Types of Recruitment Firms

Retained executive search

Search firms recruit board-level and C-suite staff through investigative research and networking rather than advertising or a candidate database. The client pays a retainer and commits to the mandate regardless of outcome. Fees run roughly 25 to 35 per cent of the placed candidate's first-year total compensation, billed in instalments across engagement, shortlist and placement. The candidate never pays; the hiring company does. A few firms with long-established Jakarta offices:

Contingency and professional search

Contingency firms cover mid-to-senior professional and management roles and are paid only on a successful placement, typically 18 to 25 per cent of first-year salary, scaling with seniority. Because there is no obligation to deliver, they tend to prioritise the easier vacancies. Established players in Jakarta:

Commercial recruitment

Commercial agencies fill entry-level and junior roles from advertising and internal databases, again on a contingency basis, at around 15 to 22 per cent of first-year salary. Ignore any old rupiah salary anchors for these roles: Jakarta's 2026 provincial minimum wage alone sits near Rp 5.7 million a month, so the figures in earlier versions of this page are long dead.

Outsourcing (alih daya)

Outsourcing is not simply bulk contract staffing any more. After the 2020 Omnibus Law briefly opened it to almost any work, Manpower Minister Regulation No. 7 of 2026 (issued 30 April 2026) restricted it again to a defined list of supporting activities: cleaning, catering, security, drivers and transport, general operational support, and auxiliary work in mining, oil, gas and electricity. The provider must be a licensed legal entity, each worker must hold a written PKWT or PKWTT contract, and the vendor is responsible for wages, BPJS social security, leave, overtime and severance. Existing arrangements have until 2028 to comply, and at the time of writing the regulation is itself under further revision. Anyone using outsourced labour should take current legal advice rather than rely on rules of thumb.

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