Government issues new rules limiting outsourcing

Labor Minister Yassierli has issued Permenaker No. 7 of 2026 on Outsourcing Work. The rules restrict contract worker recruitment to specific sectors to protect employees. The regulation was released ahead of Labor Day on May 1, 2026.

Permenaker No. 7 of 2026 follows the Constitutional Court Decision No. 168/PUU-XXI/2023, which mandated restrictions on outsourcing work. Yassierli stated, "This Permenaker is a follow-up to the Constitutional Court Decision No. 168/PUU-XXI/2023 which mandates restrictions on outsourcing work."

The rules limit outsourcing to cleaning services, food and beverage provision, security, driver and worker transport services, operational support services, and support work in mining, oil and gas, and electricity sectors.

User companies must have written agreements specifying the type of work, duration, location, number of workers, work protection, and rights and obligations of parties. Outsourcing firms must fulfill worker rights including wages, overtime, leave, occupational safety and health (K3), social security, religious holiday allowances, and layoff rights.

Yassierli added, "Through this Permenaker, the government reaffirms its commitment to promoting harmonious, transformative, and just industrial relations with the spirit of advancing industry and prosperous workers." The regulation includes sanctions for violations and calls on stakeholders to comply responsibly.

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Illustration depicting private firms' employees working remotely on chosen WFH days under new energy-saving policy.
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