Many companies still believe that outsourcing can be used for any job as long as there is a service provider. Since April 30, 2026, this assumption is no longer in line with regulations. The Minister of Manpower Regulation Number 7 of 2026 concerning Outsourcing Work establishes a closed list: only six types of supporting jobs are allowed to be outsourced. This article summarizes the figures, deadlines, and sanctions in a scannable format.
Six types of permitted jobs
Article 3 paragraph (2) states that outsourcing work takes the form of providing labor services for the following supporting activities:
- cleaning services;
- provision of food and beverages;
- security;
- provision of drivers and transportation for workers;
- operational support services;
- supporting work in the fields of mining, oil, gas, and electricity.
Outside of these six fields, employers risk facing sanctions under Article 8.
Important figures and deadlines
| Provision | Figure | Basis |
|---|---|---|
| Effective from | April 30, 2026 (date of enactment) | Article 11 |
| Registration of outsourcing agreements with the local manpower office | no later than 3 working days after the agreement is signed by all parties | Article 5 |
| Outsourcing companies must start operating | within 1 year from the issuance of the business license | Article 6 |
| Adjustment of ongoing job types | no later than 2 years from the date of enactment | Article 10 |
| Old agreements | remain valid until their expiration | Article 10 |
Calculated from the date of enactment, the two-year deadline falls on April 30, 2028. This date is a simple calculation based on the wording of the article, not a number written in the text.
Minimum content of outsourcing agreements
Article 4 paragraph (1) requires a written agreement between the employer and the outsourcing company to include at least: the outsourced work, duration, work location, number of workers, protection and rights of workers, as well as the rights and obligations of both companies. The protection section includes wages, overtime pay, working and rest hours, annual leave, occupational safety and health (K3), social security, holiday allowances, and rights upon termination of employment.
Responsibilities are divided into two layers. The outsourcing company is responsible for fulfilling these protections at least to the extent stipulated by legislation (Article 4 paragraph (2)). The employer must ensure that this is fulfilled (Article 4 paragraph (3)). Therefore, handing over all matters to the provider does not relieve the employer from the obligation to verify.
Gradual sanctions
Employers who violate Article 3 are subject to administrative sanctions in stages: written warnings, followed by restrictions on business activities. These restrictions may include limitations on production capacity for a certain period and/or delays in business licensing at one or several locations. Sanctions are imposed by the authority that issues the licenses, based on recommendations from labor inspectors (Article 8). Outsourcing companies that violate Article 6 are subject to sanctions according to risk-based business licensing provisions (Article 9).
What is not covered here
The text of Minister of Manpower Regulation 7/2026 does not contain a revocation clause and does not regulate the types of employment contracts. Regarding the employment relationship of outsourced workers (PKWT or PKWTT, written, and the transfer of protection rights if the provider changes while the work object still exists), references are available in Articles 18 and 19 of Government Regulation 35 of 2021 in the copy available at JDIH Kemnaker. Check the latest status of both texts before drafting or reviewing contracts.
On June 18, 2026, the Minister of Manpower stated that his ministry is open to reviewing this regulation if there are proposals, without an official revision announcement. Therefore, note the date you accessed the text.
If you prefer to see an explanation of the differences between PKWT, PKWTT, and outsourcing verbally, there is a short class clip. For the implications of PKWT contracts that change status, see also four triggers for PKWT to become PKWTT.
Sources
- Minister of Manpower Regulation Number 7 of 2026 concerning Outsourcing Work (text, JDIH Kemnaker)
- Minister of Manpower Regulation No. 7 of 2026, BN 2026 (281) (JDIH BPK)
- Government Regulation 35 of 2021 (copy, JDIH Kemnaker)
- Latest Minister of Manpower Regulation Governs 6 Types of Supporting Jobs (Hukumonline)
- Tightening Outsourcing Supervision Considered More Urgent Than New Regulations (Bisnis.com, June 19, 2026)