• Recruitment maybe done through an internal source via HR Department or external source via recruitment agent (outsourcing ).

• Recruiting bulk of Manpower from outside area of work location, or from other provinces, by law require a special arrangement (AKAD Program. A company should provide transportation from the place of recruitment and return back after completion of the contract, and housing / boarding house and its (limited) facilities.

• Orientation and induction program is very important not only to brief the company policies/regulation, and work procedures to the new employees, but also to foster good attitude and adjust their mindset.

• Explanation and Signing of employment agreement is mandatory to avoid  misunderstanding and misinterpretation

LABOR SUPPLY TRENDS

• A large number of under utilized labor and unskilled resource

• Extensive training is required to bring the workers up to required standards

• Unemployed / underemployed : 40 % of the total labor force Foreign companies through its expatriate employees are required to train the local employees.

• Middle management, qualified hi-tech engineers are scarce, in great demand, and expect high compensation

• Expatriates may only be employed on limited positions and time, and should obtain work permits

• Human Resource position should be filled by Indonesian