Business Outsourcing

Why Businesses Must Consider Outsourcing?

Cost savings for full-time employees;
Improved productivity of the workflow;
Controlled risk from professional advice and experience;

Services include

Accounting & Bookkeeping

Corporate Secretarial

Payroll

Frequently Asked Questions

What is XERO?
Xero is an online accounting software that runs smoothly, keeps records well, and simplifies compliance. This software could automates tasks like invoicing, reporting and provides a full financial picture of your business. Xero also enables employers to work with an accountant, bookkeeper, or employees, everywhere at any time. This software has a lot of features, such as setting up bank transactions automatically, see an up-to-date picture of your cash flow, pay bills, claim expenses, financial reporting, and many more.
What is WLKP?
WLKP (Wajib Lapor Ketenagakerjaan Perusahaan) is one of the employment services on the kemnaker.go.id portal related to company information. According to UU No. 7 Year 1981, every company has an obligation to report in writing when establishing, stopping, re-operating, transferring or dissolving a company and renew it annually to the Minister of Manpower or an appointed official. WLKP itself must contain information such as company identity, employment relations, labor protection, and employment opportunities. By registering the Company through WLKP, they will automatically be registered in the Ministry of Manpower database which will later be used by the government to provide better services related to employment. 

In the regulation, it has been explained that the sanction of imprisonment is at maximum of 3 months or a maximum fine of Rp. 1,000,000 if the company does not carry out its obligations to report company data, either after its establishment or an annual extension. The report must be submitted no later than 30 days. WLKP is also mandatory if the company wants to apply for a permit to use foreign workers.

What is BPJS?
BPJS is an abbreviation of Badan Penyelenggara Jaminan Sosial, which is a special institution tasked with administering Indonesia’s social security. This program was started in 2014 under UU No. 24 Year 2011. All Indonesian citizens are required to participate in the BPJS program. This includes foreigners and workers who are domiciled in Indonesia for at least 6 months and pay dues.

This institution provides two types of programs, which are BPJS Ketenagakerjaan (Employment Program) and BPJS Kesehatan (National Health Program). BPJS Ketenagakerjaan consists of Accident at Work Security (JKK), Death/Funeral Security (JKM), Old Age Saving (JHT), Pension Plan (JP), and Unemployment Insurance (JKP) which is applicable to employees. Meanwhile, BPJS Kesehatan covers the National Health Insurance (JKN) program which provides comprehensive medical services through step-by-step referrals according to the patient’s medical indications. JKN is intended to cover all Indonesians and foreign residents of Indonesia (i.e. not only employees).

Why should I engage Cedar to assist with Payroll?

Cedar’s payroll outsourcing services will ensure that clients can count accuracy, security and privacy as key aspects of payroll, as well as getting access to our technology and expertise in manpower compliance matters. Our Services:

  • Monthly payroll calculation including bonuses, allowances, overtime, employee income tax, social security contributions, and take-home pay
  • Produce bank file and provision of client account for take-home pay
  • Produce and distribution of e-Payslips
  • Produce monthly reports including salary report, tax report, and reimbursement report, etc. 
  • Administration and payment of employee income tax and social security
  • Annual employee income tax report and tax slip
How can Cedar help us in our bookkeeping and what does this service include?

In partnership with award-winning cloud accounting software, Cedar is capable of setting up your chart-of-account at the initial, maintaining your transactions and bookkeeping, and producing financial statements in accordance with the Indonesian Accounting Standards on monthly basis. This will ensure the clients have proper and timely records and reports:

  • Balance Sheet and related Schedules
  • Profit and Loss Statement
  • Statement of Cash Flow
  • Fixed Assets Register
  • General Ledger

Our Services:

  • Monthly Bookkeeping;
  • Indonesian Chart of Account Set-Up;
  • Accounting Policy Advisory
  • Annual Financial Report for Income Tax Submission
What is THR in Indonesia?
Religious Holiday Allowance or commonly called THR is one of the efforts to meet the needs of workers and their families in celebrating Religious Holidays where the government requires employers to provide THR to their workers. THR is worker’s income rights that must be paid by employers to workers ahead of Religious Holidays in the form of money. Religious holidays here are Eid al-Fitr for Muslim workers, Christmas Day for Catholic and Protestant Christians, Nyepi Day for Hindu workers, Vesak Day for Buddhist workers, and Chinese New Year for Confucian workers. The THR regulation is explained in more detail in Minister of Manpower Reg. No. 6 of Year 2016.
What is the best way to reimburse employees?
Employee reimbursement is one of those financial process which is quiet time consuming. The process might start with the employee filling out a certain form, scan all the receipts into one file and submit it to finance department. Finance team will work on verifying the data, processing, approving the claims and then paying the employee back. Hence, Xero Expense could be one of the solutions. Xero Expenses is a claim management tool that helps businesses reduce the time spent tracking and managing employees’ expenses. Through Xero Expense, employees can easily capture receipts and make claims for work expenses on their mobile device through mobile apps and employers can easily approve the employees’ expenses in one click.

 

Can a PMA company employ expatriates in Indonesia?

PMA companies can employ expatriates (TKA/Tenaga Kerja Asing) in Indonesia. Companies need to have a Permit to Use Foreign Workers (IMTA), which is a license that must be owned for every foreign worker employed by business activities in the context of investment by PMA/PMDN who use labor in their activities. IMTA is valid for a period of 1 (one) year and can be extended further. The IMTA application procedure is submitted by investors for each foreign worker employed to the Director for Controlling the Use of Foreign Workers (Ditjen P2TKA), the Directorate General of Manpower Placement Guidance at the Ministry of Manpower and Transmigration through the service counters available at the P2TKA Directorate or at BKPM.

Can I conduct transaction in Indonesia using non-Rupiah currency?

Indonesia’s central bank, Bank Indonesia, issued BI Rule No. 17/3/PBI/ 2015 (“BI Rule 17”) on the compulsory use of rupiah in the Republic of Indonesia dated March 31, 2015. The use of rupiah limits the use of foreign currency in domestic transactions conducted on Indonesian territory. However, there’s an exemption on the mandatory use of Rupiah, if it is:

  • certain transactions in the framework of implementing state revenues and expenditures;
  • acceptance or provision of grants from or overseas;
  • international trade transactions;
  • savings at Banks in the form of foreign exchange; or
  • international financing transactions.
Is there a mandatory requirement to have audited accounts?

According to Article 68 Paragraph (1) UU No. 40 Year 2007 regarding Limited Liability Companies (UU PT), it is only mandatory for the financial statements of a limited liability company to be audited by a registered public accountant if they meet one of the following criteria:

  • The activities of the Company are to collect and/or to manage the community’s fund (such as banks and insurance companies);
  • The Company issues a debt instruments;
  • Public companies;
  • The company is a state-owned enterprise; or
  • The Company owns assets and/or business with the minimum value of Rp 50.000.000.000,00 (fifty billion rupiah).