Thursday, 24 January 2013


Mass worker demonstration on Wednesday (10/3/2012) leaves controversy. Workers’ demand for removal of outsourcing system has stimulated a lengthy debate. Outsourcing system van cause suffering to workers, yet it can become a support to the company. The business community considers that workers have had a misinterpretation of the outsourcing system. Outsourcing is a subcontracting system where the company assigns work to another company.

General Chairman of Indonesian Entrepreneurs Association (Apindo), Sofjan Wanandi, in Jakarta on Friday (10/5/2012), explained that the government needs not review the outsourcing system, especially regulation on companies that provide outsourced workers. Every time there is worker demonstration or strike, the company is always the one to be fact, companies treat outsourced workers and their permanent equally, in terms of regional minimum wage (UMR) payment and workers’ welfare.

But, Sofjan admitted that he did not know if, in practice, the outsourcing system is implemented in violation with the law. Violation occurs when salary is ability of allowance, unavailability of workers insurance, and non-fulfillment of basic right such as social security. Yet, however, he did not blame anyone for this, and he suggested that there should be a tripartite meeting between government, entrepreneur, and workers in finding a solution to workers’ demand which frequently ends in demonstration and mass strike.

As a result of frequent worker demonstration, foreign companies are unwilling to invest in Indonesia, or they might leave this country. And, companies will choose to use machines rather than humans, which will cause un employment. “If this condition is left like this, losses will be experienced by all parties involved” he said

On the other hand, it is impossible for the government to remove the outsourcing system as this system is legal and is allowed by the law. Yet, the government will not tolerate outsourcing companies who make workers to suffer more and become poorer. Spokesperson of the Ministry of Labor and Transmigration, Dita Indah Sari, explained that outsourcing is a recruitment system which is allowed by Law No. 13/2003 on Manpower. “It is impossible for us to remove something which are in violation with the law”, Dita said.

She explained that her party has asked regional heads to discipline outsourcing system for core job types or which are not in accordance with Manpower Law. According to her, removal of outsourcing system for core jobs shall be done gradually until finally outsourcing system will only be allowed for additional jobs. She added that outsourcing shall only be allowed for five types of jobs, among other things, security officers, mining workers, cleaning service of officers, catering and transportation service officers. For these types of jobs, direct work relationship between employer and worker shall be applied.

Dita considers that regulation improvement becomes a crucial matter because the government is in line with workers. The government never tolerates outsourcing implementation which causes suffering to workers. The government never tolerates outsourcing implementation which makes workers to become poorer and to suffer more. Such an outsourcing company is not allowed to operate. According to her, it should be done by tightening of the institutional aspect and administration of operational license of the outsourcing company concerned, and types of jobs allowed to be outsourced, “So far, one of the sources of problem is whether the job types are supportive or unsupportive”. She said

Business News - October 10, 2012

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