AGO Delivers Its Opinion on Outsourcing Practices by State-Owned Companies

 
Ady Thea DA, Christina Desy
 
Outsourcing practices, according to the Labor Law, are only permit for auxiliary services. In other words, employment that is categorized as core business, may not be outsourced to third parties. Despite this prohibition, many state-owned companies (“BUMN”) still practice outsourcing activities which are on one view in breach of law and put the welfare of outsourced employees at stake.
 
To deal with this issue, Commission IX of the House of Representatives (“Commission IX”) took the initiative of organizing a meeting with the Attorney General Office (AGO) to obtain the AGO’s legal opinion on the outsourcing practices of BUMN.
 
Representing the AGO, Bambang Setyo Wahyudi, Secretary of the Deputy Attorney General for Civil and Administrative Court Cases (Sekretaris Jaksa Agung Muda Perdata dan Tata Usaha Negara – Sesjamdatun), stated that there is no restriction under the current law for BUMN to appoint outsourced employees.
 
Such appointments, however, must be based on law for which the Minister for BUMN must issue a regulation with guidelines for the directors of BUMN to implement such appointments. Furthermore, appointments must be in the form of decree issued by the BUMN directors.
 
Herman Hidayat, Expert Staff at the Ministry of BUMN, asserted the importance of the AGO’s opinion as a legal basis for conducting appointments. Sharing this view, Eddy D. Erningpranaja, Human Resources Director of Perusahaan Listrik Negara (PLN), said he intends to act on this issue immediately.
 
For that purpose, Mr. Erningpranaja anticipates further coordination with the Ministry of BUMN and Ministry of Manpower and Transmigration, as well as a written statement from the Deputy Attorney General for Civil and Administrative Court Cases.
 
Based on the AGO’s opinion, Ribka Tjiptaning, Chairman of Commission IX, recommended to start gradually appointing outsourced employees as permanent employees starting 15 September until 30 September 2014.
 
The list of outsourced employees will be based on data from the Monitoring Task Force for the Implementation of BUMN Outsourcing Policy. Regarding this development, Muchtar Luthfi, Director General of Manpower Development and Supervision, says he is looking forward to the implementation of this policy.
 
(hot/kc)
 
Ady Thea DA, Christina Desy
 
Outsourcing practices, according to the Labor Law, are only permit for auxiliary services. In other words, employment that is categorized as core business, may not be outsourced to third parties. Despite this prohibition, many state-owned companies (“BUMN”) still practice outsourcing activities which are on one view in breach of law and put the welfare of outsourced employees at stake.
 
To deal with this issue, Commission IX of the House of Representatives (“Commission IX”) took the initiative of organizing a meeting with the Attorney General Office (AGO) to obtain the AGO’s legal opinion on the outsourcing practices of BUMN.
 
Representing the AGO, Bambang Setyo Wahyudi, Secretary of the Deputy Attorney General for Civil and Administrative Court Cases (Sekretaris Jaksa Agung Muda Perdata dan Tata Usaha Negara – Sesjamdatun), stated that there is no restriction under the current law for BUMN to appoint outsourced employees.
 
Such appointments, however, must be based on law for which the Minister for BUMN must issue a regulation with guidelines for the directors of BUMN to implement such appointments. Furthermore, appointments must be in the form of decree issued by the BUMN directors.
 
Herman Hidayat, Expert Staff at the Ministry of BUMN, asserted the importance of the AGO’s opinion as a legal basis for conducting appointments. Sharing this view, Eddy D. Erningpranaja, Human Resources Director of Perusahaan Listrik Negara (PLN), said he intends to act on this issue immediately.
 
For that purpose, Mr. Erningpranaja anticipates further coordination with the Ministry of BUMN and Ministry of Manpower and Transmigration, as well as a written statement from the Deputy Attorney General for Civil and Administrative Court Cases.
 
Based on the AGO’s opinion, Ribka Tjiptaning, Chairman of Commission IX, recommended to start gradually appointing outsourced employees as permanent employees starting 15 September until 30 September 2014.
 
The list of outsourced employees will be based on data from the Monitoring Task Force for the Implementation of BUMN Outsourcing Policy. Regarding this development, Muchtar Luthfi, Director General of Manpower Development and Supervision, says he is looking forward to the implementation of this policy.
 
(hot/kc)
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