Indonesia Reintroduces Limits On Outsourcing Under New Manpower Regulation

On April 30, 2026, Indonesia’s Ministry of Manpower enacted Regulation No. 7 of 2026 regarding Outsourcing, introducing a significant shift in the country’s labor regime. The new regulation, consisting of 11 articles, marks a departure from the broader flexibility previously seen under the Job Creation Law framework by reimposing clearer limits on outsourcing practices.

Return of the ‘Positive List’

The new regulation strictly limits outsourcing to designated “Supporting Activities” (Kegiatan Penunjang) and introduces a defined “positive list” of activities that may be outsourced, namely:

1. Cleaning services
2. Catering (provision of food and beverages)
3. Security services
4. Driver and worker transportation services