Jakarta – President Prabowo Subianto has expressed his determination to abolish the outsourcing system in order to realize justice and better protection for workers.
He said that concrete steps would soon be taken by forming the National Workers’ Welfare Council, a presidential advisory body specifically dealing with employment policies.
“As a gift to the workers today, I will immediately form a National Workers’ Welfare Council,” the President emphasized while commemorating Labor Day.
The council will design a careful transition mechanism towards the elimination of outsourcing.
According to the President, this change must be carried out gradually by considering the conditions of the business world in order to maintain a conducive investment climate.
“We want to eliminate outsourcing, but we also have to be realistic. If there is no investment, no factories, then workers cannot work,” he explained.
In addition, President Prabowo announced the formation of the Termination of Employment Task Force (Satgas PHK) as a proactive step to handle unilateral layoffs that often occur in the industrial world.
Following up on the directive, Minister of Manpower, Yassierli, emphasized that the President’s policy will be used as the basis for compiling the latest regulations regarding outsourcing.
“The president’s policy conveyed at the May Day 2025 celebration will certainly be the basic policy in the preparation of the regulation on outsourcing,” said Yassierli.
He stated that the outsourcing system has long been a source of anxiety for workers because it causes many problems, such as unclear work status, low wages, and minimal social protection.
“This issue has been rolling for almost two decades. We will adjust every policy to the principle of justice as stipulated in the 1945 Constitution,” he added.
Yassierli also revealed that the Ministry of Manpower is currently preparing a revision to employment regulations to make them fairer and in accordance with the President’s mandate and the Constitutional Court’s decision regarding the Job Creation Law.
Deputy Minister of Manpower, Immanuel Ebenezer Gerungan or Noel, emphasized that the decision to eliminate outsourcing would refer to a comprehensive technical study.
“There are definitely very technical things that have to be done,” he said.
Noel emphasized the importance of cross-sector collaboration to make this transformation a success.
“This is a good momentum to unite industry, workers, and the government in the spirit of patriotism,” he said.
With these various steps, the government confirms its commitment to presenting employment policies that are fair and support the welfare of workers.***
