Government to Eliminate Outsourcing for Employment Justice

JAKARTA – The government’s decision to eliminate the outsourcing system is a significant step in ensuring employment justice in Indonesia.

President Prabowo Subianto, in commemoration of Labor Day on May 1, 2025, emphasized his commitment to creating a fairer employment system through the establishment of the National Labor Welfare Council. This council will later act as a strategic advisor in designing employment policies that favor workers.

“This step is not just a political response, but a real effort by the state to guarantee justice and job security for Indonesian workers,” said President Prabowo Subianto.

Outsourcing, which has been going on for more than two decades, is now in the spotlight. Initially, this system was designed to provide flexibility to the business world. However, in practice, many workers are trapped in short-term contracts without job security and minimal welfare guarantees.

“Many workers over the age of 40 remain in outsourcing status with wages equivalent to the UMP and without a clear career path. This clearly shows the inequality that must be addressed immediately,” said Minister of Manpower, Yassierli.

The elimination of outsourcing cannot be done suddenly. Therefore, careful planning and a gradual transition are the keys to its successful implementation.

“This policy must be designed carefully so as not to disrupt the investment climate, but still protect workers’ rights,” added President Prabowo Subianto.

The National Labor Welfare Council will serve as a liaison between workers’ aspirations and the needs of the business world, ensuring that this policy runs effectively without sacrificing the interests of both parties.

It is important to note that the elimination of outsourcing does not mean closing the opportunity for work flexibility.

“This is actually an opportunity to build a fairer and more transparent work system,” said Minister Yassierli.

Through this policy, it is hoped that a balance will be created between the interests of workers and the business world, which in turn supports national economic development.

With this step, the government also strengthens its commitment to the Sustainable Development Goals (SDGs), especially in terms of creating decent jobs and improving workers’ welfare.

“By eliminating outsourcing, Indonesia is committed to ensuring that all workers have equal opportunities to develop and contribute to the nation’s progress,” concluded President Prabowo Subianto.