Journal of Social and Political

Sciences

ISSN 2615-3718 (Online)

ISSN 2621-5675 (Print)

Published: 07 February 2019

Labour Response to Outsourcing Policy, Research in Industrial Intensive Area-Indonesia

AF Sigit Rochadi

Universitas Nasional, Indonesia

pdf download

Download Full-Text Pdf

10.31014/aior.1991.02.01.50

Abstract

This paper describes the responses of manufacturing industry labours toward outsourcing policy in Indonesia. Written based on a research done in Karawang which is the most-dense industrial region in Indonesia. The research has successfully identified a number of violations conducted by businessman against outsourcing policy, and this research has also explored the responses of sustainable workers. An effort has been made by the government under the leadership of Susilo Bambang Yudhoyono system in the form of Ministerial Regulation of the Ministry of Labour Number 19 of 2012 which aims to eliminate ill practices of outsourcing employment. The regulation limits the types of jobs in which the outsourcing system can be administered. This regulation has somehow decreased the anxiety among labours. However, labour organizations still demand the ban of outsourcing system. They keep doing protests and demands to both regional and national government to eliminate the outsourcing system in various moments such as May Day. The major trigger of this problem is the different comprehension of the outsourcing system which leads to labour discrimination. Businessmen perceive outsourcing system as an applicable system to apply in all types of job, leading to discrimination toward outsourcing labours in terms of wage difference, fear to make the association, and work termination threat. The weak supervisory of government apparatus and the needs for local politicians to obtain fund from businessmen has caused the protection over labours less optimum. Moreover, the fragmentation inside labour organizations also made them unable to fight for this issue, and this condition has been utilized by businessmen to spay labour movements.

References

  1. Christ, Margareth H., Mintchick, N., Chen, L., Bierstaker, James L., (2015). Outsourcing The Information System: Determinant, Risks, and Implications for Management Control Systems. Journal of Management Accounting Research, 27 (2) 77-120. https://doi.org/10.2308/jmar-50847

  2. Clegg, Stewart R., Bourden, S., Nikolova, N., (2005) ‘The Outsourcing Debate: Theories and Findings’ Journal of Management and Organization, 11 (2) 37-52. DOI: 10.5172/jmo.2005.11.2.37

  3. Garaventa, Eugene & Telefesen, Thomas, (2001) ‘Outsourcing: The Hidden Cost.' Business Review, 22 (1) 66-78

  4. Hakim, H. A., Ahmad, N. H., Ho, T. C. & Ramayah, T., (2017) ‘The Outsourcing Dilemma on Decision to Outsourse Among Small and Medium Enterprises in Malaysia’ Global Business Review, 18 (2) 348-364. https://doi.org/10.1177/0972150916668603

  5. Halvey, J. K., & Melby, B. M. (2012) Outsourcing, Process, Strategy and Contract, Canada, John Wiley, and Son

  6. Harland, C., Knight, L., Lamming, R., Walker, H. (2005). Outsourcing: assessing the risks and benefit for organizations, sectors, and nations. International Journal of Operations & Production Management, 25 (9) 831-850. https://doi.org/10.1108/01443570510613929

  7. Kakabadse, A. and Kakabadse, N. (2005). Outsourcing: Current and Future Trends. Thunderbird International Business Review, 47 (2) 183-204. DOI: 10.1002/tie.20048

  8. Knights, D., Jones, B. (2007). Outsourcing (the) Economy to India: Utopian and Dystopian Discourses of Offshoring. International Journal of Sociology and Social Policy, 27 (11/12), 433-446, https://doi.org/10.1108/01443330710835792

  9. Indonesia, CIO. (2017). ‘Outsourcing: Pengertian dan Macam-Macamnya’ (Outsourcing: Definition and Types). Retrieved June 4, 2018, from http://cio-indo.blogspot.com/2012/07

  10. Israel, A. (1991). Institutional Development: Incentive to Performance, Baltimore, The John Hopkins University Press.

  11. Kang, M., Wu, X., Hong, P. (2009). Strategic outsourcing practices of multi-national corporations (MNCs) in China. Strategic Outsourcing: An International Journal, 2 (3), 240-256. https://doi.org/10.1108/17538290911005153

  12. Kim, M. O., & Jaffe, S. (2013) The New Korea, New York, Amacom.

  13. Khairi, A. (2018, July 18) ‘(Karawang Laborers Reject Outsourcing System) (S. Rochadi,

  14. Interviewer)

  15. Lahiri, Somnath. (2016) ‘Does Outsourcing Really Improve Firm Performance? Empirical Evidence and Research Agenda’ International Journal of Management Reviews, 18 (4) pp 464-497. https://doi.org/10.1111/ijmr.12075

  16. Naisbitt, J. (1995) Global Paradox, New York, Avon.

  17. Priambudi, K. (2008) Outsourcing versus Serikat Pekerja, (Outsourcing versus trade unions),

  18. Jakarta, Alihdaya Publishing.

  19. Robinson, R., & Hadiz, V. (2004) Reorganising Power In Indonesia The Politic of Oligarchy

  20. in an Age of Markets, London, Routledge Curson.

  21. Rochadi, S. (2014) ‘Industrial Policy and Continuity of Industrial Conflict After the 1997/1998 Economic Crisis' Masyarakat Kebudayaan dan Politik, 27 (2) 28- 41. http://dx.doi.org/10.20473/mkp.V27I22014.91-103

  22. Romdoni (2018, June 2) ‘Labor Inspection’ (S. Rochadi, Interviewer)

  23. Sprarrow, E. (2003) Successful IT Outsourcing, London, Gray.

  24. Sreedevi, R., Tanwar T. (2018) ‘Outsourcing-A Review for Research and Practical Applications’ International Journal of Business and Economics Research, 7 (1) 20-24. 10.11648/j.ijber.20180701.13

  25. Tjandraningsih, I., Nugroho, Hari (2008) ‘The Flexibility Regime and Organised Labour in Indonesia’ Journal of Labour and Management in Development, 9. 1-15

  26. Vaxevanou, A., Konstantopoulos, N., (2015). Basic Prinsiples the Philosophy of Outsourcing. Procedia Social and Behavioral Sciences 175, 567-571. Doi: 10.1016/j.sbspro.2015.01.1238

  27. Winters, J. A. (2011). Oligarchy, Cambridge, Cambridge University Press

  28. Wordl Bank. (2006) Doing Business in 2006, Creating Jobs, Washington, IBRD.

  29. Yasar, I. (2012) Outsourcing Tidak Akan Pernah Bisa Dihapus, (Outsourcing Can Never Be Eliminated) Jakarta, Pelita Fikir Indonesia.

  30. Young, S., (2000) ‘Outsourcing: Lessons From the Literature’ Labour & Industry: A Journal

  31. of The Social and Economic Relationof Work, 10 (3) 97-118. https://doi.org/10.1080/10301763.2000.10669226

  32. Yuliska, S. (2018, June 1) ‘Supervision of Labor Supply Companies’ (S. Rochadi, Interviewer)

  33. Zaenal, Agus. (2018, July 12) ‘Implementation of Outsourcing System in Karawang’ (S. Rochadi, Interviewer)

  34. Zaenal, Taopik. (2018, April 28) ‘Serikat Buruh Menolak Sistem Outsourcing’ (Trade Unions Refuse Outsourcing System) (S. Rochadi, Interviewer)

About Us

The Asian Institute of Research is an online and open-access platform to publish recent research and articles of scholars worldwide. Founded in 2018 and based in Indonesia, the Institute serves as a platform for academics, educators, scholars, and students from Asia and around the world, to connect with one another. The Institute disseminates research that is proven or predicted to be of significant influence for the general public.

Stay Connected

  • Instagram - Black Circle
  • Facebook - Black Circle
  • LinkedIn - Black Circle

Contact Us

Please send all inquiries to the email:

editorial@asianinstituteofresearch.org

Business Address:

5th Floor, Kavling 507, Fajar Graha Pena Tower, Jl. Urip Sumohardjo No.20, Makassar, Indonesia 90234

Copyright © 2018 The Asian Institute of Research. All rights reserved