Indonesia Remote Work Laws 2026

19.1 General Remote Work Questions

Q1: Does Indonesian law specifically regulate “remote work” or “telework”?

A: Indonesian labor law does not currently have comprehensive specific statutory provisions addressing “remote work” or “telework” as distinct categories. Remote work arrangements are governed by the general employment framework established in Law No. 13/2003, Law No. 6/2023 (Job Creation), Government Regulation No. 35/2021, and Government Regulation No. 36/2021. Recent Ministry of Manpower circulars acknowledge “work from anywhere” arrangements, indicating growing regulatory recognition.

Q2: Is remote work voluntary or mandatory in Indonesia?

A: Remote work in Indonesia is based on mutual agreement between employer and employee. There is no statutory right for employees to demand remote work, nor is there an employer obligation to offer remote work. Arrangements must be mutually agreed through employment contracts, company regulations, or collective labor agreements.

Q3: Must remote work arrangements be in writing?

A: While Law No. 13/2003 allows oral employment agreements for indefinite-term contracts, written agreements are strongly recommended for remote work to clearly specify work location, equipment provisions, working hours, and other terms. PKWT (fixed-term contracts) must be in writing and must be in Indonesian language.

19.2 Employment Terms Questions

Q4: Do remote workers receive the same minimum wage as office-based workers?

A: Yes. Minimum wage requirements (Provincial Minimum Wage – UMP or Regency/City Minimum Wage – UMK) apply equally to remote workers. Employment agreements should clarify which minimum wage applies if employee works from location different from employer’s registered address.

Q5: Are remote workers entitled to the same benefits as office-based workers?

A: Yes. Remote workers are entitled to equal treatment regarding wages, benefits, annual leave, social security enrollment, and other employment terms. Remote work status cannot diminish statutory entitlements.

Q6: What are the maximum working hours for remote workers?

A: Government Regulation No. 35/2021 establishes maximum working hours of 7 hours/day for 6-day work week or 8 hours/day for 5-day work week, with 40 hours/week maximum. These limits apply equally to remote workers.

Q7: Must employers pay overtime to remote workers?

A: Yes. Work performed beyond normal working hours constitutes overtime and must be compensated at statutory overtime rates, regardless of whether work is performed remotely or in office.

19.3 Practical Implementation Questions

Q8: Must employers provide equipment for remote workers?

A: Indonesian law does not explicitly require employers to provide remote work equipment. Equipment provision (computers, phones, etc.) is determined by employment agreement, company policy, or collective agreement. Best practice is to clearly specify in written agreements which party provides equipment.

Q9: Must employers reimburse internet and electricity costs for remote workers?

A: There is no statutory requirement for employers to reimburse home internet or electricity costs. Reimbursement policies are established through employment agreements or company policies. Many employers provide fixed monthly allowances or reimbursements for these expenses.

Q10: How should employers track remote workers’ working hours?

A: Employers must establish systems to accurately track working hours for compliance with maximum hour limitations and overtime payment obligations. Methods include time tracking software, login/logout systems, self-reporting timesheets, or project management tools. Employment agreements should specify tracking procedures.

19.4 Social Security and Tax Questions

Q11: Must remote workers be enrolled in BPJS Ketenagakerjaan?

A: Yes. All employees, including remote workers, must be enrolled in BPJS Ketenagakerjaan programs (JKK, JKM, JHT, JP, JKP). Remote work status does not affect social security obligations.

Q12: How does remote work affect income tax obligations?

A: Remote work generally does not change income tax obligations for Indonesian tax residents. Employers must withhold income tax (PPh 21) from remote workers’ wages. Tax complications may arise for cross-border remote work arrangements, requiring professional tax advice.

Q13: Are remote work allowances taxable?

A: Tax treatment of remote work allowances depends on how they are classified under Government Regulation No. 36/2021 wage component framework. Fixed allowances may be treated differently from actual expense reimbursements. Consult tax advisors for specific situations.

19.5 Health and Safety Questions

Q14: Are employers responsible for remote workers’ home office safety?

A: While Law No. 1/1970 on Occupational Safety establishes general employer safety obligations, direct employer control over home environments is limited. Employers should provide safe equipment, ergonomic guidance, and safety training. Employment agreements should address respective employer and employee safety responsibilities.

Q15: Does BPJS Ketenagakerjaan work accident insurance cover remote workers?

A: Yes. JKK (Work Accident Insurance) coverage applies to remote workers. Accidents occurring while performing work duties in remote locations may qualify for coverage, subject to case-by-case assessment.

19.6 Leave and Benefits Questions

Q16: Do remote workers get the same annual leave as office workers?

A: Yes. Remote workers are entitled to minimum 12 working days annual leave after 12 months continuous service, equal to office-based workers.

Q17: How do remote workers take sick leave?

A: Remote workers follow same sick leave procedures as office workers, including medical certificate requirements for absences exceeding specified duration. Sick leave entitlements apply equally regardless of work location.

19.7 Foreign Worker Questions

Q18: Can foreign nationals work remotely from Indonesia?

A: Foreign nationals performing work in Indonesia generally require work permits (IMTA) and appropriate immigration status (working KITAS). Using tourist visas or non-work visas to perform work (including remote work for foreign employers) may violate Indonesian immigration law. Foreign nationals should consult immigration attorneys before working remotely from Indonesia.

Q19: What permits do Indonesian companies need to employ foreign remote workers?

A: Employers employing foreign workers must obtain RPTKA (Foreign Worker Utilization Plan) approval and IMTA (Permit to Employ Foreign Workers) from Ministry of Manpower, plus ensure foreign workers have appropriate work visas and stay permits (VITAS/KITAS) from Directorate General of Immigration.

Q20: Can Indonesian citizens work remotely for foreign companies?

A: Indonesian citizens can work remotely for foreign companies, but should be aware of tax obligations on foreign income (if tax resident), questions about social security coverage and employment law protections, and compliance with foreign exchange regulations. Professional advice recommended.

19.8 Compliance Questions

Q21: Must employers register remote work arrangements with authorities?

A: There is no separate “remote work registration.” However, employment agreements (especially PKWT) must be registered with local Manpower Office. If remote work arrangements are incorporated in company regulations or collective labor agreements, those documents must be registered.

Q22: Can labor inspectors inspect remote workers’ homes?

A: Labor inspectors typically cannot enter private residences for inspections without permission. Inspections focus on documentation (employment agreements, wage records, hour tracking, social security enrollment, etc.) maintained at employer’s premises or submitted to authorities.

Q23: What happens if remote workers exceed maximum working hours?

A: Excessive working hours violate worker protection regulations. Employers may face administrative sanctions. Workers may file complaints with labor authorities and claim unpaid overtime compensation.

Q24: What are penalties for not enrolling remote workers in BPJS?

A: Failure to enroll employees in BPJS Ketenagakerjaan or pay contributions can result in administrative sanctions, fines, and requirement to pay retroactive contributions plus penalties.

19.9 Termination and Dispute Questions

Q25: Can employers terminate remote workers more easily than office workers?

A: No. Remote workers have same termination protections as office-based workers. Employers must follow statutory termination procedures, have valid reasons, and pay required severance and compensation. Remote work status is not grounds for easier termination.

Q26: What if employer wants to end remote work arrangement and require office attendance?

A: Changing work location from remote to office constitutes modification of employment agreement (change to “tempat pekerjaan”). Significant changes require mutual agreement. Unilateral changes without employee consent may constitute constructive dismissal.

Q27: Where can remote workers file complaints about violations?

A: Remote workers can file complaints through: local Manpower Office (Dinas Tenaga Kerja), Ministry of Manpower (https://kemnaker.go.id/), labor inspection authorities, and trade unions (if applicable).

Q28: Are there special dispute resolution procedures for remote workers?

A: No. Remote workers use same dispute resolution mechanisms as all workers: bipartite negotiation, mediation through Manpower Office, conciliation/arbitration, or Industrial Relations Court if necessary.

19.10 Practical Advice Questions

Q29: What should be included in a remote work employment agreement?

A: Remote work agreements should specify: work location (employee’s residence, remote location, hybrid arrangement), equipment provision and ownership, expense reimbursement policies, working hours and availability expectations, communication protocols, performance monitoring methods, data security requirements, and duration of remote arrangement.

Q30: Where can I get professional advice on Indonesian remote work regulations?

A: Consult: licensed Indonesian labor law attorneys for legal compliance, qualified Indonesian tax advisors for tax matters, Ministry of Manpower for regulatory guidance (https://kemnaker.go.id/), and BPJS Ketenagakerjaan for social security questions (https://www.bpjsketenagakerjaan.go.id/).