Independent contractor
An independent contractor is a self-employed person providing services to a client under an agreement, rather than being that company's employee — responsible for their own taxes and benefits.
Foreign companies often hire Indonesian talent as independent contractors instead of direct employees, because it avoids the need to register a local entity or run local payroll. As a contractor you typically invoice for your work, are paid gross with no tax withheld by the client, and are responsible for reporting and paying your own Indonesian income tax.
Contractor status also usually means no employer-provided benefits (health insurance, paid leave, severance) unless the contract explicitly adds them — factor that in when comparing a contractor rate to an equivalent salaried offer.