Government Limits Outsourcing Jobs to Only 6 Sectors

Manpower Minister Yassierli has further restricted the types of jobs that can be outsourced by user companies, also known as outsourcing. This policy is outlined in Ministerial Regulation No. 7 of 2026 on Outsourcing Work. “This policy aims to provide legal certainty, strengthen the protection of workers’ rights, and maintain business continuity,” said Yassierli in a written statement on Thursday, 30 April 2026. For several years, regulations on outsourced workers have been governed by Law No. 6 of 2023 on Job Creation. However, that law did not limit the fields of work for outsourced workers. In the regulation issued a day before Labour Day, the Ministry of Manpower limited outsourcing workers to six fields of work. The types of jobs are restricted to cleaning services, food and beverage provision, security, provision of drivers and transportation for workers, operational support services, and support work in the mining, oil, gas, and electricity sectors. Yassierli stated that Ministerial Regulation No. 7 of 2026 is a follow-up to the Constitutional Court Decision No. 168/PUU-XXI/2023, which mandated the limitation of outsourcing work. Under this regulation, the government requires outsourcing companies to have written agreements as proof of the contract. These agreements must at least include the type of outsourced work, duration, work location, number of workers, work protection, and the rights and obligations of the parties. Outsourcing companies are also required to fulfil all workers’ rights in accordance with relevant laws and regulations, including wages, overtime pay, working hours and rest periods, annual leave, occupational safety and health (K3), social security for health and employment, religious holiday allowances, and rights regarding termination of employment (PHK). This regulation also stipulates administrative sanctions for both user companies and outsourcing companies that fail to comply with the established provisions. These sanctions include written warnings and restrictions on business activities. “Through this Ministerial Regulation, the government reaffirms its commitment to continuously promoting the implementation of harmonious, transformative, and just industrial relations with the spirit of advancing the industry and prospering the workers,” he said.