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Jobs Perppu: Employers deem outsourcing restrictions ‘counterproductive’
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Labor on the streets: Workers participate in a May Day rally in Jakarta on Tuesday. They demanded a raise in the minimum wage and the abolition of outsourcing. (JP/Seto Wardhana)
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usinesses have expressed their disagreement with the new outsourcing policy stipulated in the recently issued government regulation in lieu of law (Perppu) on job creation.
During a press briefing held on Tuesday, Indonesian Employers Association (Apindo) chairperson Hariyadi Sukamdani said that the outsourcing restrictions introduced by the government were “counterproductive” to efforts to take advantage of the so-called “demographic bonus”.
According to the new rules, outsourcing is limited to only “parts” of a company’s operational work, with further details to be laid out within government regulation (PP) derivatives.
This move is seen as contradictory to the previous Job Creation Law, in which the government deregulated outsourcing affairs and left its arrangement to private sector contracts.
“Our view is that this [policy] is not optimal because Indonesia needs a huge job market,” Hariyadi told reporters.
Read also: Job creation Perppu may shrink labor market: Businesses
Hariyadi explained that outsourcing was needed for intermediary purposes, where unskilled workers needed to go through outsourcing industries before getting better work.
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