PPh 21 (employee income tax withholding)
PPh 21 is the Indonesian income tax withheld directly from an employee's salary each month by their employer and remitted to the tax office on their behalf.
If you are a formal employee of an Indonesian entity — including one hired through an Employer of Record — PPh 21 is deducted before you receive your net salary; this is the gap between the gross figure in your contract and your take-home pay. Independent contractors and freelancers paid directly by a foreign client generally do not have PPh 21 withheld and must report and pay their own tax instead.
This is general information only, not tax or legal advice — the exact withholding calculation depends on your income, allowances, and status, so check your payslip and confirm details with a licensed tax professional if something looks off.