Prabowo Considers Phasing Out Outsourcing, to Meet 150 Labor and Company Leaders at Bogor Palace

Jakarta, Bungkus.biz.id – President Prabowo Subianto has expressed his commitment to reviewing the elimination of the outsourcing system in Indonesia’s labor sector. Speaking at the 2025 International Workers’ Day (May Day) celebration at Monas, Jakarta, on Thursday (1/5), Prabowo announced that he has tasked the National Labor Welfare Council with studying the matter.

However, he emphasized the need to maintain a balance with investor interests to prevent potential job losses.

“If there are no investors, there will be no factories, and therefore, no jobs. So we must be realistic and work together,” Prabowo said.

To address ongoing labor issues and seek a compromise, Prabowo plans to host a meeting at the Bogor Palace between 150 labor union leaders and 150 company executives.

“We will sit down together. I will tell employers, don’t just strive to become wealthy without also helping your workers live decently,” he stated.

The President also highlighted the government’s ongoing efforts to support the people, including electricity subsidies and direct cash assistance (BLT), with a total allocation exceeding IDR 500 trillion. However, he admitted that the aid distribution has not been fully accurate.

“We still receive reports that some ineligible individuals are receiving assistance. This is not right,” he said.

State Secretary Prasetyo Hadi also reiterated the importance of cooperation among all stakeholders—workers, government, and the private sector—in facing current global uncertainties and achieving Indonesia’s economic growth target of 8 percent.

Prabowo’s presence at May Day 2025 marks a historic moment, as he becomes the second Indonesian president to directly attend the celebration—after Soekarno in 1965.

Said Iqbal, President of the Confederation of Indonesian Trade Unions (KSPI) and the Labor Party, praised Prabowo’s attendance as a symbolic gesture of respect for workers.

“It is common in many countries for presidents or prime ministers to attend May Day celebrations as a form of recognition for workers’ contributions,” he noted.

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During the event, KSPI and labor groups presented six key demands:

1. Elimination of the outsourcing system

2. Ratification of the Domestic Workers Bill

3. Protection of workers under the new Employment Law

4. Realization of a living wage

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5. Ratification of the Asset Confiscation Bill

6. Formation of a task force to prevent mass layoffs

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