Suryo Bambang Sulisto, Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), explains in a Jakarta Globe op-ed what he calls labor’s “misperceptions” regarding outsourcing:
Outsourcing is not a new concept. In fact, it is a trendier, more modern term for sub-contracting, which has been part of the business landscape for more than half a century. But listening to the raging debate here at home, especially from labor unions, one would think that outsourcing is a grave threat to workers and the Indonesian economy.
Even senior cabinet ministers have recently spoken out against outsourcing and the government is now mulling new regulations to restrict outsourcing to just a few sectors such as catering, security and cleaning services.
This perception could not be further from the truth. Outsourcing is part and parcel of today’s globalized economy. Rather than seeking to limit it or even kill it, the government and the labor unions should instead be championing outsourcing as another pillar of the Indonesian economy.