries each month? And what legal limits apply under Indonesian labor law? Cases like this highlight the importance of clear policies on employee loans and salary deductions. Legal Framework According to Indonesia’s […]
24Nov
Expatriate Compensation Packages: Key Considerations for Indonesia (Tax Equalization, Housing, etc.)
When James, a senior manager from London, accepted an assignment in Jakarta, his excitement quickly turned to concern. Beyond salary, he wondered—how would housing, schooling for his children, and Indonesia’s complex tax rules be handled? His story is common among expatriates, making compensation design a critical issue for foreign employers. Expatriate compensation packages in Indonesia […]
23Nov
Salary Structure in Indonesia: A Guide to Gross vs. Net Pay and Allowances
When John, an expatriate manager, received his first salary slip in Jakarta, he was surprised. The “gross” figure in his contract looked generous, but after tax, BPJS contributions, and deductions, the “net” pay was much lower. This confusion is common for both foreign and local employees in Indonesia. Gross vs. Net Pay Employers must be […]
22Nov
Understanding THR (Tunjangan Hari Raya): The Mandatory Religious Holiday Allowance in Indonesia
When Rina, an office worker in Jakarta, received her Tunjangan Hari Raya (THR) before Eid, she immediately sent part of it to her parents in the village. For her family, THR was not just a financial bonus—it was a tradition that allowed them to celebrate the holidays with dignity. THR (Religious Holiday Allowance) is a […]
21Nov
Beyond BPJS: Designing Competitive Employee Benefit Packages to Attract Top Talent in Indonesia
When a promising software engineer in Jakarta received two job offers—one from a multinational company offering only the statutory BPJS benefits, and another from a local startup that provided health insurance top-ups, flexible work, and learning allowances—the decision was easy. The second offer felt more human-centric and competitive. In Indonesia, BPJS Kesehatan (healthcare) and BPJS […]
20Nov
The Onboarding Process in Indonesia: Essential Steps for Compliance and Culture Integration
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 […]
