{
    "success": true,
    "data": {
        "id": 1716721,
        "msgid": "kspi-deems-sanctions-in-2026-outsourcing-labour-regulation-ineffective-in-deterring-companies-1777888505",
        "date": "2026-05-04 16:16:33",
        "title": "KSPI Deems Sanctions in 2026 Outsourcing Labour Regulation Ineffective in Deterring Companies",
        "author": "Abdul Haris Maulana",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Regulation",
        "summary": "The Indonesian Confederation of Workers' Unions (KSPI) has criticised the sanctions outlined in Ministerial Labour Regulation No. 7 of 2026 on outsourcing workers, arguing that administrative penalties fail to provide a sufficient deterrent for violating companies. KSPI President Said Iqbal highlighted that previous laws, such as Law No. 13 of 2003, offered stronger protections by automatically converting outsourced workers to direct employees upon violations, thereby ensuring access to severance pay, health insurance, pensions, and other benefits. The union is calling for a revision of the regulation, citing its conflict with a 2024 Constitutional Court ruling that they helped secure.",
        "content": "<p>JAKARTA, KOMPAS.com - The Indonesian Confederation of Workers\u2019 Unions\n(KSPI) assesses that the sanctions in Ministerial Labour Regulation\n(Permenaker) No.\u00a07 of 2026 on outsourced or alih daya workers do not\nprovide a deterrent effect for companies.<\/p>\n<p>KSPI President and Labour Party President, Said Iqbal, stated that\nthe sanctions stipulated in the regulation are not strong enough to\nprevent violations.<\/p>\n<p>\u201cIndeed, there are administrative sanctions in Permenaker No.\u00a07 of\n2026. What are administrative sanctions? It\u2019s unclear,\u201d he said during a\npress conference via Zoom on Monday (4\/5\/2026).<\/p>\n<p>According to him, this situation indicates a lack of deterrent effect\nfor violating companies.<\/p>\n<p>\u201cIt could be a first warning letter, oh, they use outsourcing. Second\nwarning, they use outsourcing even longer. Third warning, outsourcing is\nalready exhausted before they comply,\u201d he explained.<\/p>\n<p>Said Iqbal mentioned that previous regulations, namely Law No.\u00a013 of\n2003 on Manpower and Permenaker No.\u00a019 of 2012, provided firmer legal\nconsequences.<\/p>\n<p>He explained that under those rules, if a company violates the\nprovisions on the use of outsourced workers, the employment relationship\nof the workers automatically shifts to a direct relationship with the\nemployer.<\/p>\n<p>\u201cWhat does that mean? The law protects. If they have a direct\nrelationship with the employer, then the workers\u2019 rights in case of\ntermination of employment or layoffs emerge,\u201d he said.<\/p>\n<p>\u201cThey get severance pay, health insurance, pension guarantees, work\naccident insurance, old-age guarantees,\u201d he continued.<\/p>\n<p>According to Said Iqbal, the sanction mechanism in the old\nregulations provides a greater deterrent effect compared to the\nadministrative sanctions in the latest Permenaker.<\/p>\n<p>Previously reported, the Indonesian Confederation of Workers\u2019 Unions\n(KSPI) has requested a revision of Ministerial Labour Regulation\n(Permenaker) No.\u00a07 of 2026 on outsourced workers (outsourcing) because\nit is deemed to contradict the Constitutional Court (MK) decision.<\/p>\n<p>This was stated by KSPI President and Labour Party, Said Iqbal,\nduring a press conference session via Zoom on Monday (4\/5\/2026).<\/p>\n<p>\u201cPermenaker No.\u00a07 of 2026 on outsourced workers must be revised.\nBecause its content contradicts the order of Constitutional Court\nDecision No.\u00a0168 of 2024, the lawsuit of which was won by the Labour\nParty, KSPI, KSPSI Andi Gani, and FSPMI,\u201d he said in that press\nconference session.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/kspi-deems-sanctions-in-2026-outsourcing-labour-regulation-ineffective-in-deterring-companies-1777888505",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}