Set Up a Recruitment Company in Indonesia

Updated on Tuesday 16th January 2018

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As one of the largest economies in the world, the Indonesian labor market is in search for new employees all the times. With a local workforce mainly made up of professionals who speak English, finding employees is not difficult, however local companies can also hire foreigners with the help of recruitment agencies.

In the past few years, the number of foreign investors who set up companies in Indonesia has increased and so has their request for employees. Most of them require the services of Indonesian employment agencies because of the strict regulations imposed by the Ministry of Labor and Immigration.

If you want to start an employment agency in Indonesia, you must respect the rules imposed by the same ministry. These rules can be explained by our Indonesia company incorporation agents.
 

Registering a recruitment agency in Indonesia

Employment companies are regulated by Law No. 13 of 2003 which provides for private companies seeking to hire personnel for other businesses. Other than that, the company formation procedure of such business will be completed under the requirements of the Indonesian Commercial Law.

Foreign investors who want to start recruitment companies in Indonesia usually choose the foreign-owned limited liability companies to carry out such activities.

Our local consultants can assist with the registration of this business form.
 

Documents related to starting an employment agency in Indonesia

Local recruitment companies that want to place foreign workers on the Indonesian market must first draft and file a Request Legalization of Foreign Manpower Utilization Plan with the Ministry of Labor. There are several types of requests for hiring foreign employees, depending on the position and the location of job.

The recruitment company will then advertise the job on behalf of the final employer and conduct the tests in order to make sure the potential candidate is suitable for the job opening.

It is also the Indonesian recruitment agency’s role to make sure the candidate fulfills all the legal requirements for working in the country.

If you want to start an employment agency in Indonesia and need information on the required documentation, please contact us. You can also rely on for assistance in registering the company with the Trade Register.

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