If you're a digital founder, Indonesia is a goldmine for talent. But if you're hiring local staff, you need to be compliant. Your "remote-first" policy doesn't exempt you from Indonesian labor law.
Here are the legal infrastructure points we focus on at AcceleraSEA when advising tech founders:
• The Contract: Even for remote work, you need a formal PKWT or PKWTT contract in Bahasa Indonesia. This is non-negotiable.
• The BPJS Mandate: You must register your local employees for BPJS. It's a mandatory social security contribution. Budget for this from day one.
• The THR Factor: Your team will expect their Festive Day Allowance. It's a critical part of the local compensation structure.
• The Termination Trap: Don't assume you can "fire at will." Termination requires a valid reason and proper severance.
I've detailed the full framework for building a legally sound team on our website. If you're a founder who's been through this, I'd love to hear your biggest lesson learned in the comments!
www.accelera-sea.com
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