Quick Guide To Employment Contracts In Indonesia

Generally, an employment contract in Indonesia can either be a fixed-term (definite) or an indefinite-term (permanent) contract. Fixed-term employment agreements are subject to stricter requirements compared to indefinite-term employment agreements.

A fixed-term employment agreement must be in writing in the Indonesian language or in a bilingual format. Additionally, a fixed-term employment agreement cannot include a probationary period. Indefinite-term employees are employees who do not fall into the category of fixed-term employees. This type of worker is also known as a permanent worker. If a permanent worker is hired without a written employment contract, the employer must issue an appointment letter.