Indonesia is not the easiest place to start or run a business in general. According to the latest World Bank’s Doing Business index, Indonesia is ranked 73rd in terms of ease of doing business. One of the main obstacles in doing business in Indonesia is obtaining the obligatory permits and licenses; this can be time-consuming and expensive. In order to effectively start and expand a business in Indonesia, it is also essential to build a network with domestic business players and the Indonesian government. Foreign entrepreneurs must understand how important business networking is and make efforts to develop and to maintain their business circles.
Fortunately, President Joko “Jokowi” Widodo is aiming for the country to achieve 40th position on the ease-of-doing-business index, meaning that the government will continue to make efforts to make it easier for foreign entrepreneurs to start or expand their business in Indonesia.
Possible Problems When Doing Business in Indonesia
Starting a business in Indonesia comes with the obligation to comply with its labor-related regulations and policies. This can be overwhelming, not only for the business owner but also for those working in the human resources department. When it comes to workforce, HR staff must familiarize themselves with a handful of policies including HR regulations and labor laws in Indonesia.
While providing a fair salary is the responsibility of the business owner, it is HR that carries the duty to make sure employees are paid the amount they deserved. Those in HR bear the responsibility to make accurate calculations for payroll, allowance, overtime pay, and income tax deductions. Failure to pay employees in accordance with applicable rules can cause problems that may eventually threaten the continuation of a business in Indonesia. Therefore, making sure you have prepared the necessary measures to address any possible problems before starting a business in Indonesia is of high importance.
A better, smarter, more practical alternative to adding more burden to your starting step, however, is to hire experienced services to help you from the get-go.
An Easy Solution to the Complicated Payroll Calculation
Such services are available in various forms for various needs; one of it being payroll software that can automatically calculate your company’s payroll with minimal human effort in the process.
Gadjian is among the leading and most reliable software when it comes to this. It is a cloud-based payroll software in Indonesia that helps companies in managing employees. Gadjian is designed to make a quick and accurate calculation of salary, including allowance, overtime pay, and income tax deductions (PPh21). It can also be used to manage administrative data, such as permits and leaves, which have impacts on the amount of wage due.
As the leading HR software in Indonesia, Gadjian has helped a large number of Indonesian startups to calculate payroll and manage administrative data related to employees. Now, it is your turn to try it and let the powerful payroll software do all the complicated payroll calculations for you.
With Gadjian, you can save a lot of time by not letting your work be interrupted by issues that can otherwise be delegated to this efficient software.