Businesses: Outsourcing Regulation Must Be Reviewed

Ady Thea Dian Achmad, Mahinda Arkyasa

Business associations and outsourcing companies, including Indonesian Chamber of Commerce and Industry (Kadin), Indonesia Employers Association (Apindo), and Indonesian Outsourcing Association (Abadi), on 14 February 2013, filed for a judicial review of Ministry of Manpower and Transmigration Regulation No. 19 of 2012 on Requirements for Outsourcing (Regulation) at the Supreme Court.

The applicants argued that Articles 1 (3) and 17 (3) of the Regulation contradict several laws and regulations, including Law No. 12 of 2011 on Establishment of Laws and Regulations, Law No. 17 of 2012 on Cooperatives, and Law No. 13 of 2003 on Labor (Labor Law).

Darmanto, the applicants’ attorney, explained that Article 1 (3) of the Regulation explicitly states that an outsourcing company must be a legal entity in the form of a limited liability company.

He argued that the form of an outsourcing company should not be restricted to a limited liability company, because there are other forms of legal entities, such as cooperatives.

He also highlighted that Article 17 (3) of the Regulation limits business activities that may be outsourced to five activities, including janitor/cleaning services, catering services, security, oil and mining supporting activities, and labor transport services.

Darmanto insisted that outsourcing should be allowed for other business activities. He also stated that the Regulation was drafted without involving stakeholders.

“We want the Regulation to be declared as contradicting other laws and regulations,” he said in a press conference at Kadin’s office on Thursday (28/2).

Wisnu Wibowo, Chairman of Abadi, explained that businesses requested a judicial review because the Regulation has caused considerable losses for many parties, including laborers.

“The request for judicial review was submitted with a hope that it will assist in maintaining business climate, harmonize industrial relationships, and prevent massive layoffs,” Wisnu stated.

Meanwhile, Hasanudin Rachman, member of Kadin and Chairman of Industrial Relations and Advocacy at Apindo’s National Executive Council, argued that the Regulation was hastily drafted and issued without considering the input from the National Tripartite Cooperation Body (LKS Tripnas).

However, Ruslan Irianto Simbolon, Director General of Industrial Relations Development and Social Security at the Ministry of Manpower and Transmigration, stated that the Government has done its’ best effort to accommodate every stakeholder’s interest in the Regulation.

“We have invited every stakeholder in drafting and discussing the Regulation,” he informed in conclusion to hukumonline via telephone, Thursday (28/2).

(jt)

Ady Thea Dian Achmad, Mahinda Arkyasa

Business associations and outsourcing companies, including Indonesian Chamber of Commerce and Industry (Kadin), Indonesia Employers Association (Apindo), and Indonesian Outsourcing Association (Abadi), on 14 February 2013, filed for a judicial review of Ministry of Manpower and Transmigration Regulation No. 19 of 2012 on Requirements for Outsourcing (Regulation) at the Supreme Court.

The applicants argued that Articles 1 (3) and 17 (3) of the Regulation contradict several laws and regulations, including Law No. 12 of 2011 on Establishment of Laws and Regulations, Law No. 17 of 2012 on Cooperatives, and Law No. 13 of 2003 on Labor (Labor Law).

Darmanto, the applicants’ attorney, explained that Article 1 (3) of the Regulation explicitly states that an outsourcing company must be a legal entity in the form of a limited liability company.

He argued that the form of an outsourcing company should not be restricted to a limited liability company, because there are other forms of legal entities, such as cooperatives.

He also highlighted that Article 17 (3) of the Regulation limits business activities that may be outsourced to five activities, including janitor/cleaning services, catering services, security, oil and mining supporting activities, and labor transport services.

Darmanto insisted that outsourcing should be allowed for other business activities. He also stated that the Regulation was drafted without involving stakeholders.

“We want the Regulation to be declared as contradicting other laws and regulations,” he said in a press conference at Kadin’s office on Thursday (28/2).

Wisnu Wibowo, Chairman of Abadi, explained that businesses requested a judicial review because the Regulation has caused considerable losses for many parties, including laborers.

“The request for judicial review was submitted with a hope that it will assist in maintaining business climate, harmonize industrial relationships, and prevent massive layoffs,” Wisnu stated.

Meanwhile, Hasanudin Rachman, member of Kadin and Chairman of Industrial Relations and Advocacy at Apindo’s National Executive Council, argued that the Regulation was hastily drafted and issued without considering the input from the National Tripartite Cooperation Body (LKS Tripnas).

However, Ruslan Irianto Simbolon, Director General of Industrial Relations Development and Social Security at the Ministry of Manpower and Transmigration, stated that the Government has done its’ best effort to accommodate every stakeholder’s interest in the Regulation.

“We have invited every stakeholder in drafting and discussing the Regulation,” he informed in conclusion to hukumonline via telephone, Thursday (28/2).

(jt)

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