Many reports and financial details must be filed for inspection by and submitted to the tax authorities, no matter what country one is based in. These matters are difficult for anyone to handle, and such is true in Indonesia as well. Complying with payroll regulations can be a burden for those who choose to set up a company in Indonesia. For this reason, assistance with the payroll of a company is available for the many companies who plan to take advantage of the growing economy of Indonesia. The Investment Coordinating Board of the Republic of Indonesia (BKPM) works with both businesses and the government. BKPM is the organization which will serve as the go-between. Limited liability companies typically take between five and 10 business days to obtain an initial approval, though complete approval may take longer. Applicants will also have to get a tax number through the Tax Office. It is BKPM’s job to improve foreign relationships and workers’ conditions. Certain sectors may be closed off to foreign investments based on the economic climate. Companies do not need to set up a bank account in Indonesia but doing so is highly encouraged. Applicants will need the initial approval from BKPM, a tax number, a Deed of Establishment, and a domicile letter. Once everything has been settled with BKPM, the services and assistance which become available to the company may make management of the company’s payroll a simpler task.
Payroll Management in an Average Indonesian Company
Payroll management is one of the most important aspects of running a business. Without a proper payroll system, it is very difficult to keep a business in operation. The employees are to be paid every month according to their working hours or contracts. These payments must, of course, be of the correct value on time. Having payments done correctly and paying employees accordingly is a time-consuming task. As a business grows, the work increases; thus, business owners ensure that they are not overwhelmed by what may sometimes be an excessive workload. Payroll processing in Indonesia or anywhere else in the world needs accuracy. In Indonesia, the regulations on labor, accounting, auditing, and tax reporting are not easy as the rules are changed quite often. Therefore, finding a trustworthy firm which specializes in payroll services in Indonesia is a must at some point. While most small companies keep their payroll management in-house, some other companies choose to make the switch to outsourcing their payroll management services. They do so because outsourcing of payroll services can often save much time and money while at the same time reducing the business owner’s workload.
We at Paul Hype Page & Co provide outsourcing of payroll management and other accounting services. We will help your company save much money and time through the use of our services. They will allow you to then place more emphasis on other important aspects of the operation of your company.
Average Salaries in Indonesia
Salaries in Indonesia range between 2,124,574 rupiah per month to 69,506,253 rupiah per month. The median salary is 15,225,563 rupiah per month; this implies that half of the population earn less than 15,225,563 rupiah every month while the other half earn more than this figure. The 25th and the 75th percentiles of salaries in Indonesia also reveal some interesting information. According to the salary distribution of Indonesia, 25% of the population earn less than 7,807,562 rupiah every month while 75% of them earn more than that figure. On the other hand, 75% of the population earn less than 39,823,954 rupiah per month while 25% earn more than that amount.