Said Iqbal Seeks Strict Limitations on Outsourcing in Labour Bill

Said Iqbal, the Special Adviser to the President on Labour and Worker Welfare, stated that one of his primary focuses in the discussions regarding the Draft Labour Law (RUU Ketenagakerkaan) will be the limitation of outsourcing practices. According to him, regulations concerning outsourced workers need to be tightened to provide job security for labourers amidst current employment challenges.

“We must ensure that in the draft law, outsourcing—contract labour—can be abolished if possible. If not, it should at least be strictly limited,” said Said following his inauguration at Istana Merdeka, Central Jakarta, on Monday (8/6).

He suggested that these limitations could be implemented by restricting the types of jobs permitted to use the outsourcing system, such as limiting it to only four or five types of supporting roles.

Said believes that job security is a vital aspect of efforts to improve worker welfare. Consequently, the economic growth targeted by the government must be balanced with the creation of higher-quality employment opportunities. He noted that Indonesia currently faces challenges including waves of layoffs (PHK) and symptoms of deindustrialisation affecting the formal sector.

To address this, he plans to provide various policy inputs and analyses to President Prabowo Subianto to encourage reindustrialisation and expand employment opportunities within the formal sector. “We want workers in the formal sector to be able to return to work in factories, companies, and other workplaces,” he said.

In addition to job security, Said also highlighted the importance of income security. He argued that workers must receive decent wages to ensure they have the ability to save and maintain purchasing power. “With decent wages, we must ensure people can save,” he added, noting that increasing decent wages could serve as an instrument to boost public consumption and support economic growth.

Furthermore, he emphasised the importance of social security as part of the effort to enhance worker welfare. Said stated that these three pillars—job security, income security, and social security—will be his main focus when providing policy advice and analysis to the President.

Said Iqbal was officially inaugurated as the Special Adviser to the President on Labour and Worker Welfare on Monday (8/6). The President of the Labour Party and the Indonesian Confederation of Trade Unions (KSPI) stated that he will focus on overseeing various labour issues, including the upcoming discussions on the Labour Bill.