Employer of Record in Indonesia

How hiring through an employer of record works in Indonesia

The local employer holds the Indonesian contract, runs payroll, registers the employee with BPJS and withholds PPh 21 income tax, and your team directs the daily work. Toku's country data treats permanent employees, contract employees and expatriates under the same rupiah wage requirement, so a foreign national's base wages are also paid in rupiah.

How wages are paid in Indonesia

• Rupiah only: Toku's country data says base salary, overtime, the THR holiday allowance and severance are all paid in rupiah, citing Bank Indonesia's rupiah payment regulation and Manpower Law No. 13/2003.
• Provincial minimum wage: the rupiah wage has to meet the minimum wage (UMP) for the province where the person works.
• BPJS reporting: BPJS Employment contributions are processed through SIPP Online on the rupiah wage.
• Records: keep the exchange rates and the contract terms behind every amount, using Bank Indonesia's rates for any conversion.

Employer costs and contributions in Indonesia

BPJS Ketenagakerjaan publishes the employment programme rates for private-sector employees. The employer pays 3.7% for old-age savings (JHT), 2% for pension (JP), 0.3% for death (JKM) and 0.24% to 1.74% for work accident cover (JKK), depending on the risk class of the work. The employee pays 3%, split 2% JHT and 1% JP, and JKK and JKM fall wholly on the employer.

BPJS Kesehatan, the national health scheme, takes 4% from the employer and 1% from the employee, subject to the wage ceiling in the scheme. Taken together, the employer's share is roughly 10% of wages plus the work accident rate. PPh 21 income tax is withheld from the employee's pay on a progressive scale from 5% to 35%, based on the rupiah value of total pay, and it is separate from the employer's contributions.

Getting paid in stablecoins, USDC, USDT, tokens and crypto in Indonesia

Short answer: No. Bank Indonesia says the rupiah is the only legal means of payment and that virtual currencies may not be used for payment, and wages are paid in rupiah, so a USDC payout is not available for employees in Indonesia.

What the law says about the form of pay

Toku's country data says base salary, overtime, the THR holiday allowance and severance are paid in rupiah, citing Bank Indonesia's rupiah payment regulation and Manpower Law No. 13/2003. Bank Indonesia says the rupiah is the only legal means of payment and that virtual currencies may not be used for payment, and its 2021 regulation bars payment providers from processing payments with virtual currency.

What it means for employee salary

Indonesian salary, deductions and payslips therefore stay in rupiah. Whether any stablecoin element can be offered in Indonesia, and how it would be treated, is confirmed for each hire and never assumed.

Tax on crypto and tokens

Under Law 7/2021 work rewards, including benefits in kind, are income, taxed at 5% to 35% for residents. For crypto sales through domestic platforms, regulation PMK 50/2025 (from August 1, 2025) sets a final 0.21% income tax on the transaction value, or 1% through foreign or undesignated platforms, and crypto transfers are not subject to VAT.

How Toku handles it

Official rules in Indonesia restrict or prohibit using or offering crypto and stablecoins as a means of payment, so this page does not offer stablecoin payroll, USDC or USDT payouts or token grants for Indonesia. Toku confirms what, if anything, applies to a specific hire before an offer.

Reviewed November 7, 2026 against the official sources listed below. General information, not legal or tax advice. Tax on crypto or tokens received depends on local rules and where the person is resident, so confirm it with a local adviser.

How hiring through Toku works in Indonesia

1. Share the role, location, salary and start date.
2. Toku confirms coverage, the contract type and the right to work.
3. The local employer issues the contract and onboards the person.
4. Payroll, contributions and filings run each cycle.

Before a start date is set Toku checks the role, location and contract terms. Prepare the signed contract, identification, tax and BPJS numbers and a bank account, as salary is paid by bank transfer in rupiah. The timeline for Indonesia is confirmed in your quote.

What an employer of record costs in Indonesia

Where Toku supports the hire, its employer of record service starts at $599 per employee per month, with salary, employer contributions and benefit premiums itemized in your quote. Coverage in Indonesia is confirmed before an offer. See the published pricing.

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