Negotiating salary and benefits in Indonesia

Hello everyone,

Better job prospects in Indonesia can most certainly be an incentive to leave your country of origin. Securing a contract with the right salary and benefits for you can be crucial to make your move successful.

Is salary and benefits negotiation regarded as common practice in Indonesia? If yes, how should you go about negotiating your package (during the hiring process, on a monthly/yearly basis...)?

What do you expect to be included in terms of benefits in your package? Which benefits do you deem necessary in Indonesia?

Is tax on the salary of an expat applicable in Indonesia or do you have to turn to tax bodies in your country of origin to pay your taxes?

Do the exchange rates of currencies impact your salary as an expat?

Looking back, are there some changes you would have made during the negotiation of your salary and benefits package?

Thank you for sharing your experience,

Bhavna

Tax - You must have an MPWP number but the company should sort out all the messing around. Tax was paid at source for every job I've had so I had nothing to do as far as tax was concerned.

I would expect to have a full expat package to include housing, car and driver, a maid/cook, international schooling for my children, a flight home for my family once a year, possibly membership to an expat club, full medical insurance for my family. I'd also expect to be paid in US Dollars.

I was once offered a nice package to be based in Surabaya when I was working with Kodeco offshore Madura Island in Java that would have paid a great salary, housing, car with driver and a maid as well as a more senior position, but it meant giving up the really nice expat lifestyle that I was having living in Singapore at the time.

This very much depends on who you are, an English teacher working for a language mill starting on around 10 million per month, then moving up from there.
All should come with flight tickets as I gather the law demands that much.

Hi Bhavna,

As per your query, I would just share my experience since I am in Jakarta, Indonesia for many years now.
Depending on the job, I would say, you need to (may be) negotiate the salary offered to you. Basically, expats are eligible to get a work visa sponsored by the employer, a furnished apartment or housing allowance, medical insurance, return airfare to your country and some companies also provide the transport allowance or pick up service.
You, however, may not negotiate in everything mentioned about, just salary is negotiable. Also, if you don't like the housing provided by them, you may ask for betterment.
Overall, working and living in Jakarta (since it's so far the capital) is an enjoyable experience despite its heavy traffic issues and pollution getting worse these days.

Bhavna,
Though I can't help you in this regard, I wish you all the best.
Theo

I m looking forward working in Indonesia how I can get job in there how is the recruitment process over there .. I m trying online but no revert msg or any reply, how I can apply or search job in Indonesia

Trying to find a job in Indonesia is not easy, and probably easier if you are a western teacher or if you find a high level job through a headhunting company. That's not to say you won't find a job. If I were looking for a job I would not be looking in Indonesia.

Hiteshkumar wrote:

I m looking forward working in Indonesia how I can get job in there how is the recruitment process over there .. I m trying online but no revert msg or any reply, how I can apply or search job in Indonesia


Depends hugely on what job it is you want/ trade and qualifications
Most engineering jobs and international companies (for example) are not advertised locally but overseas or on the international recruiting websites and/ or the company website. It's more of a trend for this to be handed to a third party company to hire individuals certainly in the last 10 years or so, you will have more of a chance researching a company to see if they use a third party otherwise your wasting your time and will have zero chance due to contract legalities
My job was advertised locally (uk, AUS and USA) / internally in the Middle East only and no other place as it was a expat they wanted
Jobs advertised locally unless specifically state any nationality or expat proffered / native English speaker etc forget it,
Research overseas companies in what country you want it's a lot easier than people say, but of course that will depend if you have a specialist skill if so extremely easy if not may take some time