Magazine article Workforce

Costs Skyrocket to Maintain Expats in Indonesia

Magazine article Workforce

Costs Skyrocket to Maintain Expats in Indonesia

Article excerpt

U.S. companies seeking to return their expatriate executives to Indonesia in the wake of President Suharto's resignation at the end of May are likely to be hit with higher security, insurance and compensation costs, forecasts the International Executive Services Practice of New York City-based KPMG Peat Marwick.

As the world's fourth most populous country, Indonesia has provided significant opportunities for U.S. companiesfirms that traditionally have relied on expatriates to mobilize and maintain operations in Jakarta. The recent unrest has pushed the cost of supporting expatriates in Indonesia to unprecedented heights.

According to a State Department official, U.S. companies evacuated more than half of the estimated 9,000 to 15,000 total U.S. expatriates in the politically troubled Southeast Asian country. According to KPMG, many multinational companies will take every precaution as many of these workers return to their posts in Indonesia in the coming weeks, a move that could substantially increase payroll and associated expenses.

"Sending an expatriate out of an uncertain political or security situation can be expensive," asserts Bill Hibbitt, national director of the KPMG International Executive Services practice. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.