JAKARTA – The government’s decision to eliminate the outsourcing system marks a significant step in ensuring labor justice in Indonesia.
President Prabowo Subianto, during the commemoration of Labor Day on May 1, 2025, reaffirmed his commitment to creating a more just labor system through the establishment of the National Labor Welfare Council. This council will serve as a strategic advisor in formulating labor policies that prioritize workers.
“This move is not merely a political response but a genuine effort by the state to guarantee justice and job security for the Indonesian workforce,” said President Prabowo Subianto.
Outsourcing, which has been in practice for over two decades, is now under intense scrutiny. Initially designed to provide flexibility for businesses, it has, in practice, led to many workers being trapped in short-term contracts with no job security and minimal welfare guarantees.
“Many workers over 40 years old are still categorized as outsourced labor, earning only the minimum wage, with no clear career advancement. This clearly shows an inequality that must be addressed immediately,” emphasized Minister of Manpower Yassierli.
The elimination of outsourcing cannot be done suddenly. Therefore, careful planning and a gradual transition are crucial to ensure its successful implementation.
“This policy must be designed cautiously so that it does not disrupt the investment climate, but still protects workers’ rights,” President Prabowo Subianto added.
The National Labor Welfare Council will serve as a bridge between workers’ aspirations and the needs of businesses, ensuring that the policy is implemented effectively without compromising the interests of both parties.
It is important to note that eliminating outsourcing does not mean closing the door to flexible work opportunities.
“This is, in fact, an opportunity to build a fairer and more transparent work system,” said Minister Yassierli.
Through this policy, it is hoped that a balance between the interests of workers and businesses will be achieved, which in turn will support national economic development.
With this move, the government also strengthens its commitment to the Sustainable Development Goals (SDGs), particularly in creating decent work and enhancing workers’ welfare.
“Through the elimination of outsourcing, Indonesia is committed to ensuring that all workers have equal opportunities to grow and contribute to the nation’s progress,” concluded President Prabowo Subianto.
