New Regulation on Outsourcing Work in Indonesia

21st May 2026

OVERVIEW

Indonesia has introduced a development in its labor law framework through the enactment of Minister of Manpower Regulation No. 7 of 2026 concerning Outsourcing Work (Pekerjaan Alih Daya) (“MoM Reg. No. 7/2026”), which was enacted on 30 April 2026. MoM Reg. No. 7/2026 issued before the May Day 2026 commemoration, which reflects the Government’s continuing effort to strengthen legal protection for outsourced workers while providing greater regulatory certainty for businesses engaging in outsourcing arrangements in Indonesia.

This article, prepared by Agniya Anggraeni (Partner) and Cecilia I (Senior Associate) from IMCOLaw, aims to provide an overview of the key provisions introduced under MoM Reg. No. 7/2026.