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A Project-Based Contract (Perjanjian Kerja Waktu Tertentu) is a fixed-term employment agreement in Indonesia that ties a worker's employment to a specific project or task. Under Indonesian Labor Law No. 13/2003, these contracts let companies hire staff for clearly defined projects with set start and end dates.

The contract must spell out the project's scope, timeline, and completion criteria. It's commonly used in construction, event management, and seasonal work. While the maximum duration is typically 3 years, the contract automatically ends when the project finishes. Companies need to pay attention to strict rules about extensions and worker rights to ensure compliance with Ministry of Manpower regulations.

Project-Based Contracts work best for businesses managing temporary or seasonal initiatives in Indonesia. Construction companies use them to hire workers for specific building projects, event organizers bring in staff for festivals or conferences, and tech firms engage specialists for software development cycles.

These contracts protect both parties when the work has clear start and end points. They're especially valuable for manufacturing runs, research projects, or infrastructure developments that need specialized skills temporarily. Indonesian law requires using these contracts only for genuinely time-limited work - not for ongoing operational needs. This helps avoid legal complications with worker classifications and benefits.

• Standard Project Contracts: Used for defined construction or development work, typically lasting 6-24 months with clear deliverables and milestones
• Seasonal Work Agreements: Common in agriculture and tourism, covering recurring but temporary needs like harvest seasons or peak tourist periods
• Event-Based Contracts: Short-term agreements for specific events, exhibitions, or conferences, usually lasting days to weeks
• Technology Project Contracts: Tailored for IT implementations, software development, or system upgrades with specific technical requirements
• Infrastructure Development Contracts: Used for large-scale construction projects with complex phases and multiple specialist teams

• Project Managers: Define project scope, timeline, and deliverables in the contract while overseeing worker performance
• HR Departments: Draft and manage Project-Based Contracts, ensure compliance with Indonesian labor laws, and handle contract extensions
• Contract Workers: Skilled professionals who execute specific project tasks under fixed-term employment terms
• Legal Teams: Review contract terms, ensure Ministry of Manpower compliance, and handle dispute resolution
• Company Directors: Authorize contracts and bear ultimate responsibility for proper worker classification

• Project Details: Document clear start/end dates, specific deliverables, and measurable completion criteria
• Worker Information: Gather employee details, role specifications, and required qualifications per Indonesian labor laws
• Compensation Structure: Define salary, benefits, overtime rates, and any performance-based incentives
• Legal Requirements: Include mandatory provisions from Law No. 13/2003 on fixed-term employment
• Project Milestones: Map out key phases, reporting requirements, and evaluation criteria
• Contract Review: Use our platform to generate a compliant document that includes all essential elements

• Project Scope: Detailed description of work, specific deliverables, and completion criteria
• Duration Terms: Clear start and end dates, with conditions for early termination or extension
• Compensation Details: Salary, benefits, overtime rates, and payment schedule as per Indonesian law
• Work Conditions: Hours, location, reporting structure, and safety requirements
• Legal Compliance: References to Law No. 13/2003 and relevant Ministry of Manpower regulations
• Dispute Resolution: Clear procedures for handling disagreements under Indonesian jurisdiction
• Termination Clauses: Conditions and processes for ending the contract, including severance terms

Project-Based Contracts differ significantly from standard Employment Contracts in Indonesian law. While both govern work relationships, their scope and application serve distinct purposes.

• Duration and Termination: Project-Based Contracts automatically end when the project completes or reaches its deadline, while Employment Contracts continue indefinitely until terminated by either party
• Benefits Structure: Regular employment contracts require full statutory benefits, while Project-Based Contracts may have modified benefit packages aligned with project duration
• Legal Framework: Project-Based Contracts fall under specific provisions of Law No. 13/2003 for fixed-term work, while Employment Contracts follow permanent employment regulations
• Renewal Rules: Project contracts can't be renewed indefinitely and must relate to genuine project-based work, unlike standard employment agreements which can continue long-term