Jakarta – The government has shown a strong commitment to protecting workers’ rights through the discourse on eliminating the outsourcing system. This idea, which was conveyed directly by President Prabowo Subianto, is considered a progressive step to ensure job security and improve the welfare of Indonesian workers.
President Prabowo said that the government has formed the National Workers’ Welfare Council to study in detail the transition from an outsourcing system to a more humane employment system. This step is not only a response to the concerns of millions of outsourcing workers in Indonesia, but also an affirmation that the state is there to protect its people.
Minister of Manpower Yassierli said that his ministry is currently drafting a Ministerial Regulation on outsourcing, in accordance with the President’s direction.
“The President’s policy conveyed at the May Day 2025 celebration regarding outsourcing will certainly be the basic policy in the preparation of the Ministerial Regulation on outsourcing which is currently being prepared,” Yassierli emphasized.
This policy has been appreciated by academics and policy observers. Executive Director of the Institute for Development of Economics and Finance (INDEF), Esther Sri Astuti, stated that the elimination of outsourcing will force companies to start recruiting outsourced workers as permanent employees.
“The elimination of outsourcing could have an impact on companies willingly or unwillingly appointing outsourced employees as permanent employees so that they get certainty of becoming employees and there is an increase in welfare,” said Esther.
According to him, appointing workers as permanent employees means opening access to basic rights such as minimum wages according to the UMR, health insurance, and work accident protection.
Esther emphasized that although there will be challenges at the beginning such as the company’s financial readiness and increasing production costs, job security remains a long-term investment for industrial stability and social calm.
“This is considered to increase the company’s production costs and have an impact on the selling price of its products being more expensive,” he explained. However, he said, the social and moral effects were far more significant than the short-term economic burden.
This step to eliminate outsourcing also reflects a paradigm shift in the national employment system from a flexible and cheap model to a fair and secure model. Not only for the welfare of workers, but also to create a healthy, loyal and productive work environment.
If successfully implemented comprehensively, this policy will not only eliminate outsourcing practices that have so far restricted workers’ rights, but will also mark a new chapter in Indonesia’s labor history: an era of certainty, welfare, and respect for workers’ dignity.
