Outsourcing Becomes One of the Main Considerations in the Employment Bill
Outsourcing, or the transfer of labour, is said to be one of the important points that will be discussed in Law Number 13 of 2003 on Employment.
This was stated by Deputy Chairman of Commission IX of the DPR, Charles Honoris, who is a partner of the Ministry of Manpower (Kemenaker).
“Outsourcing is included; this will become one of the main considerations,” said Charles at GOR Otista, Jakarta, on Sunday (3/5/2026).
Input from various elements of society, especially worker union groups, is an initial step that must be taken.
“So from our side, we will certainly listen first to input from the public, including worker union groups, to later determine what we will prioritise in this bill,” Charles explained.
“There are 11 issues or 11 hopes that KSPI wants to convey, supported by the Labour Party, in this May Day celebration to the government, both central government and regional governments throughout Indonesia,” said KSPI President and Labour Party, Said Iqbal, in an online press conference on Wednesday (29/4/2026).
One of the hopes from the 11 demands to be submitted on the 2026 International Labour Day commemoration is the abolition of outsourcing or contract workers.
“HOS, abolish outsourcing. TUM, reject low wages,” Said emphasised.
Worker groups also highlighted the impact of global conflicts that could trigger mass layoffs (PHK) in Indonesia, so the government is asked to anticipate that risk.
KSPI is pushing for tax reform, including raising the non-taxable income threshold to Rp 7.5 million and abolishing tax on holiday allowances (THR), old-age security, severance pay, and pension security.
“There are several crucial issues that are very important for Indonesian workers to be answered and affirmed by Mr President Prabowo Subianto, which of course is progress or follow-up from the requests, hopes, and issues brought by KSPI,” Said stated.
“If possible, it must be completed this year as well. And that law must side with the working class,” said Prabowo during the 2026 International Labour Day (May Day) commemoration at Monas, Jakarta, on Friday (1/5/2026).
He emphasised that he has instructed the Minister of Manpower and the Minister of Law to immediately coordinate with the DPR to accelerate the discussion of the bill.
“I have also given instructions to the Minister of Manpower and the Minister of Law to immediately, together with the DPR RI, complete the Employment Bill,” Prabowo said.