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Home  >>   Daily News  >>   Indonesia News  >>   Labor  >>   Indonesian minister wants to end outsourcing
NEWS UPDATES Asean Affairs  15 October 2010

Indonesian minister wants to end outsourcing

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The minister of manpower on Thursday vowed to "eventually" abolish labor outsourcing, starting with restrictions on the scope of the practice.

"I myself will issue a ministerial regulation to restrict outsourcing," Muhaimin Iskandar said in Surabaya. "First I will reduce it, then eventually it will disappear."

In Indonesia, outsourcing refers to the hiring of workers on a contractual basis, often through a provider company. The workers are usually hired on short-term contracts and paid a daily wage, without benefits.

According to Muhaimin, companies generally did not outsource core jobs, only peripheral work like cleaning and security.

During May Day protests this year, labor groups called on the government to abolish the practice of outsourcing.

Following a violent clash between Indonesian and foreign workers in Batam in April, Muhaimin pledged to better protect the rights of outsourced workers, including more surveillance of working conditions, ensuring salaries were paid and contracts enforced, as well as clearly defining what types of jobs could be outsourced.

Muhaimin's statement on Thursday, however, was met with skepticism by both workers and employers.

Sofyan Wanandi, head of the Indonesian Employers Association (Apindo), said while he believed the government was working toward putting an end to outsourcing by the end of next year, he questioned whether Muhaimin had the authority to do so alone.

Sofyan said the Indonesian Institute of Sciences (LIPI) was currently studying outsourcing and was scheduled to release its findings next month. After that, he said, LIPI, labor associations and the government would sit down and discuss how to proceed.

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