How is Indonesia’s Employment Culture?

Trường Lăng

September 25, 2019

Asian businesspeople having a meeting

Minimum Wage

This is one of the most important things that you have to know. Minimum wage refers to the lowest monthly wage consisting of basic wage including fixed allowance. The employer is prohibited to pay lower wages than the Provincial Minimum Wage. Jakarta has a high minimum wage compared to other smaller cities.

NoRegionMinimum Wage 2019
1DKI Jakarta3,940,972 IDR
2West JavaI,605,396 IDR
3Bali2,297,967 IDR
4East Java1,630,058 IDR
5East Kalimantan2,747,463 IDR

13th Month Salary (Tunjangan Hari Raya)

Tunjangan Hari Raya refers to Religious Holiday Allowance. The employer is obligated to pay the allowance a maximum of 1 week before the religious holiday. Usually, companies in Indonesia choose to have it before the Eid (Religious Holiday For Muslim) and Christmas (For Christian)

Health Insurance

According to the 2016 health insurance policy, all employees must join the Social for Manpower (BPJS) program. This program managed by BPJS Kesehatan to provide universal health care for 2019.

Employment Culture

For Indonesian employee, some things might motivate them more, such as:

  1. Possibility to travel
  2. Outing (team events)
  3. Training (professional skill and language class)
  4. Employee discounts

It is also important to know that

  • Addressing Superiors

Inside the workplace, it is very important to refer a person who has a higher position as ‘sir’ or Bapak and ‘ma’am’ or Ibu. This shows the respect and politeness to the senior. It is not common to call them by their first name or nickname.

  • Private Criticism

It is important to know that some Indonesian hate confrontation especially when it comes to their weakness. Keeping criticism as a private manner is preferred work culture in Indonesia. Here, nobody likes the feeling of being embarrassed publicly.

  • Co-workers become friends

Unlike other countries where most people separate between being a co-worker and a friend, Indonesian tend to blurs this line. Do not be surprised if Indonesian ask a personal question to you.
Want to know more? Contact us!

Related posts


Must-know things for foreign investors about employment law in Vietnam

Recruitment and compliance with labour terms in Vietnam are huge matters of concern for foreign investors. How to properly and fully comply with the provisions ...

Read more

Why Did The Remote Working Teams Fail and How To Avoid It?

When the pandemic hit hard, it forced many companies to work from their homes, especially in Singapore. Many companies are shifting to remote operations and ...

Read more

5 Tips to Build a Company With Culture of Remote Working in Singapore 2021

Remote Working in Singapore – As companies begin to focus on recovering from the pandemic, uncertainty circumstances, however there is one thing to be clear, ...

Read more

Updates on Vietnam labour code 2021

Coming to employment law in Vietnam, the Labor Code 2019, passed by the 8th session of the 14th National Assembly on November 20, 2019, takes ...

Read more
How can we help you thrive? Let's work together