Document background
The Contractor Offer Letter is a crucial document used in Indonesia when engaging independent contractors for specific projects or services. It serves as the initial formal communication of engagement terms while complying with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and Government Regulation No. 35 of 2021. This document is typically used when a company needs to engage professional services on a non-employment basis, requiring clear differentiation from regular employment relationships. The letter includes essential terms such as scope of work, compensation, and duration, while addressing specific Indonesian regulatory requirements regarding contractor classifications, social security obligations, and tax considerations. It forms the foundation for the contractor relationship and often precedes more detailed service agreements.
