Internal Offer Letter Template for Indonesia

This document serves as a formal employment offer letter compliant with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and related regulations. It outlines the essential terms and conditions of employment, including position details, compensation package, benefits, and working arrangements. The letter functions as a preliminary agreement before the formal employment contract and must incorporate mandatory provisions required by Indonesian labor legislation, including details about social security (BPJS) participation, working hours, and leave entitlements. The document needs to be drafted in accordance with local employment regulations while maintaining clarity and professionalism in communicating the employment terms.

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What is a Internal Offer Letter?

The Internal Offer Letter is a crucial document in the Indonesian employment process, serving as the initial formal communication of employment terms between an employer and a potential employee. This document type is used when a company has selected a candidate and wishes to formally extend an employment offer, whether for permanent or fixed-term positions. The letter must comply with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and its implementing regulations, while clearly communicating the essential terms of employment. The Internal Offer Letter typically precedes the more detailed employment agreement and should include all mandatory elements required by Indonesian law, such as position details, compensation structure, benefits, and working arrangements. It serves as a preliminary agreement that, once accepted, creates a binding commitment subject to any conditions specified in the offer.

What sections should be included in a Internal Offer Letter?

1. Company Letterhead and Date: Official company letterhead with complete legal entity name, address, and date of the offer

2. Recipient Details: Full name and address of the prospective employee

3. Position and Role: Specific job title, department, and reporting relationship

4. Employment Status: Clear indication of whether the position is permanent or fixed-term, and expected start date

5. Compensation Package: Base salary, allowances, and other monetary benefits in accordance with Indonesian wage regulations

6. Working Hours and Location: Standard working hours, work location, and any flexibility arrangements

7. Benefits: Mandatory benefits including BPJS (social security and healthcare) and other company-provided benefits

8. Leave Entitlements: Annual leave, sick leave, and other statutory leave entitlements

9. Probation Period: Duration and terms of the probationary period as per Indonesian labor law

10. Acceptance and Response: Instructions for accepting the offer and deadline for response

11. Signature Block: Space for authorized company representative's signature and company stamp

What sections are optional to include in a Internal Offer Letter?

1. Performance Bonus Structure: Include when the role is eligible for performance-based bonuses or commissions

2. Mobility Clause: Include when the role may require relocation or travel

3. Non-Compete Clause: Include for senior positions or roles with access to sensitive information

4. Confidentiality Statement: Include for roles dealing with confidential information or intellectual property

5. Special Allowances: Include when offering specific role-based allowances like housing or transportation

6. Training Commitments: Include when the role requires specific training or certification requirements

7. Remote Work Provisions: Include when offering flexible or remote working arrangements

What schedules should be included in a Internal Offer Letter?

1. Job Description: Detailed outline of roles, responsibilities, and key performance indicators

2. Benefits Summary: Detailed breakdown of all benefits and their monetary value

3. Company Policies Reference: List of key company policies that the employee must adhere to

4. Required Documents Checklist: List of documents needed for employment processing

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Indonesia

Publisher

Genie AI

Document Type

Offer Letter

Cost

Free to use

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