Anita Rachman – A ministerial decree to support a court ruling limiting the use of outsourcing is on its way, Manpower and Transmigration Minister Muhaimin Iskandar said on Monday.

Muhaimin said his ministry was preparing a decree that would guarantee outsourced workers the same rights and benefits as permanent employees.

The ministry, he said, would ensure the decree stipulated that companies could outsource only peripheral work and not core jobs and that they have to provide their outsourced workers with the same benefits as permanent employees.

"No company would dare to go against the ruling. It must be implemented under the supporting regulations," Muhaimin said. "We are going to issue a ministerial decree to support the ruling, soon."

On Jan. 17, the Constitutional Court declared outsourcing unlawful under the country's Constitution because it would create uncertainty over the livelihood of workers. The court ruled that Indonesian workers had "the right to a decent job and a decent life," which should be the basis of the Labor Law.

The minister, however, did not elaborate on the exact timing of the expected decree but said it would include "tight monitoring on outsourced workers and the kind of work that can be outsourced."

Outsourcing refers to the hiring of workers on a contractual basis, often through a provider company. The workers are usually hired on short-term contracts and paid a daily wage without fringe benefits. Under the revision, outsourced workers would have the same benefits and salary as permanent workers.

"I have talked to Pak Sofjan Wanandi from Apindo and he welcomed the verdict," Muhaimin said, referring to the chairman of the Indonesia Employers Association (Apindo).

Apindo previously had warned that the Constitutional Court ruling could force local manufacturers to lay off some of their employees or relocate to other countries to offset a possible rise in labor costs here. Sofjan had said local manufacturers were in competition with cheaper imported products and higher labor cost would only put more burden on them.

But on Monday, he said Apindo welcomed the court ruling. He said the group would participate in discussions on the regulation with the ministry. "The tripartite meeting will be held soon," Sofjan said. "Because we might have different interpretations of the verdict; employers interpreting in a particular way, and the workers might be assuming it in a different way."

Timbul Siregar, chairman of the Indonesian Workers Association (OPSI), told the Jakarta Globe his group was also ready for the discussion.