About PT IMCD Indonesia
PT IMCD Indonesia was established in 2012 and is a distributor and solutions provider of chemicals and specialty materials for various industries, including Food & Nutrition, Beauty & Personal Care, Pharmaceutical, Advanced Materials, Lubricant & Energy, Coating & Construction, and others.
As a chemical distributor serving multiple sectors, PT IMCD Indonesia requires a consistent payroll process across all company entities.
Challenges in the payroll management
Before adopting a centralized service, PT IMCD Indonesia faced several challenges::=
- Using 3 different vendors for 3 company entities
Before the informant joined the company in 2023, payroll was managed by three different vendors for three IMCD Indonesia entities, resulting in fragmented processes. - Complex coordination and communication
Since each vendor had a different payroll calculation approach, the HR team had to align separately with each vendor. This made communication and coordination flows complicated. - Non-standardized payroll calculations
Differences in calculation approaches created the potential for discrepancies that could impact journal entries and financial administration processes. - Limited HR manpower
The HR team composition is relatively lean and focused on HRBP and GA functions, leaving no dedicated manpower to manage payroll in detail each month.
Mekari Payroll Service as the solution
Through collaboration with Mekari Payroll Service, PT IMCD Indonesia consolidated payroll management for three entities into one centralized service. The company transitioned from three vendors to a single payroll service provider with one main PIC, making the overall process far simpler and better coordinated.
In addition to handling multiple entities or branches within one company, payroll calculations across each entity became standardized. Communication and coordination were centralized. Payroll is managed by specialists, with adjustable monthly cut-off and payroll disbursement schedules. If there is any data mismatch, payroll specialists can identify and resolve it. Tax calculation and reporting are also handled, including obtaining billing codes, so the finance team only needs to proceed with payment.
Results experienced by PT IMCD Indonesia
After implementing Mekari Payroll Service, PT IMCD Indonesia experienced the following outcomes:
- More efficient vendor consolidation
From three vendors to a single payroll service provider with one main PIC, simplifying coordination. - Standardized payroll calculations across 3 entities
Reducing the risk of calculation discrepancies that affect journal entries and financial administration. - Faster salary disbursement process
With payroll handled by specialists, employee salary payments are processed more quickly. - Operational cost efficiency
One service can handle multi-entity or branch needs, eliminating the need for different vendors. - Real-time payroll data access for budgeting needs
Historical payroll data, including salaries and PPh from January to July (7 months), is readily available and well compiled. - Faster forecasting with minimal manual processes
Seven months of payroll data can be directly used for forecasting, reducing reliance on manual calculations by the accounting team and accelerating the annual budgeting process.
“I used to manage three payroll vendors with different calculation methods. After switching to Mekari Payroll Service, the results became consistent and more standardized, and I had one person I could contact.”
PT IMCD’s perspective on Mekari Payroll Service
For PT IMCD Indonesia, Mekari Payroll Service effectively addresses the need for standardized multi-entity payroll management within a single system. Compared to competitors that only calculate salaries with varying approaches, Mekari Payroll Service delivers consistent calculations and centralized coordination with one dedicated PIC.
One of the most significant impacts is felt during annual budgeting every August. Historical payroll data from January to July can be easily accessed and compiled. Previously, this process was handled manually by the finance manager and took considerable time because the accounting team had other responsibilities. Now, forecasting can be completed more quickly, allowing the team to focus on analysis rather than data processing.
