--- title: "Recruitment Agency in Jakarta, Indonesia: Employer's Guide" canonical_url: "https://www.jessonglobal.com/insights/recruitment-agency-jakarta" last_updated: "2026-11-02T02:58:51.007Z" meta: description: "How to choose a recruitment agency in Jakarta: agency types, licence checks under Permenaker 18/2024, wage floors, and a cost table at three salaries." "og:description": "How to choose a recruitment agency in Jakarta: agency types, licence checks under Permenaker 18/2024, wage floors, and a cost table at three salaries." "og:title": "Recruitment Agency in Jakarta, Indonesia: Employer's Guide" "twitter:description": "How to choose a recruitment agency in Jakarta: agency types, licence checks under Permenaker 18/2024, wage floors, and a cost table at three salaries." "twitter:title": "Recruitment Agency in Jakarta, Indonesia: Employer's Guide" --- Jesson Global — Home **For Employers**[**Executive Search & Headhunting**](https://www.jessonglobal.com/insights/topics/executive-search)Oct 31, 2026·12 min read # Recruitment Agency in Jakarta, Indonesia: Employer's Guide How to choose a recruitment agency in Jakarta: agency types, licence checks under Permenaker 18/2024, wage floors, and a cost table at three salaries. ![Jessica Baware](https://www.jessonglobal.com/_ipx/fit_cover&pos_top&q_76&s_44x44/cms-media/jessica-baware.jpeg) By [**Jessica Baware**](https://www.jessonglobal.com/about#team) Co-Founder & CEO, Jesson Global To choose a recruitment agency in Jakarta, Indonesia, first match the agency type to the role, then check its business licence, and only then compare fees. Indonesia's domestic placement rule, Permenaker 18/2024, requires a written agreement that states the service fee and a placement guarantee. Jakarta's 2026 minimum wage is Rp5,729,876 a month, and the hiring company normally pays the agency. ## What types of recruitment agency operate in Jakarta? You will meet three types in practice: job portals, placement agencies and executive search firms. The first two are legal categories in [~~Permenaker No. 18 of 2024 on domestic placement~~](https://jdih.kemnaker.go.id/asset/data_puu/2024pmnaker018.pdf), in force since 30 December 2024, while "executive search" is a market term. | **Type** | **What the rule says** | **Main requirements** | **Charging job seekers** | | --- | --- | --- | --- | | PPTKS, a private placement agency (Pasal 1 point 9) | A legal entity with a business licence to run placement services | Business licence, a placement officer (Petugas Antar Kerja), SPP AKAD (Pasal 10) | Barred, except for certain positions set by law (Pasal 11) | | Job Portal (Pasal 1 point 11) | A legal entity licensed to run placement services online | Business licence and a placement officer (Pasal 10) | Barred (Pasal 13) | Executive search firms are not a separate legal category, so ask each firm which licence covers its Indonesian work. In plain terms, the label on the website tells you little, and the licence and the contract tell you what you are buying. The commercial models cut across these categories. The Association of Executive Search and Leadership Consultants ([~~AESC~~](https://www.aesc.org/insights/blog/retained-executive-search-vs-contingency-whats-difference)) describes contingent agencies as being paid after a candidate is hired, while retained firms charge a fee at the start and work exclusively. An agency may offer more than one model, so ask which one applies to your role. ## Which type of agency fits which role? Choose by seniority, by how many candidates are actively looking and by how confidential the search is. AESC notes that contingent recruiters typically fill entry- to mid-level positions, and that retained firms focus on senior executives and board directors. The framework below is our own reading of that split, so treat it as a starting point. | **Your situation** | **Start with** | **Why** | | --- | --- | --- | | Many junior roles and plenty of applicants | Job portal | You screen the applicants yourself at a predictable cost | | A mid-level specialist role with a known talent pool | Contingency agency | The agency screens first, and you pay on a hire | | A hard-to-fill senior role | Retained search | The firm approaches people who are not applying | | A confidential replacement | Retained search | The vacancy cannot be advertised openly | | A new market entry team | Retained search or a regional firm | You have no local network to draw on yet | A common mistake is using one agency for everything. Put simply, a firm built to fill many roles quickly works differently from a firm that takes on a few searches a year, so a single contract for all your hiring will usually fit some roles badly. For senior roles, our guide on [~~how to choose an executive search firm in Indonesia~~](https://www.jessonglobal.com/insights/executive-search-firm-indonesia) goes deeper on the retained model and the questions to ask. If you are hiring across all levels, the Bahasa guide to [~~jasa rekrutmen karyawan untuk perusahaan~~](https://www.jessonglobal.com/insights/jasa-rekrutmen-karyawan-perusahaan) covers the general agency route. ## What do Jakarta's wage figures mean for your brief? They set a legal floor and a rough reference, but they do not tell you what a specialist or manager earns. Jakarta has the highest average employee wage of any province, so an offer benchmarked on national numbers will probably look low to Jakarta candidates. The table collects the published figures. | **Measure** | **Amount per month** | **Source** | | --- | --- | --- | | Jakarta provincial minimum wage, 2026 | Rp5,729,876 | [~~Hukumonline~~](https://www.hukumonline.com/berita/a/ump-dan-umsp%E2%80%93dki-2026-lt697324d20263d/), Decree 1142/2025 | | Jakarta sector minimum, software publishing and internet providers | Rp5,754,720 | Hukumonline, Decree 33/2026 | | Jakarta sector minimum, commercial banks with assets above Rp1 trillion | Rp5,872,985 | Hukumonline, Decree 33/2026 | | Average employee wage, Jakarta, February 2026 | Rp5.23 million | [~~Databoks citing BPS~~](https://databoks.katadata.co.id/ketenagakerjaan/statistik/69fa926f9ce1f/rata-rata-upah-buruh-38-provinsi-ri-awal-2026-jakarta-tertinggi) | | Average employee wage, Jakarta, May 2026 | Rp5.74 million | [~~GoodStats citing BPS~~](https://goodstats.id/article/10-provinsi-dengan-rata-rata-upah-buruh-tertinggi-per-mei-2026-Axzrd) | | Average employee wage, national, May 2026 | Rp3.39 million | [~~CNBC Indonesia citing BPS~~](https://www.cnbcindonesia.com/news/20260805141123-4-756778/bps-catat-upah-buruh-naik-tertinggi-di-5-sektor-usaha-ini) | Two cautions apply when you read these numbers. The averages cover all employees at every level, so they say little about senior pay. The sector minimums have detailed conditions by business code, so check your own code in the decree. BPS sector data adds some context, because national average pay varies widely by industry. CNBC Indonesia reports Rp5.51 million in financial and insurance activities, Rp5.24 million in information and communication, and Rp3.42 million in manufacturing for May 2026. In practice, use these figures as a sanity check, and ask the agency for current evidence on the specific role, such as recent offers it has seen. Pay also has to appear in the contract with the agency, because Pasal 54 of Permenaker 18/2024 lists the wage amount among the required items. A clear pay range in your brief therefore saves time for both sides. ## What does a recruitment agency in Jakarta cost? There is no official tariff, so the fee is whatever your contract says, and it is usually a percentage of first-year pay. The best-documented anchor is Korn Ferry's filing with the US regulator, which says its search fee is [~~"generally one-third of the estimated first-year cash compensation"~~](https://www.sec.gov/Archives/edgar/data/0000056679/000005667926000021/kfy-20260430.htm) of the placed candidate. That is one global firm's practice and not a Jakarta market rate. Tax then changes your cash flow. The Directorate General of Taxes (DJP) explains that the [~~VAT charged stays at 11%~~](https://www.pajak.go.id/en/node/113886) on non-luxury services because of the 11/12 multiplier, and that [~~PPh 23 on services is 2%~~](https://www.pajak.go.id/id/pph-pasal-23) of the gross value, or 100% higher if the recipient has no tax number (NPWP). Whether a recruitment fee is on the PPh 23 service list is a classification question for your tax adviser. The table is an illustration only. It assumes a 20% fee on 12 months of base salary, an agency that charges VAT, and that PPh 23 applies. The 20% is a round number we chose for the arithmetic, and it is not a quote. | **Monthly base salary** | **Fee** | **VAT at 11%** | **Invoice total** | **Paid to agency after PPh 23** | | --- | --- | --- | --- | --- | | IDR 15 million | 36,000,000 | 3,960,000 | 39,960,000 | 39,240,000 | | IDR 30 million | 72,000,000 | 7,920,000 | 79,920,000 | 78,480,000 | | IDR 60 million | 144,000,000 | 15,840,000 | 159,840,000 | 156,960,000 | The gap between the last two columns is not a saving. You pay that amount to the tax office instead of to the agency, so your total outflow stays at the invoice total. Ask what the percentage is applied to, because base salary alone gives a smaller fee than base plus fixed allowances. Our [~~guide to biaya jasa headhunter~~](https://www.jessonglobal.com/insights/biaya-jasa-headhunter) has more on fee mechanics in Bahasa, for your finance team. ## How do you check that an agency is properly licensed? Ask for the licence documents and confirm that the legal entity on them is the one signing your contract. Pasal 10 of Permenaker 18/2024 says the business licence consists of an NIB (business identification number) and/or a Sertifikat Standar, so both are reasonable to request. | **Question to ask** | **Why it matters** | **Basis** | | --- | --- | --- | | Are you a legal entity with a business licence? | The definition of a private placement agency requires both | Pasal 1 point 9 | | Can I see your NIB and/or Sertifikat Standar? | These make up the licence | Pasal 10(4) | | Do you employ a placement officer? | The rule requires one for agencies and job portals | Pasal 10(2), (3) | | Do you charge candidates anything? | Agencies may not, except for certain positions | Pasal 11 | | Will the agreement be in writing? | The agreement is defined as a written contract | Pasal 54(1) | A firm that hesitates over these questions is telling you something useful. In simple terms, you are checking that the company can legally do this work before you assess whether it does the work well. ## What changes if you hire from outside Jakarta? An agency recruiting across provinces needs extra approvals, so raise this early if your candidates may come from other regions. Pasal 53 says an agency that recruits job seekers for an employer must have a placement agreement, report the vacancy, and hold an SPP AKAD and an SPR. The SPP AKAD is the approval letter for placement between provinces, and the SPR is a permit from the provincial manpower office to recruit for inter-regional needs. This matters when your best candidates may live in another province. Put simply, ask the agency whether it holds these documents for the regions you care about, and do not assume that a Jakarta licence settles the question. ## Who reports the vacancy to the government? You do, unless the agency reports it for you, so agree on who handles it. Pasal 29(3) says vacancy information must be reported by the employer to the Minister through SIAPkerja, and Pasal 29(4) requires the employer to hold a SIAPkerja account. Under Pasal 55(1), the agency reports the vacancy if the employer has not already done so. The rule also sets the minimum content, which includes the employer's identity, the job title and number of hires, how long the vacancy is valid, and job information such as education, experience, pay and work location. In practice, a well-written brief already contains almost all of this, so one document can serve both purposes. ## What should the agency contract say? The contract must cover seven minimum items, and you should add several more of your own. Pasal 54(2) lists the identity of the parties, their rights and obligations, the scope of work, the number of workers needed, the wage, the service fee and the placement guarantee. The regulation requires a guarantee but does not set its length, so that term is yours to negotiate. Add these points before you sign: - ****Fee basis:**** what counts as compensation, and whether the fee adjusts with the final offer. - ****Payment schedule:**** what is due at each stage, and what you owe if you cancel. - ****Replacement terms:**** the period, what triggers it, and whether it means a free search or a partial refund. - ****Candidate ownership:**** how long a candidate the agency introduced stays covered by the fee. - ****Exclusivity:**** whether you can use other agencies or your own team on the same role. - ****Confidentiality:**** who may know your company's name, and at what stage. Candidate ownership can cause disputes, because your team may find the same person independently. In simple terms, write down the period and the rule now, so that nobody has to argue about it after a hire. ## Does it matter if the agency is outside Indonesia? Yes, because the withholding tax on the fee changes substantially. DJP states that [~~PPh 26 is 20%~~](https://www.pajak.go.id/id/pph-pasal-26) when tax-treaty conditions are not met, and the treaty route requires the foreign party's DGT form or certificate of domicile. On the IDR 72 million fee in the table above, 20% is IDR 14.4 million, against IDR 1.44 million under PPh 23. A regional firm may invoice from another country, so ask which entity will bill you. In practice, settle who bears that tax in the contract, or a foreign firm may ask you to gross up the fee. ## How do you brief an agency so the search works? Give the agency a written brief that states the outcome, the pay range and the deal-breakers, because a vague brief produces a vague shortlist. One page is enough, and it should answer these questions: 1. What must this person achieve in the first year? 2. Who do they report to, and who reports to them? 3. What is the pay range, including allowances and bonus? 4. Which experience is essential, and which is only preferred? 5. Which companies are off limits, for example your clients or group companies? 6. Who decides, how many interview rounds are there, and how quickly can you respond? 7. Is the search confidential, and from whom? The last two questions are often skipped, yet they shape the result. A slow decision process can lose a good candidate, so agree on interview dates before the shortlist arrives. ## How long does hiring through an agency take? It varies by role and firm, so compare the stages and ask whether the candidate's notice period is included. As one published example, Jesson Global states a process of four to eight weeks from kickoff to placement: a brief in week one, market mapping in weeks one to two, screening in weeks two to four, a shortlist of three to five vetted profiles in weeks four to six, and placement from weeks six to eight, with support for both sides for the first 90 days. Our article on [~~how long executive search takes in Indonesia~~](https://www.jessonglobal.com/insights/how-long-does-executive-search-take-in-indonesia-a-2026-complete-guide) looks at this in more detail. Searches in Indonesia run through PT. Jesson Global Indonesia, and this process is designed for Director-level roles and above, cross-border placements and confidential replacements. For those roles, you can see how a search is scoped on our [~~executive search page~~](https://www.jessonglobal.com/executive-search). ## FAQ ### **How much does a recruitment agency in Jakarta charge?** There is no official tariff, so the fee is set in your contract and is usually a percentage of first-year pay. As one documented reference, Korn Ferry reports that its search fees are generally one-third of first-year cash compensation. Ask each agency for its rate, the fee basis and the payment schedule in writing. ### **How do I check whether a Jakarta recruitment agency is licensed?** Ask for its NIB and/or Sertifikat Standar, which Permenaker 18/2024 names as the business licence, and confirm that the legal entity on the documents is the one signing your contract. You can also ask whether it employs a placement officer, because Pasal 10 of the regulation requires one. ### **Who pays the recruitment agency, the employer or the candidate?** The employer pays. Permenaker 18/2024 bars private placement agencies from charging job seekers placement fees, except for certain positions set by law, and it bars job portals from charging job seekers at all. The service fee must appear in the written agreement between the agency and the employer. ### **Do I still have to report the vacancy if I use an agency?** The duty sits with the employer. Pasal 29 of Permenaker 18/2024 says vacancies must be reported through SIAPkerja, and Pasal 55 says the agency reports the vacancy if the employer has not done so. Agree in the contract who will handle it, so that the report does not get missed. ### **Is the Jakarta minimum wage relevant to senior hires?** Only as a legal floor, because it says nothing about what senior people earn. Jakarta's 2026 provincial minimum wage is Rp5,729,876 a month, and sector minimums can be higher. For a realistic benchmark on a specialist or manager role, ask the agency for current evidence on that specific role and industry. 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