Employment Contracts In Indonesia

In general, an employment agreement in Indonesia shall be entered into for either a fixed or an indefinite term.

Fixed-term employment agreements are subject to more strict requirements than indefinite-term employment agreements. A fixed-term employment agreement must be in writing and in the Indonesian language. The parties typically provide that the English version of a bilingual agreement will prevail in the event of a conflict or inconsistency. If not in writing, a fixed-term employment agreement is deemed an indefinite-term employment agreement. Additionally, a fixed-term employment agreement cannot include a probation period.

A fixed-term employment agreement that is based on a certain period of time (unlike seasonal contracts, etc.) may last for up to two years, and may be "extended" once for a maximum period of one year. Then, after a grace period of at least 30 days, it can be "renewed" one time for a maximum period of two years.