3rd Asia Pacific International Conference on Industrial Engineering and Operations Management

The Urgence of Regulation of Outsourcing Cross border in Indonesia. Comparison Study of The United States With Indonesia

Nadhea Tungga Devi, Iron Sarira & Abdul Rasyid
Publisher: IEOM Society International
0 Paper Citations
Track: Industrial Management

Therefore, the State of Indonesia has not clearly regulated the rules for cross-border outsourcing. Law Number 13 of 2003 concerning Manpower serves as the legal umbrella for outsourcing, but in practice it does not provide adequate protection for workers. Then, the expansion of outsourcing work practices does not prove that the welfare of workers is getting better. Outsourcing is closely related to wages, they work with the aim of earning income for their living. In Government Regulation Number 35 of 2021 concerning Work Agreements for a certain time, outsourcing, working time, and rest periods and termination of employment are not clearly regulated regarding remuneration for outsourcing. Thus, an ideal rule is needed to regulate wages for outsourcing, such as the arrangement regarding wages in the United States which is regulated in The Fair Labor Standards Act of 1938 and the Service Contract act of 1965. This study aims to determine the United States regulates the wages of outsourcing workers. and find out the ideal arrangement regarding the remuneration of outsourcing workers in Indonesia. To answer the problems above, the method used is normative juridical by examining Indonesian positive law related to outsourcing.


Keywords: Outsourcing crossborder, Employment Relations, Services Providers. 

Published in: 3rd Asia Pacific International Conference on Industrial Engineering and Operations Management, Johor Bahru, Malaysia

Publisher: IEOM Society International
Date of Conference: September 13-15, 2022

ISBN: 978-1-7923-9162-0
ISSN/E-ISSN: 2169-8767