Guide to hiring Software engineers in Indonesia

In recent years, there has been a significant leap in demand in the technology industry globally. This has resulted in more companies seeking to expand their talent pools in the field of e-commerce platforms, IT services, and software development,

Indonesia’s workforce has seen exponential growth in technological proficiency as a response to the expanding tech ecosystem. This has led to a growing number of software engineers and IT professionals in the Indonesian market, making it an ideal location for foreign companies to source top talent for software engineering and IT.

This guide will give insights on hiring software engineers in Indonesia to meet your company’s IT and e-commerce operations.

A look at the growing IT talent pool in Indonesia

Benefits of the Indonesian tech workforce

As the tech startup and digital services markets have continued to grow, Indonesian professionals are increasingly digital-savvy and well-versed in utilizing the latest technologies and digital tools. This proficiency enables them to adapt to remote work environments, collaborate effectively with cross-border operations, and implement innovative solutions.

With more and more Indonesian universities producing software engineering and IT graduates of strong technical backgrounds, there are several benefits to hiring software engineers in Indonesia’s thriving tech community for your IT needs:

• Young and dynamic workforce, with the average age being 29 years old
• Indonesian workers are known to be quick learners, capable of embracing new technologies and business practices
• 83% of software engineers and IT professionals are proficient in Java
• 73% of software engineers and IT professionals are proficient in Javascript
• Tech talents in Indonesia are ranked 45 in the world

Popular Software Engineering and IT positions

Due to the growing community of tech professionals in Indonesia, it is possible to source local talent for many specific skills that are currently in high demand for foreign e-commerce companies and tech startups, such as knowledge of Python, SQL, PHP, and other programming languages.

This versatility in terms of digital proficiency makes the Indonesian talent pool a popular sourcing location for some of the most popular positions in e-commerce and tech startup companies:

1. Back End Developers
2. Front End Developers
3. Android Developer
4. Website Engineer
5. Full Stack Engineer

How to distinguish yourself from the competition and attract the best Software engineers in Indonesia

Competitive salary rates for the most popular positions in Indonesia

Due to the increasing demand for tech professionals in nearly every international market, there are some key recommendations that you should consider if you want to distinguish yourself from your competition and attract and retain the most qualified Indonesian software engineers.

One of the most important factors for hiring software engineers in Indonesia is ensuring that you meet the standard  expected salary ranges for the most popular positions:

Navigating the expected compensation standards for Software engineering positions in Indonesia

Salary levels in Indonesia are considered good for the right talent while remaining more advantageous than for hiring in similar roles in Western countries. To ensure that your company stands out for prospective employees, it is best practice to offer additional compensation benefits:

• Overtime pay
• Paid annual leave
• Festive Leave pay
• Healthcare benefits
• Retirement contribution benefits
• Performance bonuses
• Annual incremental salary increases

It is not necessary to only tailor your benefits package to workforce law. In some cases, it can be more mutually beneficial to determine the benefits that are most appealing to your employees and prospective employees through collective bargaining. To learn more about current Indonesian hiring standards, check out RecruitGo’s employer handbook!

How RecruitGo can make your hiring process more efficient

RecruitGo’s team of advisors can help you with every step of the process of hiring software engineers in Indonesia. Beyond offering you feedback and advice on compensation and benefits, we can help you set up a complete team in Indonesia. This includes acquiring premium office space and setting up equipment to provide you with a higher-performing team.

RecruitGo will also process employee payroll for you, ensuring that salaries are calculated correctly and in full compliance with Indonesian laws. Our payroll process is quick and simple:

1. You provide the necessary employee documentation and salary details.
2. RecruitGo registers your employees for health and social insurance with the labor department to ensure local compliance.
3. RecruitGo will calculate salaries, overtime, benefit deductions and employment taxes for your employees through our payroll management service.
4. We also handle the submission of Personal Income Tax (PIT) quarterly and annual declarations.

Partner with an Employer of Record to start hiring quickly and efficiently

If you want to take advantage of Indonesia’s thriving IT labor market and hire the best Software Engineers without having to set up a local entity, then you should consider partnering with an Indonesian Employer of Record (EOR).

As your EOR, RecruitGo will act as the legal employer for your Indonesian professionals. Our team is well versed in Indonesian hiring and compliance practices and will therefore be able to offer insightful advice in every step of the hiring process. 

This cost-effective solution will allow you to start hiring employees virtually immediately while allowing you to continue to focus on what you do best. You will also be able to take advantage of our extensive network of software development, IT, and e-commerce professionals. Contact us via the form below to book a consultation with one of our advisors!