Employer of Record (EOR)
An Employer of Record (EOR) is a third-party company that legally employs you on behalf of a foreign business, handling local payroll and tax so the business needs no local entity.
When a foreign company wants to hire you as a proper local employee — with local tax withholding and statutory benefits — but has no legal entity in Indonesia, it can use an EOR. The EOR is your official employer on paper, issues your payslip, and handles compliance, while you do your actual work for the foreign company day to day.
An EOR arrangement differs from being an independent contractor: with an EOR you are a genuine employee with local protections and withheld tax, whereas a contractor invoices gross and self-manages tax. Ask which model an offer uses before comparing its take-home pay to another offer.