The Minister Signed a Regulation on Outsourcing Limitation

 

Antara / Mahinda Arkyasa

On Friday (16/11), Minister of Manpower and Transmigration Muhaimin Iskandar (Minister) confirmed that he has signed a Minister Regulation on positions that may be outsourced. He added that the regulation will come into force as soon as possible.

It should be noted that the new regulation has received negative response from businesses before it was even signed by the Minister. However, the Minister refused to back down and decided to proceed with signing of the regulation.

The new regulation only allows labor outsourcing (penyediaan tenaga kerja) in the following five sectors: security, janitor/cleaning services, catering services, oil and gas mining supporting activities, and also the transportation services.

 “…Labor outsourcing can only be utilized for the five mentioned business sectors. Other sectors must sub contract their work to a company (pemborongan pekerjaan) or employ laborers using the temporary work arrangement (PKWT) scheme,” the Minister explained.

The new regulation also limits the number of labor outsourcing companies and guarantees the future of laborers who are currently employed under the outsourcing system.

The Minister further added that the Government will not hesitate to revoke an outsourcing company business license if it abuses or violates laborers’ rights. The minister affirmed that outsourcing must be conducted in accordance with Law No. 13 of 2003 on Labor.

Muhaimin admitted that currently, there are many cases of outsourcing misconduct that involve abuse of laborers’ rights. Outsourcing companies often pay laborers below the determined minimum wage and do not provide allowances, insurance, or social security.

In order to ensure outsourcing companies’ compliance with the Labor Law, he stated that strict supervision will be applied on outsourcing companies that are scattered all over Indonesia.

He further informed that based on the data collected by manpower and transmigration offices at  provincial level, there are 6,239 outsourcing companies employing a total of 338,505 laborers as of 10 October 2012.

“Ministry of Manpower and Transmigration has been dispatching special teams and coordinating with local manpower and transmigration offices in order to record the number of outsourcing companies,” the Minister stated.

He also informed that several outsourcing companies in several provinces, including Aceh and West Sumatera, have been shut down for failing to ensure the fulfillment of laborers rights.

(Jt/ds)

 

Antara / Mahinda Arkyasa

On Friday (16/11), Minister of Manpower and Transmigration Muhaimin Iskandar (Minister) confirmed that he has signed a Minister Regulation on positions that may be outsourced. He added that the regulation will come into force as soon as possible.

It should be noted that the new regulation has received negative response from businesses before it was even signed by the Minister. However, the Minister refused to back down and decided to proceed with signing of the regulation.

The new regulation only allows labor outsourcing (penyediaan tenaga kerja) in the following five sectors: security, janitor/cleaning services, catering services, oil and gas mining supporting activities, and also the transportation services.

 “…Labor outsourcing can only be utilized for the five mentioned business sectors. Other sectors must sub contract their work to a company (pemborongan pekerjaan) or employ laborers using the temporary work arrangement (PKWT) scheme,” the Minister explained.

The new regulation also limits the number of labor outsourcing companies and guarantees the future of laborers who are currently employed under the outsourcing system.

The Minister further added that the Government will not hesitate to revoke an outsourcing company business license if it abuses or violates laborers’ rights. The minister affirmed that outsourcing must be conducted in accordance with Law No. 13 of 2003 on Labor.

Muhaimin admitted that currently, there are many cases of outsourcing misconduct that involve abuse of laborers’ rights. Outsourcing companies often pay laborers below the determined minimum wage and do not provide allowances, insurance, or social security.

In order to ensure outsourcing companies’ compliance with the Labor Law, he stated that strict supervision will be applied on outsourcing companies that are scattered all over Indonesia.

He further informed that based on the data collected by manpower and transmigration offices at  provincial level, there are 6,239 outsourcing companies employing a total of 338,505 laborers as of 10 October 2012.

“Ministry of Manpower and Transmigration has been dispatching special teams and coordinating with local manpower and transmigration offices in order to record the number of outsourcing companies,” the Minister stated.

He also informed that several outsourcing companies in several provinces, including Aceh and West Sumatera, have been shut down for failing to ensure the fulfillment of laborers rights.

(Jt/ds)

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