Indonesian Political, Business & Finance News

KSPI Demands Revision of Labour Ministry Regulation on Outsourcing, Citing Conflict with Constitutional Court Ruling

| | Source: KOMPAS Translated from Indonesian | Regulation
KSPI Demands Revision of Labour Ministry Regulation on Outsourcing, Citing Conflict with Constitutional Court Ruling
Image: KOMPAS

JAKARTA - The Indonesian Confederation of Workers’ Unions (KSPI) has demanded a revision of Labour Ministry Regulation (Permenaker) No. 7 of 2026 on outsourcing workers, deeming it to conflict with a Constitutional Court (MK) ruling.

KSPI President and Labour Party figure Said Iqbal made this statement during a press conference via Zoom on Monday (4/5/2026).

“Permenaker No. 7 of 2026 on outsourcing workers must be revised. Its content contradicts the mandate of Constitutional Court Decision No. 168 of 2024, in the lawsuit won by the Labour Party, KSPI, KSPSI Andi Gani, and FSPMI,” he said during the press conference.

One point criticised is the lack of firm regulations on the types of work prohibited from using outsourced labour.

“The regulation does not specify which jobs are prohibited from using outsourced workers or outsourcing,” Said Iqbal stated.

“Outsourced 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 known as services and trade,” he added.

He also highlighted the addition of the phrase “supporting operational services” in the regulation.

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

KSPI also criticised the sanctions in the regulation, which they believe do not provide a deterrent effect for companies.

Based on these criticisms, Said Iqbal stated that KSPI is demanding the government revise the regulation soon.

“From now on, KSPI respectfully requests the Labour Minister to revise Permenaker No. 7 of 2026 within two times seven days,” he said.

“On Thursday, 7 May 2026, around a thousand KSPI workers along with the Labour Party will stage a protest at the Labour Ministry and simultaneously in several cities,” he added.

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