Indonesian Political, Business & Finance News

Said Iqbal Not Insisting on Total Outsourcing Ban, Only Four Job Types Allowed

| Source: CNBC Translated from Indonesian | Regulation
Said Iqbal Not Insisting on Total Outsourcing Ban, Only Four Job Types Allowed
Image: CNBC

Jakarta - Special Presidential Adviser for Employment and Worker Welfare Said Iqbal stated he will oversee discussions on the draft Employment Law, including ensuring that outsourcing or contract work can be eliminated from the bill. However, he is not insisting on a total abolition of outsourcing.

He conveyed this after being sworn in by President Prabowo Subianto at the State Palace in Jakarta on Monday (8/6/2026). “We must ensure that in the draft law, outsourcing or contract workers can be eliminated. If not, it must at least be strictly limited. For example, only to four or five types of support work,” he said.

A similar statement was reiterated after he met with Deputy Minister of Manpower Afriansyah Noor at the Ministry of Manpower office in Jakarta on Thursday (11/6/2026). Said Iqbal, who is also President of the Confederation of Indonesian Trade Unions (KSPI), proposed a revision to Manpower Ministerial Regulation No. 7/2026 concerning Outsourced Work. He requested that outsourcing be restricted to specific types of work only.

He revealed this is in line with President Prabowo Subianto’s desire for the outsourcing system to be abolished. “The President has repeatedly said that if possible, outsourced workers should be eliminated, that is the President’s stance. In his speeches, he said if it cannot be eliminated, then there are several types of support work that are exempted and may use outsourced workers,” Said Iqbal said, as quoted by detikfinance on Friday (12/6/2026).

“There must be no obstacles to what the President wants. If there are communication barriers, we sit down together. This is my duty as the President’s Special Adviser for Employment and Worker Welfare. And I have communicated with Professor Sufmi Dasco Ahmad (Deputy Speaker of the Indonesian House of Representatives) as the President’s trusted person,” Said Iqbal remarked.

On the other hand, he stated there are still types of work that may use outsourced workers. “The President actually wants it abolished. But of course, there are several types of support work that may still use outsourcing,” Said Iqbal explained.

“Several types of support work that may use outsourced workers include support work for security or guarding, support work for drivers, support work for catering, meaning food provision in the company, and support work for cleaning services. Perhaps these can use outsourced workers,” he said.

Furthermore, he proposed that the status of outsourced workers must be clarified. He said outsourced workers must have a clear employment relationship with the labour supply company, either as contract workers (PKWT) or permanent workers (PKWTT). “So, no longer without status. In essence, protection for outsourced workers in these four types of work must also be clear. Outside these four types of work, the use of outsourced workers is prohibited,” he asserted.

Previously, in Manpower Ministerial Regulation No. 7/2026, Minister of Manpower Yassierli stipulated six types of work permitted to be outsourced. These are cleaning services, food and beverage provision, security, provision of drivers and worker transport, operational support services, and support work in the mining, oil and gas, and electricity sectors.

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