New Hire Letter Template for Indonesia

A New Hire Letter is a crucial document in Indonesian employment relations, used when extending a formal employment offer to a prospective employee. It serves as both an offer letter and a preliminary employment agreement, requiring careful attention to compliance with Indonesian labor laws, particularly the Manpower Law (Law No. 13 of 2003) and the Job Creation Law. The document should be issued before employment commences and must include mandatory employment terms such as position, compensation, working hours, and benefits as required by Indonesian regulations. While it can be drafted in dual languages, Indonesian law requires that it must either be in Bahasa Indonesia or, if bilingual, have Bahasa Indonesia as the prevailing language. The document forms the foundation of the employment relationship and may be referenced in future employment-related matters.

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

2. Candidate's Name and Address: Full name and current address of the prospective employee

3. Offer Statement: Clear statement offering the position, including job title and department

4. Start Date: Proposed employment commencement date

5. Position and Duties: Brief overview of role, reporting relationship, and key responsibilities

6. Employment Status: Whether permanent or fixed-term (PKWTT or PKWT) as per Indonesian law

7. Work Location: Primary workplace location and any flexibility arrangements

8. Compensation: Base salary, allowances, and payment schedule in accordance with Indonesian regulations

9. Working Hours: Standard working hours, days, and any shift arrangements

10. Benefits: Overview of statutory and company benefits including BPJS registration

11. Leave Entitlements: Annual leave, religious holiday leave, and other statutory leave rights

12. Acceptance Terms: How to accept the offer and by what deadline

13. Closing: Signature block for authorized company representative