Starting January 2027, Companies are Required to Report PSPK 1 and 2!
IAI Officially Approves Sustainability Disclosure Standards On July 1, 2025, the Sustainability Standards Board of the Institute of Indonesia Chartered Accountants (DSK IAI) officially approved the Sustainability Disclosure Standards (SPK), which consist of PSPK 1 and PSPK 2. This standard will become effective starting January 1, 2027, and adopts the IFRS Sustainability Disclosure Standards (IFRS […]
Indonesia Revises 0.5% MSME Income Tax Scheme: What Does It Mean for PTs and CVs?
Government Updates MSME Tax Regulations The Indonesian Government has officially issued Government Regulation (PP) No. 20 of 2026, introducing significant changes to the Final Income Tax (PPh Final) scheme for Micro, Small, and Medium Enterprises (MSMEs). One of the most notable changes is that Limited Liability Companies (PT) and Limited Partnerships (CV) will no longer […]
Employee of Record (EOR) as a Key Strategy Amid Global Geopolitical Uncertainty
Today’s global business environment is no longer stable, predictable, or confined by national borders. Geopolitical uncertainty, shifting trade dynamics, varying regulatory frameworks, and ongoing economic volatility have fundamentally reshaped how companies grow and compete. Indonesia continues to be a key destination for global investors, supported by large productive workforce. However, for foreign companies, establishing a […]
Child Abuse Case at a Daycare Becomes a Wake-Up Call for the Importance of Proper Recruitment and HR Management Systems
A recent alleged child abuse case at a daycare center in one of Indonesia’s major cities has once again drawn public attention and raised serious concerns among parents. Beyond the individual incident itself, the case serves as an important reminder for daycare operators about the critical need for professional and standardized human resource (HR) quality […]
When Performance Becomes Subjective: The Hidden Cost of Weak KPI Systems
Performance evaluation should help organizations measure contribution objectively, align employees with business goals, and strengthen accountability across all levels. However, in many organizations, performance discussions still rely heavily on subjective judgment rather than measurable indicators. Employees may feel that evaluations are inconsistent, managers struggle to justify appraisal results, and organizations face difficulties connecting individual performance […]
It’s Not Just a Pay Raise: Why ‘People Engagement’ Is the Antidote to the Poison of Quiet Quitting
Understanding the Phenomenon of Quiet Quitting in the Modern Era In today’s workplace, many business leaders think they can buy employee loyalty just by giving a pay raise. But the rise of “quiet quitting” where employees do only the bare minimum and stop caring about the company’s goals, shows that money is not everything. Today’s […]
Optimizing BPJS Contributions and Payroll Tax Calculations
Managing payroll in Indonesian companies is becoming increasingly complex, as there is a need to balance BPJS contributions (Health and Employment) with PPh 21 tax obligations. Therefore, companies need to calculate PPh 21 by including BPJS contributions. A clear understanding of how these elements interact is crucial for both compliance and cost optimization. Understanding BPJS […]
Performance Management Best Practices: Aligning Individual Accountability with Business Goals
In today’s competitive and fast-changing business environment, organizations are increasingly required to ensure that employee performance directly contributes to strategic objectives. Research on advanced performance management systems highlights that effective performance management is no longer limited to monitoring results, because it must serve as a strategic mechanism that aligns individual accountability with organizational goals. Many […]
Aligning Pay With Market Reality: Why Salary Benchmarking Matters
Salary Benchmarking Strategy for Competitiveness Amid increasing business competition and greater transparency of information, companies are required to retain their best talent. Today, both candidates and employees evaluate employers not only based on workplace culture and career opportunities, but also on whether compensation is fair and competitive. For HR Managers and decision-makers, salary benchmarking has […]
Strengthening the Foundation of Corporate Sustainability Reporting with PSPK 1 & PSPK 2
“Shaping more Sustainable and Accountable Business Reporting” Business is no longer defined solely by profits. Regulatory bodies, investors, and the public demand transparency, accountability, and responsible practices. In Indonesia, the issuance of PSPK 1 and PSPK 2 marks a significant step in aligning corporate sustainability reporting with global standards while ensuring compliance with national regulations. […]
