By: Ninda Syifa )*
The government of President Prabowo Subianto has demonstrated a strong commitment to improving national employment conditions by announcing the formation of the National Labor Welfare Council (DKBN). This policy is a concrete response to the aspirations of workers who have highlighted injustice in outsourcing practices for the past two decades. In commemoration of International Labor Day on May 1, 2025, President Prabowo firmly stated that the government will not remain silent on employment issues that threaten the dignity and welfare of Indonesian workers.
The formation of the DKBN is a strategic step that shows that the state is present in responding to the challenges of industrial relations. This council is not only symbolic, but also has a substantive mandate to provide direct input to the President regarding regulatory reform and employment policies. By bringing together labor figures from all over Indonesia, the DKBN becomes a representative forum that strengthens the position of workers in national decision-making.
One of the main focuses of the DKBN is to explore and formulate an appropriate transition mechanism in eliminating the outsourcing system. Outsourcing practices have often given rise to vulnerability in employment status, low wages, and the absence of social security for workers. Although on the one hand it is considered to provide flexibility to the business world, in practice outsourcing benefits capital owners more than workers. The government is aware of this and is trying to prioritize social justice without ignoring the need to maintain a healthy investment climate.
President Prabowo emphasized that the policy to eliminate outsourcing must be implemented realistically and gradually. The government does not want this policy to have a counterproductive impact on economic stability and job creation. Therefore, the existence of the DKBN is important to design measurable stages and consider legal, social, and economic aspects as a whole. The government is also aware that changes in employment regulations require active participation from all stakeholders, including employers, workers, and the state.
Minister of Manpower Yassierli has confirmed that his party is conducting a series of dialogues with trade unions and the Indonesian Employers’ Association (Apindo) as an initial step in forming the DKBN. This effort is being made so that the formation of the council is truly based on aspirations in the field and answers the real needs of workers and business actors. In addition, this plan will also be consulted through the National Tripartite Cooperation Institute and the National Wage Council to ensure compliance with the existing national policy framework.
Yassierli stated that the elimination of outsourcing is a demand that has long been echoed by workers and is often a source of inequality in industrial relations. Therefore, the formation of the DKBN is expected to be a strategic momentum to formulate fairer and more sustainable policies. The government also opens up the widest possible space for social dialogue so that the policies taken truly reflect common interests, not unilateral interests.
President Prabowo’s steps in forming the DKBN are also accompanied by other initiatives to strengthen worker protection. The government will form a Termination of Employment Task Force (Satgas PHK) to prevent unilateral layoffs that are detrimental to workers. In addition, the government is committed to accelerating the discussion of the Draft Law on the Protection of Domestic Workers, as well as protection for workers in the sea and fisheries sector. All of these policies show that the government is trying to create a more humane and equitable employment system.
This government commitment has received a positive response from various elements of the labor movement. With the direct involvement of worker figures in the DKBN, it is hoped that the direction of employment policy will no longer be top-down, but will be born from a participatory process that upholds the values of economic democracy. The government is trying to break the chain of exploitation in employment relations, which has been embedded in outsourcing practices that have minimal legal protection for workers.
In a global context, Indonesia’s steps to eliminate the outsourcing system through consultative mechanisms and institutions such as the DKBN can be an example for other countries in managing employment issues. This policy also strengthens Indonesia’s position in international employment forums such as the International Labor Organization, because it reflects the country’s serious efforts to advance decent work and inclusive development.
In the future, the success of the DKBN in formulating strategies to eliminate outsourcing and reform employment will be largely determined by political commitment and consistency in its implementation. The government must ensure that the results of the DKBN’s recommendations are trulyaccommodated in the national legislative and regulatory process. No less important, supervision of implementation in the field also needs to be strengthened so that there are no deviations by interested parties.
The elimination of outsourcing is not just a technical policy, but a manifestation of the state’s support for the worker group as one of the main pillars of national development. With this policy, the government under President Prabowo’s leadership shows that worker welfare is not just a campaign promise, but a strategic agenda that is being realized in a real and measurable way. A new narrative about social justice for all Indonesian people is also beginning to take shape, starting with proper and dignified treatment for workers.
)* The author is a Public Policy Observer
