Permenaker No. 7 of 2026: What Companies Need to Know About Outsourcing
A summary of Permenaker No. 7 of 2026 on outsourced work—permitted categories, employer obligations, and the transition period companies should prepare for.
On 30 April 2026—one day before International Labour Day—the Minister of Manpower signed Ministerial Regulation (Permenaker) No. 7 of 2026 on Outsourced Work. The regulation implements Constitutional Court Decision No. 168/PUU-XXI/2023, which required the Indonesian government to place tighter limits on the outsourcing system.
Background
The Constitutional Court ruling found that overly broad outsourcing practices risked undermining worker rights. Permenaker No. 7/2026 operationalizes that decision with concrete limits: outsourcing is permitted only for supporting activities, not for a user company's core business functions.
Permitted categories
The regulation restricts outsourcing to six supporting service categories:
- Cleaning services
- Food and beverage provision (catering)
- Security services
- Driver and employee transportation services
- General operational support services
- Supporting work in the mining sector
Obligations of outsourcing providers
Outsourcing companies must fulfill all statutory rights of placed workers, including:
- Wages and religious holiday allowances (THR)
- Overtime pay and working hour rules
- Annual leave and rest entitlements
- Occupational health and safety (K3)
- Social security registration and contributions (BPJS)
- Rights related to employment termination
Responsibilities of user companies
Outsourcing arrangements must be formalized through a written agreement between the user company and the provider. The user company shares responsibility for ensuring outsourced workers' rights and protections are met—including monitoring provider compliance.
Transition period and what to prepare
The regulation grants a transition period of up to two years from the date it takes effect. Companies currently outsourcing roles outside the six permitted categories will need to reassess—either moving to direct employment or restructuring agreements with their providers.
- Audit currently outsourced positions: do they fall within a permitted category?
- Review provider contracts and ensure worker-rights clauses are explicit.
- Engage legal or employment consultants to plan a compliant transition.
This article is informational and not a substitute for legal advice. For specific compliance decisions, involve an employment lawyer and review the official text of Permenaker No. 7/2026.
PT Sigma Solusi Servis operates in workforce supply and BPO services that fall within categories permitted under this regulation. Discuss your outsourcing needs with us to ensure your arrangement remains compliant and professionally managed.