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Hire in Indonesia

Introduction

Indonesia is an emerging market economy. Despite the pandemic situation, it has been an upper-middle-income country over the last decade. Industrialization is taking place rapidly. Indonesia is now a member of the Group of 20 (G20) countries.

Indonesia is the largest Southeast Asian country. It has resumed economic and trade activities after the COVID-19 pandemic. The industries in Indonesia steadily see a positive trend. About 41% of the sectors are likely to increase employment opportunities. With a recent surge in the technology industry, about 63% of citizens are likely to find new opportunities in 2021.

However, there is a talent crunch in the finance sector. If the talent gap is not addressed through timely training, Indonesia will likely lose its place while competing with the dominant countries.

To know more about hiring a remote employee in Indonesia, book a demo with Skuad now.

Overview of Indonesia

Population: 270 million people

Gross Domestic Product (GDP): Expected to reach USD 1150 billion by the end of 2021

Economic Overview

With a growth rate of 5% in the past few years, GDP was negatively affected by the COVID-19 pandemic and lockdown. Indonesia has brought down the poverty rate by more than 10% and has scaled up to be a great economy. The middle-class population is increasing and improving the numbers.

Internet Speed and Connectivity

Indonesia has many internet users, although there are restrictions imposed on the degree of internet freedom. In the past year, there has been a massive rise in Indonesia's number of internet users.

Available Internet access options range from Fibre, Asymmetric Digital Subscriber Line (ADSL), and mobile internet. The internet penetration in Indonesia stands at 73.7% in January 2021.

Despite having many internet users in Indonesia, the download speed is 17.26 Mbps, far less than the other countries. This Southeast Asian country has moved down from the 117th position to the 121st position concerning internet connectivity.

Market Size

Indonesia has stupendous digital professionals looking for the right opportunity and exploring the job market. Although there is a capital influx in the form of foreign investment and numerous organizations springing up, the supply of professionals is inadequate to meet the demands of the industry.

Remote working in the past is gaining popularity in this country. With the recent changes in the world due to the pandemic, technological advancement has allowed people to work from home. Several organizations, in addition to the existing workforce, hire people to work remotely.

Remote working attributes to a plethora of benefits for the employee and the organization. Productivity for all the employees has increased exponentially. Work-from-home has improved productivity by 77%. Traveling to work is time-consuming, and the Airtasker survey states that an employee saves about 8.5 hours due to commuting to the workplace.

Predominant Industries

The major industries in Indonesia are mining and crude oil. This contributes to this Southeast Asian country's economic development. Indonesia manufactures electronics, textiles, automobiles, food, beverages, and chemicals, contributing to the country's development. The service sector in Indonesia is booming and records year-on-year growth.

When there's so much to offer, it becomes tricky to hire the right set of people for your team. Skuad can help you find, hire, and manage excellent local talent and make expansion in Indonesia a hassle-free task.

Knowledge and Skills of Indonesian Workers

One of the greatest assets of an organization is its employees and the knowledge they bring to the table. The swift growth of various service sectors will happen when appropriate knowledge and skills are abundant. When applied to the work, this brings tremendous growth to the organization. About 60% of the knowledge workers are self-motivated. More than the labor part of employment, employees' knowledge is given maximum importance. The knowledge that the employee carries will have to be applied to their work.

Top Skills in Indonesia

Skills

Skill Sets

Digital Technologies

Programming languages, Software proficiency, technical writing, project, management, and data analysis

Healthcare

Empathy, teamwork, stress management, positive attitude, and time management

Content Writers

Research, adaptability, originality, editing, communication, and Search engine optimization (SEO)

Social Media SpecIalists

Digital marketing, agility, communication, and creativity

Brand strategists

Analytical and problem-solving mindset and compelling storyteller

Rank

Skill Sets

C suite Roles

  • Leadership skills

  • Communication and presentation skills

  • Change management skills

Head of Finance

Finances, budget, and risk management

Country Sales

Analytical risk assessment skills, problem-solving skills, ability to impose strategies, and financial knowledge

Head of Risk

Analytical skills, strategic thinking, problem-solving skills, working under pressure, and adaptability

Marketing Manager

Marketing, innovation, and team management

Top Skills by City

City

Skills

Skills Sets

Jakarta

Back End Developers, financial, and trading

Python, SQL, Java, PHP, and other programming languages

Bandung

Tourism and creative industry

Networking skills, communication skills, and emotional intelligence

Medan

Automotive and production

Technical skills, commercial awareness, presentation skills, organizational skills, and creativity

Yogyakarta

Health services and educational services

Teamwork, intelligence, work ethics, positive attitude, and stress management

Cost of Living in Indonesia

For career-related reasons, there is an influx of foreigners to Indonesia. This Southeast Asian country allows individuals to live comfortably in Indonesia as the cost of living is quite low.

The study says that an individual can live in Indonesia with USD 900 a month. A family of four may have to shell out IDR 29,846,962, which is USD 2000 a month.

While living in Jakarta, the capital city, the apartment costs are relatively high, and in other cities are low.

Cost of Living and Rent by City

The list below shows the highest to the lowest cost of living per city in Indonesia.

Rank

City

Cost of Living in IDR (without rent)

Cost of Living in USD (without rent)

Cost of Rent in IDR

Cost of Rent in USD

1

Jakarta

27,051,565RP

$1,864.29

10,336,956 RP

$712.96

2

Denpasar

11,820,285 RP

$814.61

4,916,666 RP

$339.11

3

Bandung

21,495,720 RP

$1,481.41

5,124,935 RP

$353.19

4

Bengkulu

22,963,141 RP

$1582.53

3,100,000 RP

$213.64

5

Yogyakarta

21,043,840

$1450.33

5,860,000

$403.85

Skuad's EOR solutions for Indonesia can help expand your business while adhering to the tax legislation, labor laws, and contracts.

Salary Structure for Various Roles in Indonesia

Indonesia's highest paying jobs are in senior-level management. The study says that there is less gap to bridge the demand and supply of the personnel in senior-level management.

The salary levels are good in Indonesia for the right talent. The compensation includes-

  • Salary
  • Overtime pay
  • Paid annual leave
  • Festive leave pay
  • Health care benefits
  • Contribution from the employee for retirement benefits

However, the package designed by each company for benefits for employees need not be according to the workforce law. It is for mutual benefit as conflicts can be resolved through mutual agreement and collective bargaining.

Working Areas and Average Salary

Working areas/Job type

Average gross monthly salary by survey (in IDR)

Mobile Developer

$73,457

UX designer

$47,580

Banking

$15,304

Business analysts

$44,827

Architects and interior designing

$14,385

Finance and Economics

$15,775

Education, and R and D

$14,265

Engineering

$13,575

Fashion designing

$14,385

Marketing and Advertising

$19,868

Web development

$46,761

Finance manager

$34,786

Human resource manager

$16,789

Chief

$12,115

Research scientist

$14,204

Postdoctoral researcher

$11,666

Executive assistant

$68,155

Attorney

$36,237

To get Skuad's EOR services, connect with us today.

Employment Laws in Indonesia

  • As of 2019, the retirement age is 57 years. However, it is expected to increase by one year every three years until it reaches 65.
  • No special treatment will be given to foreign workers.
  • There will be no more than 7 hours a day and 40 hours in a week, only six days per week.
  • Each employee is allowed to take a maximum of 12-day leave per year.

Conclusion: How Can Skuad Help You in Hiring in Indonesia?

Understanding the market in a foreign country is a difficult task. With Skuad’s unified employment solution, all your organization’s requirements can be taken care of with just one click. Skuad’s reach of over 150 countries ensures a seamless recruitment process. From talent search to hiring, payroll, compensation, you can rely on Skuad for all your human resource requirements. Connect with Skuad to know more.

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