Outsourcing and Layoff Rules Enter the Main Focus of the Manpower Bill
JAKARTA - Commission IX of the Indonesian House of Representatives (DPR RI) ensures that arrangements regarding the outsourcing work system and termination of employment (PHK) are the main focus in discussing the Manpower Bill (RUU). The new regulation is expected to provide legal certainty while balancing the interests of workers and the business world.
This was conveyed by Member of Commission IX of the Indonesian House of Representatives, Irma Suryani Chaniago, after the Working Committee (Panja) meeting for the Employment Bill at the Parliament Complex, Senayan, Jakarta, Tuesday, July 28.
According to Irma, the discussion not only focuses on the outsourcing system, but also accommodates various inputs from trade unions and employers so that the regulations produced have legal certainty and do not become the object of material testing at the Constitutional Court.
"Of course, outsourcing. A lot. In fact, the main focus is certainly what the union friends and business friends say. Regarding how this law will be after it is enacted, it does not enter judicial review," said Irma.
He said the Manpower Bill Committee was still perfecting various substances before entering the stage of discussing article by article. Therefore, the solution regarding the regulation of outsourcing and the mechanism of layoffs has not been decided.
According to Irma, all provisions will be formulated comprehensively by involving the government, trade unions, and business circles to produce regulations that are fair to all parties.
"So this law cannot be winged, then it must be a win-win solution in order to create jobs," he said.
In addition to creating a conducive investment and business climate, the DPR also wants to ensure that the new rules are able to reduce the number of layoffs. If layoffs cannot be avoided, workers must still receive adequate protection in accordance with applicable regulations.
Irma added that the discussion of the bill would also include various other employment issues, including the mechanism for handling corporate bankruptcy.
"Then also overcome how not to have layoffs, and if there are layoffs, it will not harm workers. Then bankruptcy and so on, we will summarize everything into one. We have inventoried everything," he said.
Commission IX of the DPR targets that the discussion of the Employment Bill can be accelerated after the Panja process is completed. The target is that the regulation will be completed before being enacted into law in October 2026.
Irma explained that the DPR had prepared an academic script as a basis for the preparation of the bill. Various inputs from academics, the government, labor unions, and the Indonesian Employers Association (Apindo) have also been collected as materials for improvement.
"We do ask for time to be able to work on this committee during the recess. Because this law must be completed in October," he said.