Labour Minister's Outsourcing Regulation Criticised, PAN: Workers' Aspirations Must Be the Reference
Minister of Manpower (Menaker) Yassierli has issued Ministerial Regulation on Employment (Permenaker) No. 7 of 2026 on outsourced workers, which continues to face rejection from labour groups. Member of Commission IX of the House of Representatives from the PAN faction, Ashabul Kahfi, assesses that the regulation has strengthened labour protections but notes several aspects that the government should consider.
“First, we in Commission IX of the Indonesian House of Representatives note that the government has issued Permenaker No. 7 of 2026 on outsourcing work as a follow-up to the Constitutional Court decision, with the aim of strengthening labour protections and providing legal certainty. It includes limitations on the types of outsourcing work to certain sectors, as well as obligations to fulfil workers’ rights such as wages, social security, and occupational safety,” said Ashabul to reporters on Tuesday (5/5/2026).
“However, we also understand the rejection from labour circles. This indicates that the regulation has not fully addressed fundamental issues, particularly regarding outsourcing practices that have been considered too broad and prone to abuse,” he added.
Ashabul highlighted government oversight in the implementation of the regulation. He reminded of the importance of government supervision in the field.
“First, regarding implementation. From past experience, the main problem is not only in the norms but in supervision. Many companies do not comply with the rights of outsourced workers. So, if supervision is weak, no matter how good the rules are, they will not be effective,” he said.
Ashabul then touched on the certainty of employment status for workers in core jobs. According to him, the government should provide strong guarantees on this matter, which has long been a demand of workers.
“Second, regarding employment status certainty. Workers still see no strong guarantee for the elimination of outsourcing practices in core jobs. Yet this has been the main demand of labour unions for a long time,” he said.
Ashabul continued, emphasising the importance of the government involving labour participation when drafting the regulation.
“We see the importance of more substantive involvement of labour unions in the formulation and evaluation of derivative regulations like this Permenaker, so that policies are truly responsive to field conditions,” he said.
Ashabul also urged the government to synchronise the new Permenaker regulation with future revisions to the Manpower Law. He called for the government to conduct an open evaluation of the Permenaker.
“We also encourage strengthening labour supervision in the field and ensuring that outsourcing restrictions are truly firm, especially not entering core jobs,” he said.
“And if necessary, carry out revisions or improvements to the regulation to better address workers’ demands. In essence, the House of Representatives views this regulation as an initial step but not final. Workers’ aspirations must remain the main reference in perfecting future labour policies,” he added.
Previously, KSPI President and Labour Party President Said Iqbal stated that the Permenaker must be revised immediately because it contradicts the Constitutional Court (MK) decision and does not address the real problems faced by workers in the field.
“Permenaker No. 7 of 2026 must be revised. Its content contradicts Constitutional Court Decision No. 168 of 2024, which was won by the Labour Party, KSPI, KSPSI, and FSPMI. In addition, this regulation does not address factual issues that harm workers,” Said Iqbal emphasised in a virtual press conference reported by detikFinance on Monday (4/5).
In substance, KSPI assesses that there are several fundamental problems in the regulation. First, the lack of firmness regarding the types of work prohibited from using outsourcing labour.
In Law No. 13 of 2003 and Permenaker No. 19 of 2012, it is clearly stipulated that core work or direct production processes must not be outsourced. However, in the latest Permenaker, this provision is omitted, thus opening legal loopholes.
“Without an explicit prohibition, work in direct production processes can be outsourced. This is dangerous because it opens wider room for exploitation,” Said Iqbal stressed.