Outsourcing System in Labor Recruitment Will Be Abolished

Outsourcing System in Labor Recruitment Will Be Abolished


Labor Minister Muhaimin Iskandar said a new regulation will be issued by the end of this month abolishing outsourcing system of labor recruitment.

“The regulation will be issued as soon as possible ; not later than by the end of October,” Muhaimin said here.

The announcement came after repeated big labor strikes over the past month in the country

Labor unions have staged nation wide protest badly interrupting the process of production in industrial centers.

Muhaimin said on the sidelines of the annual meeting of Asian Productivity Organization(APO) here, outsourcing system could no longer be used for core business workers.

The system could be used only for supporting jobs like security, cleaning service, catering and other non core jobs, he said.

“Companies will be given time to adjust to the regulation and I hope in the process of transitional time no workers need to be laid off,” he said.

Meanwhile, Indonesia is hosting a meeting of chiefs of Asian Productivity Organizations (APO) opened by manpower minister Muhaimin Iskandar here.

“The meeting this time would discuss finalization of APO program for 2013 and strategic plans for 2014-2015,” the director general of training and productivity of the ministry of manpower, Abdul Wahab said.

The annual meeting that will last from October 23 to 25 was attended by 60 delegations from 20 APO member countries namely Bangladesh, Cambodia, China, Fiji, Hong Kong, India, Indonesia, Iran, Japan, Korea, Laos, Malaysia, Mongolia, Nepal, Pakistan, the Philippines, Singapore, Sri Lanka, Thailand and Vietnam as well as observers from APO and non-APO member countries.

The Indonesian delegation to the meeting consists of officials from the ministry of manpower, the ministry of agriculture and the ministry of foreign affairs.

Abdul Wahab said APO is an inter-governmental regional organization aimed at contributing to social and economic development in the Asia Pacific through productivity development.

“The aim of the international seminar this time is to finalize the APO programs for 2013 and discuss 0strategic plans for 2014-2015, the results of which would be further discussed and legitimized at the 55th APO’s Governing Body Meeting in 2013,” he said.

Abdul Wahab said in Indonesia the commitment to the need to increase productivity has been put in the mid-term 2009-2014 program especially in the people’s welfare and economic development agenda.

“To support achievement of development goals the government has included quality and productivity improvement as one of the four priorities whose implementation is done in the national productivity movement,” he said.

Abdul Wahab said Indonesia’s participation in the APO would help the country take examples, adopt and develop programs, concepts, techniques and methods of productivity improvement.

So far, he said, Indonesia has participated in APO programs and activities involving various government and private organizations, businesses, universities, workers and non-governmental organizations so that productivity has been well known in various circles.

The involvement has been realized in the implementation of strategies and policies as well as methods and techniques of productivity improvement in various circles in Indonesia to improve the performance of government, university or private organizations.

Indonesia has been an APO member since 1968 and has taken various benefit from it such as productivity improvement in various sectors such as tourism, agriculture, construction, energy and mineral resource sectors.


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