Minister of Manpower and Transmigration, Erman Soeparno, said that the provision about outsourcing (sub-contract) workers in the Manpower Decree No. 13/2003 must be reviewed because it causes workers and laborers to suffer losses. The Article does not regulate the provision that a new company must extend the laborers’ contract after two years time.

“Many of the laborers’ contracts were not resumed and in the end they lost the job,” said Erman during an official visit to Pulogadung industrial zone, yesterday (30/4).


He said the Manpower Decree should have regulated the sanction for companies that do not extend the laborers’ contracts. “So that companies do not act arbitrarily,” he said.

In addition, the law must not regulate a company’s obligation to establish workers as permanent employees after the two-year contract term is due. As a result, companies often do not resume the contract.

Head of the Indonesian Prosperous Trade Union Confederation, Rekson Silaban, agreed that the provision on outsourcing contracts is reviewed. The Decree No. 13/2003, he said, still needs many Government Regulations. “There hasn’t yet been the detailed regulation, including about the companies’ reserves funds,” he said.

He also asked that the regulation on Workers’ Social Security be revised, especially the policy of unemployment and severance pay. In addition, the government needs to guarantee the use of the industrial relations court.

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