Outsourcing Companies Complained About Position Limitation

Ady Thea Dian Achmad, Mahinda Arkyasa

Outsourcing companies protested the upcoming regulation on outsourcing limitation, which will be stipulated under the Minister of Manpower and Transmigration regulation.

The Indonesian Outsourcing Business Association (Asosiasi Bisnis Alih Daya Indonesia – ABADI) confirmed that they will file a judicial review at the Supreme Court.

ABADI is concerned that in the long run, the regulation will eventually shutdown their businesses.

“The Government should address outsourcing misconduct, which leads to violation of laborers’ rights, instead of regulating the outsourcing limitation,” said ABADI’s Chairman Wisnu Wibowo, Friday (9/11)

According to Wisnu, the Government must strengthen laws and regulations on outsourcing and apply strict procedures on outsourcing licensing, because the number of outsourcing businesses that violate the laws and regulations is significant.

For example, Wisnu explained that out of 12,000 outsourcing businesses, only 6000 businesses are registered at the Ministry of Manpower and Transmigration.

Meanwhile, out of the 6000 businesses registered at the Ministry, only 100 businesses are members of ABADI.

Wisnu also criticized the Government for not involving ABADI in drafting of the new regulation.

“It seems that the Ministry has no intention of discussing the regulation with businesses,” he said in a press conference on Friday (9/11).

Ministry of Manpower and Transmigration confirmed that the new regulation draft has been delivered to the National Tripartite Cooperation Body (LKS Tripartit) to be discussed and finalized. 

Head of Legal Bureau of the Ministry Sunarno explained that through LKS Tripartit, the Government has discussed the draft with labor unions and businesses.

“The Ministry has also discussed the draft with other stakeholders apart from labor unions and businesses,” he stated to hukumonline.

Indra, a member of Commission III of the House (Prosperous Justice Party), urged the Government to accommodate the interests of both labor unions and businesses.

The Government, Indra added, must apply firm sanctions to businesses that violate laws and regulations, especially labor-related laws and regulations.

 “I am confident that conflicts and problems can be averted if businesses comply with laws and regulations and if the Government maintains its integrity,” he stated to hukumonline.

As previously reported, the government plans to limit the outsourcing practice by stipulating the types of sectors that can be outsourced.

The limitation will only allow outsourcing for security, cleaning services, catering services, oil and gas mining supporting activities, and labor transport services.

Meanwhile, fixed-term contracts and business functions outsourcing (pemborongan pekerjaan) are not limited in their outsourcing practices.

(hot/jt)


 [A1]I don’t think this is important hot. So I think this part can be removed.

Ady Thea Dian Achmad, Mahinda Arkyasa

Outsourcing companies protested the upcoming regulation on outsourcing limitation, which will be stipulated under the Minister of Manpower and Transmigration regulation.

The Indonesian Outsourcing Business Association (Asosiasi Bisnis Alih Daya Indonesia – ABADI) confirmed that they will file a judicial review at the Supreme Court.

ABADI is concerned that in the long run, the regulation will eventually shutdown their businesses.

“The Government should address outsourcing misconduct, which leads to violation of laborers’ rights, instead of regulating the outsourcing limitation,” said ABADI’s Chairman Wisnu Wibowo, Friday (9/11)

According to Wisnu, the Government must strengthen laws and regulations on outsourcing and apply strict procedures on outsourcing licensing, because the number of outsourcing businesses that violate the laws and regulations is significant.

For example, Wisnu explained that out of 12,000 outsourcing businesses, only 6000 businesses are registered at the Ministry of Manpower and Transmigration.

Meanwhile, out of the 6000 businesses registered at the Ministry, only 100 businesses are members of ABADI.

Wisnu also criticized the Government for not involving ABADI in drafting of the new regulation.

“It seems that the Ministry has no intention of discussing the regulation with businesses,” he said in a press conference on Friday (9/11).

Ministry of Manpower and Transmigration confirmed that the new regulation draft has been delivered to the National Tripartite Cooperation Body (LKS Tripartit) to be discussed and finalized. 

Head of Legal Bureau of the Ministry Sunarno explained that through LKS Tripartit, the Government has discussed the draft with labor unions and businesses.

“The Ministry has also discussed the draft with other stakeholders apart from labor unions and businesses,” he stated to hukumonline.

Indra, a member of Commission III of the House (Prosperous Justice Party), urged the Government to accommodate the interests of both labor unions and businesses.

The Government, Indra added, must apply firm sanctions to businesses that violate laws and regulations, especially labor-related laws and regulations.

 “I am confident that conflicts and problems can be averted if businesses comply with laws and regulations and if the Government maintains its integrity,” he stated to hukumonline.

As previously reported, the government plans to limit the outsourcing practice by stipulating the types of sectors that can be outsourced.

The limitation will only allow outsourcing for security, cleaning services, catering services, oil and gas mining supporting activities, and labor transport services.

Meanwhile, fixed-term contracts and business functions outsourcing (pemborongan pekerjaan) are not limited in their outsourcing practices.

(hot/jt)


 [A1]I don’t think this is important hot. So I think this part can be removed.

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