Indonesia’s Constitutional Court Decisions on Outsourcing Scheme: Balancing Protection and Efficiency?
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Nov 5, 2023
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Abstract
This article explores the Indonesian Constitutional Court’s views through its decisions in shaping the practice of outsourcing in Indonesia based on the 1945 Constitution. The study was first conducted by analyzing Decision No. 012/PUU-I/2003 and later Decision No. 27/PUU-IX/2011. The novelty of this research is evident from the involvement of perspective in analyzing the outsourcing scheme in Indonesia as newly regulated in several laws, namely Job Creation Law and the Government Regulation in lieu of Job Creation Law. Using the normative legal research method, the authors used statutory, case, and conceptual approaches. Based on the research conducted, the authors found that the Constitutional Court aims to uphold the balance of companies’ efficiency and outsourced workers’ rights protection. The findings are evidenced by the Constitutional Court’s stance in a decision that implies that outsourcing is constitutional to enhance the State’s economy while simultaneously protecting the outsourced workers’ rights to ensure the fulfillment of their constitutional rights by setting two-fold models of protection. Therefore, even if new outsourcing scheme regulations are issued, the criterion of legality in future judicial reviews must involve determining whether such balance has been sufficiently met.
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Palguna, I. D. G., Nurjanah, I., Padmawati, N. K. T., Dananjaya, I. K., & Halmadiningrat, I. M. (2023). Indonesia’s Constitutional Court Decisions on Outsourcing Scheme: Balancing Protection and Efficiency?. Journal of Indonesian Legal Studies, 8(2), 405-452. https://doi.org/10.15294/jils.v8i2.66507
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Research Articles
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References
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Republic of Indonesia. The 1945 Constitution of the Republic of Indonesia.
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Roux, Theunis and Fritz Siregar, "Trajectories of Curial Power: The Rise, Fall and Partial Rehabilitation of the Indonesian Constitutional Court”, Australian Journal of Asian Law 16, no. 2 (2016): 1-21
Setiadi, Wicipto. “Dukungan Politik Dalam Implementasi Putusan Mahkamah Konstitusi”, Jurnal Rechtsvinding 2, no. 3 (2013): 295-313.
Sitinjak, Humala. “Legal Issues on Outsourcing Company with Its Employee in Getting High Salary at PT Tiara Gada Pratama, Medan, Indonesia”. Global Journal of Politics and Law Research 6, no. 2 (2018): 14-23. https://doi.org/10.37745/gjplr.2013
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Stockhammer, Engelbert. “Post-Keynesian Macroeconomic Foundations for Comparative Political Economy,” Politics & Society 50, no. 1 (2022): 158–159. https://doi.org/10.1177/00323292211006562.
Sulistiyono, Tri, Pratama Herlambang, Dwi Pangestu Khoirunisa, and Ahmad Zaharuddin Sani Ahmad Sabri. “Strengthening the Role of Community in Improving the Quality of The Manpower.” Indonesian Journal of Advocacy and Legal Services 4, no. 1 (2022): 123-140. https://doi.org/10.15294/ijals.v4i1.53366
Sulistiyono, Tri, Pratama Herlambang, Safari Chandra, Moch Fahmi Abdulaziz, and Nur Arissa Izzati binti Mohamad Roki. “Protection of Indonesian Migrant Workers in China: The Government’s Role and Legal Aspects”. Lex Scientia Law Review 6, no. 1 (2022): 93-120. https://doi.org/10.15294/lesrev.v6i1.55112
Sunaryo, Sidik. “The Philosophy of Social Injustice for All Indonesian Laborers Set Forth in Job Creation Law”. Legality: Jurnal Ilmiah Hukum 31, no. 1 (2023): 112-23. https://doi.org/10.22219/ljih.v31i1.25330
Suryomenggolo, Jafar, and Indah Saptorini. Kekuatan Sosial Serikat Buruh: Peraturan Baru dalam Perjuangan Menolak Outsourcing. (Jakarta: Trade Union Rights Center Jakarta, 2007).
Sutedi, Adrian. Hukum Perburuhan. (Jakarta: Sinar Grafika, 2011).
Tjandra, Surya. “Labor Law and Development in Indonesia”. Dissertation. (Leiden: Universiteit Leiden, 2016).
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Utomo, Nurrahman Aji. “Dinamika Hubungan Antara Pengujian Undang-Undang dengan Pembentukan Undang-Undang”. Jurnal Konstitusi 12, no. 4 (2015): 825-845. https://doi.org/10.31078/jk1248
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Wijayanti, Asri. “Rights to The Freedom of The Trade Unions in The Constitution and Its Implementation”. International Journal of Applied Business and Economic Research 15, no. 7 (2017): 107-115.
Yusriadi, Haedar Akib and Andi Ihsan. “Bureaucratic Reform in Public Service: A Case Study on the One Stop-Integrated Service”. Mediterranean Journal of Social Sciences 8, no. 2 (2017): 253-258. http://dx.doi.org/10.5901/mjss.2017.v8n2p253
Anggriani, Errika Putri. “Policy on Reducing Child Labor as the Elimination of the Worst Forms of Child Labor”. Unnes Law Journal 6, no. 1 (2020): 1-20. https://doi.org/10.15294/ulj.v6i1.8222
Arifin, Saru. “Human Rights and Business: Human Rights Violations in the Outsourcing Industry in Modern Business Indonesia”. Journal of Indonesian Legal Studies 6, no. 1 (2021): 35-52. https://doi.org/10.15294/jils.v6i1.45841
Budiartha, I Nyoman Putu. Hukum Outsourcing. (Malang: Setara Press, 2016).
De Souza, Filipe Augusto Silveira, Ana Heloisa Da Costa Lemos, and Pontifícia Universidade Católica do Rio de Janeiro, Brazil, “Terceirização e Resistência No Brasil: O Projeto de Lei n. 4.330/04 e a Ação Dos Atores Coletivos,” Cadernos EBAPE.BR 14, no. 4 (2016): 1035–1053, https://doi.org/10.1590/1679-395153863.
Druck, Graça, and Filgueiras V. "The outsourcing epidemic and the responsibility of the STF". Revista do TST 80 (2014): 106-125.
Druck, Graça. “Unrestrained Outsourcing in Brazil: More Precarization and Health Risks for Workers.” Cadernos de Saúde Pública 32, no. 6 (2016): 1-9. https://doi.org/10.1590/0102-311X00146315.
Felix, Mayara, and Michael B. Wong. "Labor market consequences of domestic outsourcing: Evidence from legalization in Brazil". Working Paper Institute Labor of Economics, 2021.
Fitriyaningrum, Julyatika. “Implementasi Sistem Alih Daya atau Outsourcing Dalam Mencapai Kesejahteraan Pekerja Indonesia Ditinjau dari Undang-Undang Nomor 13 Tahun 2003”, Indonesian State Law Review 2, no. 1 (2019): 322-335. https://doi.org/10.15294/islrev.v2i1.38448
Guarda, Graziela Ferreira, Edgard Costa Oliveira, and Rafael Timóteo De Sousa Júnior. “Analisys of IT Outsourcing Contracts at the TCU (Federal Court of Accounts) and of the Legislation That Governs These Contracts in the Brazilian Federal Public Administration.” Journal of Information Systems and Technology Management 12, no. 1 (2015): 81-106. https://doi.org/10.4301/S1807-17752015000100005
Harijanto, Andry, Siti Hatikasari, and Juliet Musabula. “The Model of Legal Protection for Children Victims of Domestic Violence Based on Justice.” Journal of Human Rights, Culture and Legal System 2, no. 2 (2022): 100-112. https://doi.org/10.53955/jhcls.v2i2.33
Hartmann, T. "Temporary Agency Work in Germany and the Netherlands". Thesis. (Tilburg: Tilburg University, 2012).
Hidayah, Nur Putri, Quincy R. Cloet, and David Pradhan. “The Implementation of Labor Development Principles According to Job Creation Law as a Reason to Protect Wages Rights". Bestuur 9, no. 1 (2021): 68-76. https://doi.org/10.20961/bestuur.v9i1.49252
Irawan, Andong Dony. “Status Hukum Outsourcing Pasca Putusan Mahkamah Konstitusi Perkara Nomor 27/PUU-IX/2011”. Arena Hukum 12, no. 2 (2019): 253-273. https://doi.org/10.21776/ub.arenahukum.2019.01202.3.
Izzati, Nabiyla Risfa. “Improving Outsourcing System in Indonesia: Fixing the Gap of Labor Regulation,” Mimbar Hukum 29, no. 3 (2018): 528-541 https://doi.org/10.22146/jmh.28372
Izzati, Nabiyla Risfa. “New Direction of Indonesian Migrant Workers Protection through the Law Number 18 of 2017 and Its Implementation Challenges”. Padjadjaran Jurnal Ilmu Hukum 6, no. 1 (2019): 190-210. https://doi.org/10.22304/pjih.v6n1.a10
Johan, Suwinto, and Luo Yuan Yuan. “What Does Financial Institution Termination of Employment Mean in Terms of Labor Law?”. Volksgeist: Jurnal Ilmu Hukum dan Konstitusi 6, no. 1 (2023): 49-59. https://doi.org/10.24090/volksgeist.v6i1.6372
Juliawan, Benny Hari. “Extracting Labor From Its Owner: Private Employment Agencies and Labor Market Flexibility in Indonesia”. Critical Asian Studies 42, no. 1. (2010): 25-52. https://doi.org/10.1080/14672710903537464
Mahy, Petra. “Indonesia’s Omnibus Law on Job Creation: Legal Hierarchy and Responses to Judicial Review in the Labor Cluster of Amendments.” Asian Journal of Comparative Law 17, no. 1 (2022): 51-75. https://doi.org/10.1017/asjcl.2022.7
Nathan, Alnick. “Omnibus Law dan Fleksibilitas Pasar Tenaga Kerja di Indonesia: Perspektif Makro-Ekonomi dan Ketenagakerjaan. INSIGHT 1, no. 9 (2019): 3-28.
Pambudi, Kukuh. “Quo Vadis Indonesian Labor Act: How Far the Protection for Labors?”, Journal of Law and Legal Reform 2, no. 1 (2021). 591-602. https://doi.org/10.15294/jllr.v2i4.48762
Republic of Indonesia. Constitutional Court Decision Number 012/PUU-I/2003. Available online at https://www.mkri.id/public/content/persidangan/risalah/risalah_sidang_9095_perkara%20012-puu-i-2003.pdf
Republic of Indonesia. Constitutional Court Decision Number 27/PUU-IX/2011. Available online at https://www.bphn.go.id/data/documents/putusan_27-puu-ix-2011_(ketenagakerjaan)(outsourcing).pdf
Republic of Indonesia. Law No. 13 of 2003 on Manpower (Indonesian Labor Law). Available online at https://jdih.kemnaker.go.id/asset/data_puue/UU_NO_13_Thn_2003.pdf
Republic of Indonesia. Law No. 6 of 2023 concerning Determination of Government Regulation in Lieu of Law Number 2 of 2022 concerning Job Creation into Law (Indonesian Job Creation Law).
Republic of Indonesia. The 1945 Constitution of the Republic of Indonesia.
Rodríguez, Juan Pablo, "The Politics of Neoliberalism in Latin America: Dynamics of Resilience and Contestation." Sociology Compass 15, No. 3 (2021): 1-31. https://doi.org/10.1111/soc4.12854
Roux, Theunis and Fritz Siregar, "Trajectories of Curial Power: The Rise, Fall and Partial Rehabilitation of the Indonesian Constitutional Court”, Australian Journal of Asian Law 16, no. 2 (2016): 1-21
Setiadi, Wicipto. “Dukungan Politik Dalam Implementasi Putusan Mahkamah Konstitusi”, Jurnal Rechtsvinding 2, no. 3 (2013): 295-313.
Sitinjak, Humala. “Legal Issues on Outsourcing Company with Its Employee in Getting High Salary at PT Tiara Gada Pratama, Medan, Indonesia”. Global Journal of Politics and Law Research 6, no. 2 (2018): 14-23. https://doi.org/10.37745/gjplr.2013
Sonhaji, Sonhaji. “Tinjauan Terhadap Kesejahteraan Pekerja Alih Daya di Perusahaan Perbankan”. Administrative Law and Governance Journal 4, no. 1 (2021): 38–50. https://doi.org/10.14710/alj.v4i1.38%20-%2050
Stockhammer, Engelbert. “Post-Keynesian Macroeconomic Foundations for Comparative Political Economy,” Politics & Society 50, no. 1 (2022): 158–159. https://doi.org/10.1177/00323292211006562.
Sulistiyono, Tri, Pratama Herlambang, Dwi Pangestu Khoirunisa, and Ahmad Zaharuddin Sani Ahmad Sabri. “Strengthening the Role of Community in Improving the Quality of The Manpower.” Indonesian Journal of Advocacy and Legal Services 4, no. 1 (2022): 123-140. https://doi.org/10.15294/ijals.v4i1.53366
Sulistiyono, Tri, Pratama Herlambang, Safari Chandra, Moch Fahmi Abdulaziz, and Nur Arissa Izzati binti Mohamad Roki. “Protection of Indonesian Migrant Workers in China: The Government’s Role and Legal Aspects”. Lex Scientia Law Review 6, no. 1 (2022): 93-120. https://doi.org/10.15294/lesrev.v6i1.55112
Sunaryo, Sidik. “The Philosophy of Social Injustice for All Indonesian Laborers Set Forth in Job Creation Law”. Legality: Jurnal Ilmiah Hukum 31, no. 1 (2023): 112-23. https://doi.org/10.22219/ljih.v31i1.25330
Suryomenggolo, Jafar, and Indah Saptorini. Kekuatan Sosial Serikat Buruh: Peraturan Baru dalam Perjuangan Menolak Outsourcing. (Jakarta: Trade Union Rights Center Jakarta, 2007).
Sutedi, Adrian. Hukum Perburuhan. (Jakarta: Sinar Grafika, 2011).
Tjandra, Surya. “Labor Law and Development in Indonesia”. Dissertation. (Leiden: Universiteit Leiden, 2016).
Tjandraningsih, Indrasari, Rina Herawati, and Suhamadi. Diskriminatif dan Eksploitatif Praktek Kerja Kontrak dan Outsourcing Buruh di Sektor Industri Metal di Indonesia. (Jakarta: AKATIGA-FSPMI-FES, 2010).
Utomo, Nurrahman Aji. “Dinamika Hubungan Antara Pengujian Undang-Undang dengan Pembentukan Undang-Undang”. Jurnal Konstitusi 12, no. 4 (2015): 825-845. https://doi.org/10.31078/jk1248
Viet Nam. Decree Implementing Article 54.3 of the Labor Code on Licensing of Labor Outsourcing Activities, Payment of an Escrow Deposit, and Regulating the List of Jobs for Which Labor May Be Outsourced No. 55-2013-ND-CP, 2013.
Viet Nam. Labor Code (No. 45/2019/QH14), 2019. Available online at https://www.ilo.org/dyn/natlex/natlex4.detail?p_lang=en&p_isn=110469&p_count=13&p_classification=01
Wijayanti, Asri. “Rights to The Freedom of The Trade Unions in The Constitution and Its Implementation”. International Journal of Applied Business and Economic Research 15, no. 7 (2017): 107-115.
Yusriadi, Haedar Akib and Andi Ihsan. “Bureaucratic Reform in Public Service: A Case Study on the One Stop-Integrated Service”. Mediterranean Journal of Social Sciences 8, no. 2 (2017): 253-258. http://dx.doi.org/10.5901/mjss.2017.v8n2p253