Essential Insights You Need to Know About Hiring Indonesian Tech Talent

 

Hiring talented tech professionals is crucial for companies looking to grow and innovate. For global companies, expanding their team internationally, especially with skilled developers from Indonesia, can be a strategic move. Indonesia offers a large pool of highly skilled software developers, mobile developers, and other tech professionals. Here’s what you need to know about employing Indonesian tech talent and how Intalenta can simplify the process.

1. Why Hire Tech Talent from Indonesia?

Indonesia is becoming an increasingly attractive option for companies seeking tech talent due to its vibrant tech ecosystem and growing pool of skilled professionals. The country’s digital economy is expanding rapidly, supported by a young and tech-savvy population. Leading tech companies in Indonesia, such as Gojek and Tokopedia, have helped foster a competitive and innovative environment, creating a robust talent pool.

Indonesian developers are known for their strong work ethic, adaptability, and ability to work well in diverse, multicultural teams. These qualities make them an excellent fit for global companies looking to build versatile and effective tech teams. With a large number of motivated professionals available, companies can find developers with the precise skills needed for their projects.

2. Working Hours in Indonesia

In Indonesia, the standard working hours are 40 hours per week, typically spread over five days (Monday to Friday), with each day consisting of 8 working hours. Common working hours are from 8:00 am to 5:00 pm or 9:00 am to 6:00 pm. Many companies, particularly in the tech industry, offer flexible working arrangements, reflecting a trend towards accommodating different time zones and work styles.

This flexibility is beneficial for integrating Indonesian tech professionals into international teams. Their experience with cross-time-zone collaboration makes them well-suited for working with global teams, ensuring smooth and efficient integration into your operations.

3. Mandatory Benefits for Indonesian Tech Talent

Employers hiring tech talent in Indonesia are required to provide several mandatory benefits:

• Annual Leave: Employees are entitled to at least 12 days of paid annual leave after one year of service.
• Payroll Tax: Employers must withhold and remit income tax from employees’ salaries according to Indonesian tax regulations.
• Health Insurance (BPJS Kesehatan): Employers are required to provide health insurance through the national social security system.
• Social Security (BPJS Ketenagakerjaan): This includes work accident insurance, death insurance, old-age savings, and pension plans.

These benefits ensure that employees have access to necessary health coverage and financial security, contributing to their overall job satisfaction and well-being.

4. Additional Benefits for Indonesian Tech Talent

Offering additional benefits can help attract and retain top talent in Indonesia. Consider providing:

• Private Health Insurance: Comprehensive health coverage beyond the basic BPJS can be a significant advantage, demonstrating that your company values its employees’ health and well-being.
• Gym Memberships and Wellness Programs: These benefits support a healthy work-life balance, which is particularly important in the high-demand tech industry.
• Professional Development Opportunities: Investing in courses, certifications, and tech conferences can help keep employees’ skills up-to-date and enhance their job satisfaction.

These additional perks not only attract top talent but also foster a positive work environment, boosting employee retention and morale.

5. Average Salary of Indonesian Tech Talent

Here’s a comparison of average salaries for tech talent in Indonesia versus Europe:

Role	Salary Range in EUR (Indonesia)*	Salary Range in EUR (Europe)*
Backend Developer	€1,287 – €2,046	€55,000 – €85,000
Frontend Developer	€1,461 – €2,515	€50,000 – €75,000
Android Developer	€1,638 – €2,632	€60,000 – €90,000
iOS Developer	€1,754 – €3,509	€65,000 – €100,000
Quality Assurance	€819 – €1,461	€45,000 – €65,000

*Based on data and currency as of September 5, 2024

The salaries in Indonesia are for mid to senior levels and already include taxes and all legal benefits as per the country’s regulations. In contrast, the salary data for Europe reflects figures gathered from multiple sources such as Payscale, Glassdoor, and Indeed, which represent average ranges based on current industry standards across various European countries. This comparison highlights the significant cost advantage of hiring Indonesian tech talent, offering highly skilled professionals at a competitive cost for global tech teams.

6. The Importance of Probation Periods

Probation periods, typically lasting three months in Indonesia, are a common practice that allows both the employer and employee to assess fit and performance. This trial period helps ensure that the new hire’s skills and work style align with company expectations, and vice versa. It also allows employees to evaluate if the role and company meet their career goals.

Implementing a probation period can reduce the risk of hiring mistakes and facilitate better long-term employment relationships.

7. How to Find and Manage Tech Talent in Indonesia

Navigating the Indonesian job market and managing local regulations can be complex. That’s where Intalenta can assist. As a specialized HR firm, Intalenta connects global companies with highly skilled and motivated Indonesian tech talent. We handle the entire hiring process, from finding the right candidates to managing local compliance and regulations. Additionally, Intalenta operates on a success-based model, guaranteeing up to three replacements or changes during the probation period to ensure you meet your matched talent. This allows companies to seamlessly integrate Indonesian tech professionals into their teams without the administrative burden.

Ready to explore Indonesian tech talent for your business? Contact Intalenta today to discover how we can help you find and manage highly skilled and motivated developers, and seamlessly integrate them into your global team. Let’s build your tech team together!