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Jakarta Post

Govt to clamp down on outsourcing

  • Linda Yulisman

    The Jakarta Post

Jakarta   /   Tue, October 9 2012   /  09:47 am

The government has decided on the heels of last week’s labor protests to impose tighter restrictions on the employment of workers through outsourcing.

Speaking at a hearing with lawmakers on Monday, Irianto Simbolon, the director general for industrial relations and social security affairs, said a planned revision to existing regulations would ban outsourcing companies from hiring workers on a contract basis.

“Outsourced workers must be employed permanently by the company that provides the outsourcing service,” Irianto said.

He added that the revision would also require outsourcing companies to give their employees holiday bonuses, 12 days annual leave and health insurance.

Better monitoring of outsourcing companies should also emerge from the revision as the government plans to reduce the business-permit renewal period for this type of service from five...