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The Letter of Intent to Hire is a crucial document in Indonesian employment practices, serving as a bridge between verbal job offers and formal employment agreements. It is typically used following successful job interviews and negotiations, but before the execution of a formal employment contract. This document provides clarity and security for both parties while maintaining necessary flexibility during the pre-employment phase. Under Indonesian law, particularly considering the framework established by Law No. 13 of 2003 on Manpower and the recent Omnibus Law (Law No. 11 of 2020), the Letter of Intent to Hire helps establish clear expectations while avoiding unintended binding obligations. It's particularly valuable when dealing with senior executives, foreign employees, or situations requiring extended pre-employment procedures such as work permit applications or background checks.

1. Date and Letterhead: Company letterhead, date, and reference number if applicable

2. Recipient Details: Full name and address of the prospective employee

3. Subject Line: Clear indication that this is a Letter of Intent to Hire

4. Opening Statement: Formal confirmation of the intent to hire following discussions/interviews

5. Position Details: Specific job title, department, and reporting relationship

6. Basic Employment Terms: Key terms including proposed start date, work location, and employment status (permanent/temporary)

7. Compensation Overview: Basic salary information and any guaranteed benefits

8. Conditional Statement: Clear statement that this is not the final employment agreement and is subject to conditions

9. Next Steps: Process for moving forward, including timeline for formal employment agreement

10. Closing: Signature block for authorized company representative