by Setyawati Fitrianggraeni and Tiara Amanda Putri
Overview
The Government issued Minister of Manpower Regulation or Peraturan Menteri Ketenagakerjaan (Permenaker) No. 7 of 2026 on Outsourcing on 30 April 2026, as a follow-up to Constitutional Court Decision No. 168/PUU-XXI/2023.(1) The regulation revokes the broad outsourcing provisions previously allowed under Government Regulation No. 35 of 2021 and reinstates outsourcing limitations to supporting activities in order to align with the Manpower Law.(2) The issuance of this regulation aims to address the legal gap following the Constitutional Court ruling, while also providing legal certainty for businesses and stronger protection for outsourced workers in Indonesia.(3)The implementation of this regulation is also supported by labor inspection mechanisms and administrative sanctions for violations related to the permitted types of outsourced work.(1)
Key Highlights
- Restrictions on Outsourced Work Categories and Scope
Permenaker 7/2026 limits outsourcing activities to six supporting service areas: cleaning, catering, security, transportation, operational support services, and support services in the mining, oil & gas, and electricity sectors. The regulation applies to both client companies and outsourcing service providers, with implementation carried out through written outsourcing agreements that ensure outsourced work remains outside the core production process and within the permitted scope under the regulation.(1)
- Protection of Statutory Rights and Worker Protection Responsibilities
Permenaker 7/2026 guarantees outsourced workers’ statutory rights, including wages, overtime pay, working hours, leave, occupational safety, social security, holiday allowances, and termination benefits.(3) Outsourcing companies are primarily responsible for fulfilling these rights, while client companies must ensure compliance with labor regulations. These obligations must be clearly stipulated in both employment agreements and outsourcing service contracts as part of the companies’ legal and moral responsibilities.(1)
- Registration of Outsourcing Agreements and Administrative Sanctions
The regulation requires all outsourcing agreements to be officially registered and imposes administrative sanctions for violations of the restrictions on permitted outsourced work categories.(4) Outsourcing companies are required to register outsourcing agreements with the local manpower office, while sanctions apply to client companies that outsource work beyond the six permitted categories. Registration must be completed within three working days after the agreement is signed, and enforcement is carried out through staged administrative sanctions ranging from written warnings to business activity restrictions based on recommendations from labor inspectors.(1)
References
1. Minister of Manpower Regulation of the Republic of Indonesia Number 7 of 2026 on Outsourced Work (Peraturan Menteri Ketenagakerjaan Republik Indonesia Nomor 7 Tahun 2026 tentang Pekerjaan Alih Daya).
2. Yansen A. Analisis Yuridis-Normatif Permenaker 7/2026: Harmonisasi Regulasi dan Perlindungan Hak Pekerja. Mount Hope Economic Journal (MEGA). 2026 May 16;4(1):58–65. Available from: https://journal.bukitpengharapan.ac.id/index.php/MEGA/article/view/1104
3. Ibrahim RA. BBC News Indonesia. 2026. Bidang ‘Layanan Penunjang Operasional’ Dalam Peraturan Baru Tenaga Kerja Outsourcing Disebut Multitafsir – ‘Ini Bisa Jadi Celah Hukum.’ Available from: https://www.bbc.com/indonesia/articles/c3w2env1e9lo
4. Koran Perdjoeangan. 2026. Permenaker Nomor 7 Tahun 2026 Terdapat Pasal Yang Membuat Pemilik Perusahaan Alih Daya Dapat Lepas Dari Tanggung Jawab. Available from: https://www.koranperdjoeangan.com/permenaker-nomor-7-tahun-2026-terdapat-pasal-yang-membuat-pemilik-perusahaan-alih-daya-dapat-lepas-dari-tanggung-jawab/
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