REPUBLIKA.CO.ID, DENPASAR - Labor Minister Muhaimin Iskandar said a new regulation will be issued by the end of this month abolishing outsourcing system of labor recruitment. "The regulation will be issued as soon as possible ; not later than by the end of October," Muhaimin said on Tuesday.
The announcement came after repeated big labor strikes over the past month in the country. Labor unions have staged nation wide protest badly interrupting the process of production in industrial centers.
Muhaimin said on the sidelines of the annual meeting of Asian Productivity Organization(APO) here, outsourcing system could no longer be used for core business workers. The system could be used only for supporting jobs like security, cleaning service, catering and other non core jobs, he said.
"Companies will be given time to adjust to the regulation and I hope in the process of transitional time no workers need to be laid off," he said.