Government Limits Outsourcing to Specific Fields Only

JAKARTA - The Ministry of Manpower (Kemenaker) has restricted the use of outsourced workers to only a few specific job sectors. These restrictions are regulated in Ministerial Regulation on Manpower (Permenaker) Number 7 of 2026 on Outsourced Work. Minister of Manpower Yassierli stated that the regulation represents the government’s concrete efforts to protect workers. “The policy aims to provide legal certainty, strengthen the protection of workers’ rights, and maintain business continuity,” Yassierli said in his official statement on Thursday (30/4/2026). The permitted outsourcing areas include catering and beverages, provision of drivers and work transportation, operational support services, and auxiliary work in the mining, oil and gas, and electricity sectors. The government also requires companies employing outsourced workers to have a written agreement with the outsourcing company. The agreement must cover at least the type of work, work location, duration, number of workers, labour protection, and the rights and obligations of the parties. These rights include annual leave, wages, overtime pay, occupational safety and health (K4), working hours and rest periods, social security for health and employment, and severance pay for termination of employment (PHK). “This Permenaker is a follow-up to the Constitutional Court Decision Number 168/PUU-XXI/2023, which mandates restrictions on outsourced work,” Yassierli explained. Sanctions apply to both outsourcing companies and employing companies. “Through this Permenaker, the Government reaffirms its commitment to promoting the implementation of harmonious, transformative, and just industrial relations, with the spirit of advancing industry and prosperous workers,” Yassierli added. Article 10 of the Permenaker states that the types and fields of outsourcing work in outsourcing and employing companies must be adjusted to the new provisions within a maximum of two years. “No later than two years from the date of promulgation,” Yassierli stated.