Implementing Outsourcing in Indonesia Labor Law Perfective

Phenomena comes up nowadays regarding outsourcing service is spreading and managing labor conflict exposure or risk in employee site but in other hand employees also feel no certainty before the law in Indonesia. Involving the third party outsourcing service is one of solution also the sign of shifting paradigm in risk management for human resources management.

Employee’s thought with transferring labor exposure to outsourcing service can create very positive impact in working environment such as leveraging effectiveness, efficiency and productive and finally impacting company profit and increasing value of company. Other issue off course employee no needs to spend sink cost of labor conflicts in future. Those thought above in line with human resources operational function such as development, training, retaining & maintaining, remuneration package and lay off program.

In labor site, mostly they feel not well about oursourcing, because in their thought there is no equal position among parties before the law. As reference website www.detik.com wrote one electronic factory in Cikampek, West Java, laid off 500 employers with the reason those employers abusing working time for other personal purposes, and next the company empower outsourcing service for some rutines operation. It indicates employee not price the employers as assets in the whole total business activities.

Accordance in Law No. 13 Year 2003 about man power in chapter 64 to 65, very clear explaining and arranging the outsourcing matters hence, it must be more positive impact comes from outsourcing. How to implement outsourcing based on Law in Indonesia and beneficial for parties is going to be dig up in this essay. Having win-win solution among parties employee, employers, government and society should be in detail stipulated in service level agreement such as constrains, key performance indicators, contingency plan and service level guarantee. Hopefully this essay can be the trigger to see outsourcing as solution to have batter man power environment.