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Jakarta Post

Outsourcing policy in doubt

  • Ridwan Max Sijabat and Andreas D. Arditya

    The Jakarta Post

Jakarta   /   Fri, November 9 2012   /  11:43 am

The Manpower and Transmigration Ministry has postponed issuing a controversial revised decree on labor outsourcing after unions and businesses failed to reach a compromise on several sticking points.

Manpower and Transmigration Minister, and chairman of the National Awakening Party (PKB) Muhaimin Iskandar said on Thursday that he had suspended the planned revision indefinitely until a compromise was reached.

The revised decree was previously scheduled to be issued on Nov. 2.

“We hope the conflicting parties will reach an agreement on two crucial issues so the decree can be signed,” Muhaimin said.

The issues include jobs that may be outsourced and the implementation period of the decree.

A revision to the decree was drafted after the government bowed to pressure from unions following major rallies in the past couple of months in several industrial...