Indonesia’s Constitutional Court Decisions on Outsourcing Scheme: Balancing Protection and Efficiency?

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I Dewa Gede Palguna
Ita Nurjanah
Ni Komang Tari Padmawati
I Komang Dananjaya
I Made Halmadiningrat


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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How to Cite
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.
Research Articles
Author Biographies

I Dewa Gede Palguna, Faculty of Law, Universitas Udayana

I Dewa Gede Palguna is a lecturer at the Faculty of Law, Udayana University. He served as a justice of the Indonesia Constitutional Court for two terms: 2003-2008 and 2015-2020. His latest publications are articles entitled “Towards Quality and Sustainable Tourism in Bali: Should the Regional Master Plan be Adjusted?” published in Udayana Journal of Law and Culture (2023) and “The Regulation of the Ownership of Flats by Foreigners after the Enactment of the Job Creation Law” published in Indonesia Law Review (2022).

Ita Nurjanah, Faculty of International Relations, Tokyo International University

Ita Nurjanah is a 4th-year international relations student from Tokyo International University, Japan. Her research interests include Political Islamic and terrorism issues, feminism and gender equality, sociocultural issues, and US-China-ASEAN relations. She was invited to The Young SEAkers China’s 3rd ASEAN-China Youth Leaders’ Summit, where she engaged in discussions with young leaders from Southeast Asia and China. Ita also delivered a lecture on the introduction to Islam as a guest speaker for the World Religion Class at Tokyo International University alongside Professor Mueller in 2021. She actively contributes to multiple NGOs focused on education, driven by her lower-middle-income upbringing and strong passion for social-international issues. Through her academic pursuits and active engagement, Ita Nurjanah aims to significantly contribute to international relations, promoting understanding, and fostering cooperation among diverse cultures and nations.

Ni Komang Tari Padmawati, Faculty of Law, Universitas Udayana

Ni Komang Tari Padmawati is a law graduate. She obtained her degree in the Faculty of Law Udayana University.  In 2021, she was awarded as an outstanding student of the faculty. Tari is currently working as a personal assistant. While having a full-time job, Tari is conducting research in issues related to law and environmental matters and learning voice acting as her side hustle. Besides, she developed research interests in international business and other private sector. Her latest publication is “Automatic Exchange of Information (AEoI) for Indonesian Tax Purposes: Economic Analysis of Law Approach” published in Lex Scientia Law Review (2022).

I Komang Dananjaya, Faculty of Law, Universitas Udayana

I Komang Dananjaya is a final year student at the Faculty of Law Udayana University. His latest publications entitled “The Legality of Russia’s Special Military Operation from International Law Perspective” published in Kertha Patrika (2022) and a book chapter entitled “Permasalahan Penyelesaian Persoalan Pemilu: Inkosistensi Putusan Mahkamah Konstitusi dan Upaya Menghidupkan Kembali Pembentukan Peradilan Khusus Pemilu di Indonesia” published by FH UII Press (2022).

I Made Halmadiningrat, Faculty of Law, Universitad Udayana

I Made Halmadiningrat is a final year student at the Faculty of Law, Udayana University. In 2022, he was selected as an awardee of the Indonesia International Student Mobility Award (IISMA) which allows him to study at Maastricht University in the Netherlands. Halma has a strong research interest in constitutional law. Currently, Halma is a legal intern in RAH (The House of Legal Experts). His latest publication is a book chapter entitled “Permasalahan Penyelesaian Persoalan Pemilu: Inkosistensi Putusan Mahkamah Konstitusi dan Upaya Menghidupkan Kembali Pembentukan Peradilan Khusus Pemilu di Indonesia” published by FH UII Press (2022).


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