KSPI Criticism of Labour Ministry Outsourcing Regulation, Deemed Grey and Open to Multiple Interpretations

JAKARTA, KOMPAS.com - The Indonesian Confederation of Trade Unions (KSPI) has voiced dissatisfaction with the newly issued Ministerial Regulation on Employment (Permenaker) No. 7 of 2026 on outsourcing workers.

KSPI President and Labour Party figure, Said Iqbal, outlined several criticisms of the regulation. He also urged the government to revise the policy immediately.

“From now on, KSPI respectfully requests the Minister of Manpower to revise Permenaker No. 7 of 2026 within two times seven days,” he stated during a press conference via Zoom on Monday (4/5/2026).

This refers to the term “supporting operational services” in the regulation.

“What is the definition of supporting operational services? This is intended to be made absurd, turned into a grey area by the Ministry of Manpower, so that anything is allowed,” he said.

According to him, the government should strictly prohibit the use of outsourcing for direct production sectors and core activities that are crucial to a company’s operations.

In fact, previous regulations such as Law No. 13 of 2003 and Permenaker No. 19 of 2012 clearly stipulated that outsourcing workers must not be placed in direct production processes or core company activities.

“Outsourcing workers are prohibited from being used in direct production processes for the manufacturing industry, and or core activities for non-manufacturing industries or what is commonly referred to as services and trade,” he stated.

The next point concerns the administrative sanctions in the policy. According to KSPI, administrative sanctions will not deter companies that violate the rules.

“What is an administrative sanction? It’s unclear. It could be a first warning letter, oh, outsourcing is used. Second warning, outsourcing is used for longer. Third warning, outsourcing has already expired before it’s enforced, no longer using outsourcing,” he explained.

Said Iqbal assessed that the Permenaker is merely formalistic and does not address the main issues in the field. In fact, he called the regulation as if it were a “gift” that is perceived to have answered the workers’ demands.

“This Permenaker (outsourcing) is made just for show. As if this is a gift from the president. And it gives the impression of deceiving the president. It shouldn’t be like that. The KSPI children already understand,” he said.

“It’s not that we are accusing, but it gives the impression in quotes of deceiving the president. As if the workers’ demands to eliminate outsourcing and reject low wages have been answered by the government, so it seems in the form of a gift,” he continued.