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An Option to Incentivise Key Employees in the Company

Employee Stock Option Plan (ESOP) in Indonesia Business owners will always want to retain their best staff. Therefore, it might be worth considering offering additional incentives like an Employee Stock Option Plan (ESOP) in Indonesia.


Why Consider Employee Stock Option Plan (ESOP) in Indonesia

Good talent is hard to come by these days. When a company does find talent that complements the company, it is worthwhile holding on to that employee. It will save companies a lot of time and effort in the long-run having to source replacements.

Employees need to feel valued and appreciated to feel happy working for a company. They need additional incentives besides the salary package to feel a sense of belonging. That is where ESOPs come into play.

An ESOP is a company’s way of offering selected employees stock options in the company. It gives the employee some shared ownership. In Indonesia, this type of share ownership program is usually called a PKSK. It is a form of reward and a way of retaining loyal and hardworking staff in the company. When used correctly, it can act as an effective retention strategy.


How to Offer ESOPs to Employees in Indonesia

Offering the Employee Stock Option Plan to your staff can be done in the following ways:

  • Stock grants
  • Direct employee stock purchase plans

Employees will be offered the opportunity to purchase these shares for a pre-determined price.


Are ESOPs in Indonesia Common?

An ESOP in Indonesia is up to the company. They are not commonly offered as part of the remuneration package. It is up to the company to decide if they want to offer employees these stock options as part of their reward and retention strategy. An Employee Stock Option Plan is an internal agreement that takes place between the employer and the employee.

If you are looking for ways to retain the top performers in your company, an ESOP is one way to do it. Before an employer can offer employees share options in the company, they need to fulfil certain requirements first.

Employee Stock Option Plan (ESOP) in Indonesia