National scene: Government to ban outsourcing

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Denpasar: Manpower and Transmigration Minister Muhaimin Iskandar says that the government will issue a new regulation abolishing labor outsourcing by the end of October.

“The regulation will be issued as soon as possible ... No later than the end of October,” Muhaimin said here on Tuesday.

The announcement came after huge labor strikes halted production at several industrial parks in cities throughout the country.

According to Muhaimin, the regulation will proscribe business from outsourcing employees in their core business unit, Antara news agency reported.

Outsourcing would only be permitted for supporting jobs, such as security guards, janitors and food service employees, among other jobs, he said.

“Companies will be given time to adjust to the regulation. I hope in the transition period ther e will be no layoffs,” Muhaimin said on the sidelines of the annual meeting of Asian Productivity Organization (APO) in Denpasar, Bali.