By: Wiji Adrianto
The government is preparing to eliminate the outsourcing system. This commitment was directly conveyed by President Prabowo Subianto during the commemoration of Labor Day on May 1, 2025.
The government’s plan to eliminate outsourcing is a breath of fresh air for Indonesia’s labor sector, especially for millions of workers who have been trapped in the outsourcing system that does not provide job security and decent welfare.
President Prabowo firmly instructed the establishment of the National Labor Welfare Council, which will play a central role in designing a gradual and well-measured mechanism to eliminate the outsourcing system. This council is planned to be composed of union leaders from various sectors, ensuring that the workers’ voices are the foundation of policy-making.
For over two decades, outsourcing has been used to provide flexibility to businesses. However, the reality on the ground has fallen far short of initial expectations. Many workers who have dedicated more than a decade to their jobs remain in outsourced positions, earning only the minimum wage, with no career advancement opportunities and no adequate social security. This phenomenon is a clear indication that the outsourcing policy has deviated from the principle of social justice guaranteed by the constitution.
President Prabowo emphasized that the policy to eliminate outsourcing is not merely a political promise but a concrete manifestation of the state’s commitment to ensuring the basic rights of workers. He stressed the importance of careful planning so that the transition to a fairer labor system does not disrupt the business world. In his statement, the President stated that this decision must be accompanied by policies that carefully balance maintaining the investment climate while not sacrificing workers’ rights.
Minister of Manpower Yassierli confirmed that the government is preparing in-depth studies as the basis for the policy to eliminate outsourcing. Speaking after the release of internship participants to Japan in Semarang, Yassierli explained that the President’s direction is very clear: eliminating outsourcing while considering its impact on investment. According to him, the outsourcing issue has not only been about labor flexibility, but also serious problems such as unclear wages, work status, and the loss of access to social security. He added that the National Labor Welfare Council will be at the forefront in formulating concrete steps to address these issues comprehensively.
A similar view was expressed by the President of the Indonesian Workers Union Association (Aspirasi), Mirah Sumirat. She believes that the current outsourcing system has deviated significantly from the spirit of Law No. 13 of 2003 on Manpower. According to Mirah, this law initially only allowed outsourcing for five types of jobs: security, mining, cleaning, drivers, and catering. However, with the introduction of the Omnibus Law, which has now become Law No. 6 of 2023, the regulation changed drastically. The term outsourcing was replaced with “alih daya” (outsourcing), and the scope of jobs that could be outsourced became unlimited.
Mirah added that outsourcing practices in the field have become increasingly complex, with the emergence of layered structures in several companies. Main jobs are outsourced to subsidiaries, which then outsource to further subsidiaries, worsening the condition of workers. Wages are cut, social security is not fulfilled, and workers’ status becomes precarious. Therefore, she believes that the policy to eliminate outsourcing must be accompanied by regulatory revisions and strengthened law enforcement to ensure that workers’ rights are genuinely protected.
Through this step, the government also shows its commitment to the Sustainable Development Goals (SDGs), particularly in creating decent work and inclusive economic growth. By eliminating the outsourcing system that has caused inequality, Indonesia is moving toward a fairer and more humane work environment.
This policy does not immediately close the door on work flexibility. On the contrary, it serves as a momentum to build a more transparent and accountable labor system. Minister Yassierli stated that flexibility can still be maintained through a fair work system based on direct contracts between companies and workers, without intermediaries who often disadvantage workers. This will increase work productivity as workers will feel more valued and protected.
The soon-to-be-established National Labor Welfare Council is expected to become a forum for dialogue between workers and the business world. The existence of this council is essential to ensure that all labor policies are based on deliberation and balanced representation. If well-designed and implemented, this policy could become a historic milestone in labor protection in Indonesia.
The policy to eliminate outsourcing is a significant reform that requires political courage, commitment, and cross-sector cooperation. The government has shown its seriousness by beginning the process of review and designing a special body to handle this. Amid global economic challenges and pressures on industry competitiveness, this policy shows that the government continues to prioritize social justice in development.
Therefore, President Prabowo Subianto’s move to eliminate outsourcing should be appreciated as a progressive policy that favors the people. It is a concrete manifestation of the state’s role in protecting workers, improving the labor system, and upholding justice in the world of work. The government has chosen a path that is not easy, but it is the right one—and public support should continue to flow to ensure that this labor reform truly comes to fruition.
*) The author is a public policy observer.
