Jakarta – The government’s commitment to strengthening labor protection continues to be demonstrated through strategic steps, one of which is the preparation of regulations to abolish the outsourcing system. This move directly responds to President Prabowo Subianto’s directive delivered during the 2025 International Workers’ Day (May Day) celebration in Jakarta.
Minister of Manpower Yassierli revealed that President Prabowo’s directive serves as the main basis for preparing the Ministerial Regulation (Permenaker) regarding the abolition of the outsourcing system. The President’s statement is evidence that the government is aspirational and listens to the concerns of workers who have long been disadvantaged by outsourcing practices.
“As the Minister of Manpower, I welcome and will be ready to implement the President’s directives regarding outsourcing,” said Yassierli in Jakarta.
Furthermore, Yassierli explained that the outsourcing issue has been a long-standing labor issue for nearly two decades. In practice, this system often leads to various problems, such as the outsourcing of core business activities, job uncertainty, low wages, minimal social protection, and the difficulty workers face in forming unions.
The Minister emphasized that all labor policies must uphold constitutional values, as stipulated in Article 27 paragraph (2) and Article 28D paragraph (2) of the 1945 Constitution, which guarantees every citizen’s right to work and earn a decent living.
Yassierli also added that the government is conducting an in-depth study to draft a more just Labor Law.
“This step is part of the President’s mandate and a follow-up to the Constitutional Court’s (MK) Decision No. 168/2023 regarding the revision of Law No. 6 of 2023 on Job Creation,” he said.
The Labor Regulation Committee of the Indonesian Employers Association (Apindo), Mira Sonia, stated that the outsourcing system can still be implemented as long as it meets the principles of worker protection and legal compliance. Apindo encourages strengthening monitoring mechanisms to ensure that outsourcing providers and users fulfill their obligations fairly and transparently.
The government is also preparing the National Labor Welfare Council as a supporting instrument to develop an appropriate transition scheme. The goal is to ensure that the abolition of outsourcing does not create new disturbances but instead becomes a foundation for a more humane and sustainable labor ecosystem.
