Listen to Workers’ Aspirations, Government to Immediately Eliminate Outsourcing
By: Wiji Adrianto
The government is preparing to eliminate the outsourcing system. This commitment was conveyed directly by President Prabowo Subianto in commemoration of Labor Day on May 1, 2025.
The government plans to immediately eliminate the outsourcing system. This step is a breath of fresh air for the Indonesian workforce, especially for the millions of workers who have been trapped in an outsourcing system that does not provide job security and decent welfare.
President Prabowo firmly instructed the formation of the National Labor Welfare Council, which will be the main driving force in designing a mechanism for eliminating the outsourcing system in a gradual and measurable manner. This council is planned to be filled by leaders of labor unions from various sectors, ensuring that workers’ voices are the basis for policy making.
For more than two decades, the outsourcing system has been used to provide flexibility to the business world. However, the reality on the ground is far from initial expectations. Many workers who have served for dozens of years remain outsourced, paid the equivalent of the minimum wage, without a career ladder, and without adequate social security. This phenomenon is clear evidence that the outsourcing policy has deviated from the principles of social justice guaranteed by the constitution.
President Prabowo emphasized that the policy to eliminate outsourcing is not merely a political promise, but a real form of the state’s presence in guaranteeing the basic rights of workers. He emphasized the importance of careful planning so that the transition to a fairer work system does not shake the business world. In his statement, the President said that this decision must be accompanied by a careful policy so that the investment climate is maintained but does not sacrifice workers’ rights.
Minister of Manpower Yassierli emphasized that the government is preparing an in-depth study as a basis for the policy to eliminate the outsourcing system. In his statement after releasing interns to Japan in Semarang, Yassierli explained that the President’s direction was very clear, namely to eliminate outsourcing while still paying attention to the impact on investment. According to him, the problem of outsourcing so far has not only concerned work flexibility, but also contains serious problems such as unclear wages, work status, and loss of access to social security. He added that the National Labor Welfare Council will be at the forefront in formulating concrete steps to address this problem comprehensively.
A similar view was expressed by the President of the Indonesian Trade Union Association (Aspirasi), Mirah Sumirat. She assessed that the current outsourcing system has deviated far from the spirit of Law Number 13 of 2003 concerning Manpower. According to Mirah, the law initially only allowed outsourcing for five types of work, namely security, mining, cleaning, drivers, and catering. However, after the emergence of the Job Creation Law (Omnibus Law) which is now Law Number 6 of 2023, the regulation changed drastically. The term outsourcing was replaced with outsourcing and the scope of the types of work that can be outsourced has become limitless.
Mirah added that outsourcing practices in the field are increasingly complex with the emergence of layered structures in a number of companies. The main work is transferred to subsidiaries, then to subsidiary companies, and so on, which ultimately worsens the conditions of workers. Wages are cut, social security is not met, and worker status becomes vulnerable. Therefore, according to her, the policy to eliminate outsourcing must be accompanied by a revision of regulations and strengthening of law enforcement so that protection of workers’ rights is truly implemented.
The government, through this step, also shows its commitment to the Sustainable Development Goals (SDGs), especially in creating decent work and inclusive economic growth. By eliminating the outsourcing system that has created inequality, Indonesia is moving towards a fairer and more humane direction in the world of work.
This policy does not immediately close the opportunity for work flexibility. On the contrary, it is a momentum to build a more transparent and accountable employment system. Minister Yassierli stated that flexibility can still be maintained through a fair work system based on direct contracts between companies and workers, without intermediaries who often harm workers. This will increase work productivity because workers will feel more appreciated and protected.
