A legal employing entity that takes on the employment relationship with a foreign contractor on behalf of an international operator. The operator engages the EOR commercially; the EOR holds the legal employment contract, runs payroll and tax compliance, sponsors the work permit, and assumes regulatory risk for the engagement.
International operators without an Indonesian subsidiary cannot directly employ foreign contractors in-country without taking on material legal exposure. The EOR model is the standard route international operators use to remain compliant while placing senior contract specialists on Indonesian capital projects.