In Indonesia informal workers make up nearly 75% of total employment and, for most, the concept of company culture is something that never seems to apply to them.
Without formal employers or consistent policies, concepts like values, belonging, and employee experience are often out of reach. That structural reality makes the Minister of Manpower’s latest outsourcing regulation, which came into effect on 30 April, more than just a legal update, but also a reset of where responsibility for workers begins and ends.
The regulation narrows outsourcing to clearly defined non-core activities such as cleaning, catering, security, transport, and select technical services. Roles tied directly to a company’s core business can no longer be outsourced, they must sit within the organization, under its leadership, policies, and culture.
Why this is more than a legal clean‑up
On paper, the changes are about compliance and liability. In practice, they raise real questions for employers around how company values are extend to everyone working inside a building and not just those on the permanent payroll. For HR teams, the biggest questions are about how these changes will show up in trust, retention, and your employer brand.
User companies now share explicit responsibility for making sure outsourced workers receive wages, overtime, social security, leave, religious holiday allowance (THR), and occupational safety protections that match legal standards. Authorities and the public can look through the vendor and ask why people on your site are not being treated fairly.
Great Place To Work research in Southeast Asia shows that high‑trust workplaces see much stronger intent to stay and advocacy from employees than typical workplaces. If cleaners, security staff, and drivers on your site are treated poorly, your permanent employees notice, and their trust in leadership falls even if their own contracts look fine.
When an employee walks into the office, they will likely meet security, reception, cleaning, and canteen staff before they see anyone from HR. That means outsourced workers strongly influence the daily experience and emotional tone of your workplace. When these people feel respected and included in basic communications and safety routines, it signals care, consistency and responsibility.
On paper, these workers are employees of a provider, but in practice they carry your logo on their uniform or badge and work under your supervisors’ instructions. For many candidates and customers, they are the face of your brand.
Do your culture rituals include outsourced workers on site?
So many companies have strong family‑style language in their values but treat outsourced staff separately. The regulation does not force you to invite outsourced workers to every town hall or learning session, but your choices here speak volumes. Quick wins you to integrate could include:
Include outsourced staff in safety briefings, emergency drills, and key health campaigns
Invite them to relevant site celebrations or recognition moments.
Make it clear that line managers must apply the same respect and anti‑harassment. standards regardless of who signs the payslip. When Great Place To Work surveys employees, questions on fairness and respect are some of the strongest predictors of overall trust.
How Great Place To Work Indonesia can support you
If your leadership team is unsure how employees currently see your treatment of outsourced workers, the fastest way to get clarity is to listen at scale. The Trust Index™ survey used for Great Place To Work Certification™ in Indonesia gives you anonymous feedback on respect, fairness, and psychological safety across your workforce.
Many Certified companies then use these insights to redesign policies and daily practices so that contractors, outsourced staff, and temporary workers experience more consistent treatment.
If you are reviewing your outsourcing structures now, pairing a legal review with a culture diagnosis helps you avoid changes that look compliant but still feel unfair on the ground. Culture data shows where trust is already fragile, so you can design communication and transition plans that keep people informed instead.
FAQs: Indonesia outsourcing regulation 2026
What is Indonesia’s 2026 outsourcing regulation?
It is Minister of Manpower Regulation No. 7 of 2026, which tightens rules on outsourcing in Indonesia. It brings back a positive list of jobs that can be outsourced and clarifies joint responsibility between providers and user companies for worker protections, including wages, benefits, social security, and safety.
Which jobs can still be outsourced under the new rules?
Companies can outsource supporting activities such as cleaning, catering services, security, drivers and transportation, and certain operational support functions in sectors like mining, oil and gas, and electricity. Core business activities should stay under direct employment, so HR teams need to map current outsourced roles to the permitted categories.
How does the outsourcing regulation affect HR in Indonesia?
HR must review existing outsourcing contracts, reclassify roles that no longer fit the positive list, and ensure providers meet all obligations for wages, social security, leave, and THR. HR also needs to consider how outsourced workers are treated on site, because employees judge fairness and leadership credibility based on that daily experience.
What happens if outsourced workers do not get their rights?
If vendors fail to pay wages or provide required benefits, user companies may still face legal and reputational consequences because the regulation emphasizes shared responsibility. Authorities, unions, and employees can hold the main company accountable, especially when work is performed on its premises or under its direction.
How can companies align outsourcing with being a great place to work?
Start by checking that only permitted supporting activities are outsourced and that contracts clearly protect workers. Then include outsourced staff in safety, communication, and recognition where possible, and use tools like the Great Place To Work Trust Index™ survey to track perceptions of fairness and respect across your workforce.
