KSPI: Labour Ministry Outsourcing Regulation Merely Lip Service, Like a Gift from the President
JAKARTA - The Indonesian Confederation of Trade Unions (KSPI) views the Ministry of Manpower Regulation (Permenaker) No. 7 of 2026 on outsourced or alih daya workers as merely “lip service” and failing to resolve labour problems.
KSPI President Said Iqbal even described the policy as seemingly a “gift” to workers, yet it provides no real protection.
“This Permenaker on outsourcing was created just for lip service. As if this is a gift from the President. And it gives the impression of deceiving the President. We can’t have that. The KSPI members already understand,” he stated during a press conference via Zoom on Monday (4/5/2026).
“It’s not that we’re accusing, but it seems like quote unquote deceiving the President. As if the workers’ demands to abolish outsourcing and reject low wages have been addressed by the government, so it appears as a gift,” he added.
He revealed that the regulation actually contradicts the Constitutional Court (MK) Decision No. 168 of 2024, which was previously won by trade unions, including KSPI.
He emphasised that the regulation should explicitly prohibit the use of outsourcing in direct production processes or core company activities.
“In this Permenaker No. 7 of 2026, because it does not regulate which categories of jobs are prohibited, it leads to the assumption that it’s allowed,” said Iqbal.
Said Iqbal explained that sanctions that are only administrative in nature are seen as not providing a deterrent effect to companies.
“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 expired before they act, no longer using outsourcing,” he said.
“After that, they change the PT, then create outsourcing again, right, after the three warning letters, the administration is done. The sanctions are unclear,” he continued.
“On Thursday, 7 May 2026, around a thousand KSPI workers together with the Labour Party will protest at the Ministry of Manpower and simultaneously in several cities,” said Iqbal.
He added that KSPI is giving the Ministry of Manpower a two-week deadline to revise the regulation.