Executive Director of the Institute for Development of Economics and Finance (Indef) Esther Sri Astuti said that the plan to eliminate the outsourcing system proposed by President Prabowo Subianto could provide certainty for employees.
He said that by eliminating the system, companies were encouraged to make outsourced workers permanent employees.
"The elimination of outsourcing could have an impact on companies willingly or unwillingly appointing outsourced workers as permanent employees so that they get certainty of becoming employees and there is an increase in welfare," said Esther Sri Astuti when contacted.
However, he said that it is possible that there are companies that will avoid the outsourcing system and not make them permanent employees because financial readiness is required for the company to hire outsourced workers.
He stated that companies that employ outsourced workers as permanent employees must comply with various regulations related to employment, such as providing wages in accordance with the provisions of the Regional Minimum Wage (UMR) to providing health insurance and work accidents.
