Document background
The Offer Letter and Appointment Letter is a crucial employment document in the Indonesian business context, serving as both the initial employment offer and the formal appointment documentation. This document is typically used when a company has selected a candidate following the recruitment process and wishes to formalize the employment relationship in compliance with Indonesian Labor Law. It must include mandatory elements required by Law No. 13 of 2003 on Manpower and related regulations, such as employment status (PKWTT or PKWT), compensation details, working hours, and statutory benefits. The document plays a vital role in establishing clear terms of employment while ensuring compliance with local labor regulations, including requirements for BPJS participation and religious holiday allowances (THR). Many companies in Indonesia opt to prepare this document bilingually (Bahasa Indonesia and English) to ensure both local compliance and international business standards.
