Economist Says Elimination of Outsourcing Provides Certainty for Employees

By: Adnan Ramdani )*
The elimination of the outsourcing labor system in the world of employment in Indonesia has become a hot topic of discussion lately, especially after various groups, including economists, have voiced their opinions. Most economists argue that the elimination of outsourcing will provide greater job certainty for employees, while improving the quality of working relationships between companies and workers. This opinion certainly has a strong reason, considering that outsourcing has often been considered to cause uncertainty for workers involved in it.
Executive Director of the Institute for Development of Economics and Finance (Indef), Esther Sri Astuti said, the elimination of the outsourcing system proposed by President Prabowo Subianto can provide certainty for employees. With the elimination of the system, companies are encouraged to appoint outsourcing as permanent employees. Prabowo’s statement on outsourcing is proof that the government understands the concerns of workers and laborers in Indonesia.
Then one of the main advantages that workers will get after the elimination of outsourcing is the guarantee of job stability. In the outsourcing system , workers often do not have long-term contracts with the companies that employ them. They often work on temporary contracts that can end at any time, depending on the needs of the company.
With the elimination of this system, workers will get a clearer employment status, which means they will have an easier time getting their rights such as health insurance, pensions, and leave rights. In addition, more guaranteed job stability can provide a sense of security for workers, which in turn will increase their motivation and performance.
In addition, the elimination of outsourcing also has the potential to create equality between permanent workers and contract workers. Previously, outsourcing workers were often faced with different treatment from permanent workers even though they did the same job. The difference was not only in terms of salary, but also in access to facilities and other benefits.
In an outsourcing system , workers tend to receive lower wages and fewer benefits compared to their permanent employees. With the elimination of outsourcing , companies will be more forced to balance the rights and obligations between permanent and non-permanent workers, which will ultimately create a fairer work environment.
Economists also see that the elimination of outsourcing can contribute to increased productivity of companies. This is because workers who have the security of permanent employment tend to have a greater sense of responsibility and attachment to the company where they work. Workers who feel safe and appreciated by the company tend to be more motivated to work hard and improve their performance.
On the other hand, outsourced workers , who do not feel they have a long-term bond with the company, may be less motivated to contribute to their full potential. With job security, companies can also reduce high levels of employee turnover, which is often a problem in sectors that rely on outsourced workers .
Meanwhile, Development Economics Observer from Andalas University, Syafruddin Karimi, said the elimination of outsourcing will provide workers with job certainty, access to social security, and clearer career development opportunities. Meanwhile, the industry will benefit from a more stable and trained workforce.
However, although the elimination of outsourcing brings many benefits, the transition process to a more stable system will certainly not be easy. Some companies may face challenges in adapting to this change, especially those who have long relied on the outsourcing model to reduce operational costs. Therefore, wise policies are needed from the government to help companies adjust to these changes.
This policy can be in the form of incentives or assistance for companies that need to make structural adjustments in order to maintain the continuity of their business while ensuring that worker welfare is maintained. This support is important so that the elimination of outsourcing does not increase the economic burden on companies, but instead encourages the creation of a healthier and more sustainable work climate. Not only that, the elimination of outsourcing also has the potential to improve relations between workers and management.
In many cases, the less harmonious relationship between workers and companies is caused by unclear employment status and unfairness in the distribution of rights and obligations. Outsourcing workers often feel isolated and treated as second class, which ultimately affects their sense of trust and loyalty to the company. With the elimination of the outsourcing system , a more open and respectful relationship can be established, where workers feel recognized and appreciated for their contributions.
The elimination of outsourcing is an important step in creating a better employment ecosystem in Indonesia. This step not only provides certainty and protection for workers, but can also increase company productivity and create more harmonious working relationships. Although there are challenges in its implementation, with the support of the right policies and commitment from all parties, the elimination of outsourcing can be an important milestone in improving Indonesia’s employment sector to be fairer and more sustainable.
)* The author is an economic observer