Planning a workation in Bali or a business trip to Jakarta? Here’s essential information to help you and your employees work safely and compliantly while traveling in Indonesia, including working conditions, safety, health regulations, tax treaties, social security, and more.
Capital city
Jakarta
Telephone code
+62
Official language
Indonesian
Currency
Indonesian Rupiah (IDR)
Time zone
UTC+7 to UTC+9
Social security compliance
When working remotely abroad, your employees may become subject to the social security scheme of the destination country, which means you, as an employer, would need to pay social security premiums accordingly. Indonesia has a mandatory social security system (SJSN) that includes health, work accident, old age, pension, and death benefits.
To ensure your employees remain compliant with these treaties, they must possess a valid Certificate of Coverage (CoC) obtained from the relevant local authorities. For WorkFlex users, the CoC is issued automatically after a trip request is submitted. Discover our solution for efficient social security risk mitigation here.
Tax compliance
Tax compliance in Indonesia involves adhering to the rules, regulations, and provisions set by the tax authorities. It encompasses fulfilling various tax-related obligations, such as timely filing of returns, accurate reporting of income, and payment of taxes as per the prescribed schedules.
The issue of Permanent Establishment remains a significant compliance concern for employers with employees temporarily working in Indonesia. If a traveling employee is deemed to constitute a Permanent Establishment in Indonesia, the employer may be required to:
- Register the company locally
- Allocate profits to the local business (branch)
- File corporate taxes
- Comply with various local regulations
To avoid this scenario, follow the guidelines mentioned in the "Working" section.
Overriding local employment provisions
Employees traveling to Indonesia are expected to comply with some basic local employment provisions that may be qualified as overriding, such as minimum salary standards. See the recent information on minimum wage in Indonesia here.
Visa
To work legally while in another country, employees generally need a valid work title. It's important to keep in mind that the consequences of entering without the proper documentation can be significant for both the employee and the employer.
For those planning work-from-anywhere trips to Indonesia, here's a quick overview:
- Visa-Free Entry: Available for many nationalities for stays up to 30 days
- E-Visa: Can be obtained online before travel
- Visa on Arrival: Available at major entry points for eligible nationalities
- Digital Nomad Visa: Indonesia offers the Second Home Visa program, specifically designed for remote workers and digital nomads.
Need trip-specific visa information? Check out WorkFlex Visa Navigator.
For those planning business trips to Indonesia:
- Visa-Free Entry: Available for limited business activities up to 30 days
- Standard Visa: Required for selected business activities
- E-Visa: Available for business purposes
- Visa on Arrival: Obtainable at major entry points
Need trip-specific visa information? Check out WorkFlex Visa Navigator.
Working hours
Most employees in Indonesia work from Monday to Friday, with a standard workweek consisting of 40 hours. The typical workday usually starts at 8:00 AM and ends at 5:00 PM, often including a lunch break of about 1 hour.
To remain compliant during your trip abroad, here are some suggestions to follow:
- Avoid working overtime: Regulations regarding overtime can differ significantly and may be much stricter compared to those in your home country.
- Refrain from working outside regular hours: The rules surrounding working outside regular hours may vary and could be stricter than in your home country.
- Do not work on weekends: If the weekend days differ from those in your home country, please avoid working on both your regular weekend days and the local weekend days.
Public holidays
- January 1: New Year's Day
- February (varies): Chinese New Year
- March/April (varies): Good Friday
- April 21: Kartini Day
- May 1: Labor Day
- May (varies): Ascension Day of Jesus Christ
- May/June (varies): Vesak Day
- June (varies): Birth of Pancasila
- July/August (varies): Islamic New Year
- August 17: Independence Day
- September/October (varies): Prophet Muhammad's Birthday
- December 25: Christmas Day
Islamic holidays (dates vary by Islamic calendar):
- Eid al-Fitr (2 days)
- Eid al-Adha
- Isra Mi'raj
- First of Muharram
Depending on the region you're visiting, there may be additional region-specific public holidays. For more information about these holidays, please check here.
To comply with labor laws, please refrain from working on national or regional holidays during your trip. These days hold significant importance for locals and provide a great opportunity for you to blend in and celebrate with the community.
Working activities
When considering travel for work purposes—whether for a workation or a business trip—it is crucial to understand the implications of Permanent Establishment (PE) and associated tax risks. PE is a significant compliance concern for companies and can become costly due to the administrative burden if the compliance requirements for employees working abroad are not properly managed. To help mitigate these risks, here are a few guidelines to follow.
If you are traveling for a workation, please:
- Refrain from negotiating or signing sales contracts during your trip.
- Avoid visiting clients or any office, including your employer's local office in the destination country.
Following these guidelines will help mitigate the important compliance risks related to Permanent Establishment for your employer.
If you are a business traveler, it may be difficult to avoid the activities mentioned above. In this case, please ensure you inform your employer's compliance department about this matter. If you and your organization are WorkFlex users, this topic is addressed through the WorkFlex platform.
Data protection
Data protection is fundamentally about keeping our information safe from unauthorized access, breaches, theft, or damage. This responsibility is important for everyone, regardless of where they are working.
When employees work temporarily from abroad, data protection involves ensuring continued coverage and compliance with the data protection regulations of both, the home country and the destination country. Indonesia has implemented Personal Data Protection Law (PDP Law), which came into effect in 2022. Its level of regulation and enforcement is characterized as robust. That means the data protection laws are well-established with strong safeguards and regulatory mechanisms. While comprehensive, enforcement may be less stringent in certain areas compared to "heavy" regimes, learn more about it here.
For WorkFlex users, a comprehensive list of data protection activities is available in the profile, but here are some general data protection guidelines to keep your data safe:
- Adhere to Your Company's Internal Data Policies: Familiarize yourself with and follow your organization’s specific data protection protocols.
- Use Secure Network Connections: Always connect through secure networks, especially when accessing sensitive information.
- Be Aware of Phishing: Stay vigilant against phishing attempts by verifying the authenticity of emails and messages before clicking on any links.
- Utilize Strong Passwords and Multi-Factor Authentication: Create complex passwords and enable multi-factor authentication for an added layer of security.
- Keep Your Devices in a Secure Location: Always store your devices in safe places to prevent unauthorized access.
- Lock Your Screen Whenever Applicable: Ensure your screen is locked when you're away from your device to protect your information.
Travel health insurance
When traveling to Indonesia for work—whether for a short business trip or an extended workation—it's essential to have comprehensive health insurance coverage to ensure access to medical care.
For business trips, the employer typically arranges the employee's travel health insurance. However, for workations, these responsibilities can be less clear. WorkFlex takes care of travel health insurance for trips worldwide to ensure there are no costly consequences for either the employee or the employer if accidents occur while working abroad.
For travelers using WorkFlex
If you’re traveling with WorkFlex, comprehensive health insurance is automatically included if your employer has activated this feature. For more details, please refer to your trip request on the WorkFlex platform.
For other travelers
Ensure you have travel health insurance with worldwide coverage, whether for a workation or business trip, so that you can receive adequate medical treatment in case of an emergency.
Urgent safety information
For travelers using WorkFlex:
Please refer to your trip's risk assessment under the "Health and Security" dimension to review any urgent security information relevant to your travel.
For other travelers:
Please visit official authority websites to check for any current threats or urgent security advisories:
Terrorism
Indonesia faces an elevated risk of terrorism, with past attacks targeting urban areas and tourist hotspots. The risk remains particularly high in locations such as Jakarta, Bandung, Medan, Makassar, Surabaya, and Bali.
Potential targets:
- International hotels
- Shopping malls
- Nightclubs and entertainment venues
- Airports
- Christian churches
- Establishments frequented by Western or non-Muslim visitors
High-Risk Periods and Events:
- Ramadan and related holidays
- Independence Day (August 17)
- Christian holidays, such as Easter and Christmas
- Cultural festivals like Balinese New Year (Nyepi) and Chinese New Year
- Political events, especially during elections
Recommendations:
- Maintain heightened awareness in crowded spaces, especially during events and holidays.
- Avoid large gatherings and monitor local advisories regarding potential risks.
Crime
Crime rates vary, with specific risks for tourists and expatriates.
Key threats:
- Drug laws: Indonesia enforces some of the world’s strictest penalties for narcotics, including severe consequences for small quantities or even transit violations. Avoid carrying over-the-counter medications without proper documentation or items for others.
- Pickpocketing and theft: Common in public transportation, busy markets, and tourist areas.
- Armed robberies: Occur, particularly in urban areas.
- Scams: ATM cash withdrawal schemes, credit card fraud, and incidents involving knockout drops are reported.
- Motorcyclist assaults: Women and solo travelers are at greater risk, especially in Jakarta.
Safety recommendations:
- Avoid illegal substances or items of unknown origin.
- Secure money, ID, and valuables in a safe place, and maintain digital backups of important documents.
- Use cashless payments and carry only minimal cash.
- Opt for trusted taxi services like Bluebird or Silverbird, and avoid unregistered transport providers.
- Monitor drinks and keep credit cards in sight during transactions to avoid tampering or fraud.
- If renting a car, stop only in secure areas and keep doors and windows locked.
- Verify unsolicited communications to avoid scams, and contact the police if unsure.
Indonesia has a tropical climate with two distinct seasons:
- Dry Season (April to October): Lower humidity, minimal rainfall, temperatures 25°C to 33°C (77°F to 91°F)
- Wet Season (November to March): High humidity, frequent rainfall, temperatures 24°C to 32°C (75°F to 90°F)
- Year-round conditions: Humid tropical climate, consistent temperatures
- Regional variations: Highland areas cooler, coastal areas more humid
Airports
Soekarno-Hatta International Airport (CGK)
- Location: Jakarta
- When to use: Major gateway for international travelers to Indonesia.
Ngurah Rai International Airport (DPS)
- Location: Bali
- When to use: Ideal for travelers heading to Bali and surrounding areas.
Juanda International Airport (SUB)
- Location: Surabaya
- When to use: East Java access, regional connections
Train stations
Gambir Station, Jakarta
The most well-connected for domestic travel, making it the go-to option for travelers within Indonesia.
Surabaya Gubeng Station
Offers extensive domestic connections and is a major hub for travelers in East Java.
Ride-hailing services
- Gojek
- Grab
- Local taxis
Public transportation
Buses and trains
Most cities have a local bus network, and intercity buses and trains connect major destinations affordably.