A CRITICAL ANALYSIS OF OUTSOURCING PRACTICES IN THE MANUFACTURING INDUSTRY IN INDONESIA: A REGULATORY AND WORK ETHICS PERSPECTIVE

Irgi Maulana
Drs. Henky Hendrawan
-
2025
A CRITICAL ANALYSIS OF OUTSOURCING PRACTICES IN THE MANUFACTURING INDUSTRY IN INDONESIA: A REGULATORY AND WORK ETHICS PERSPECTIVE
Depok-GICI Business School-2025
Laporan Penelitian Dosen S1 Manajemen

This paper examines outsourcing practices in the manufacturing industry in Indonesia, focusing on regulatory and ethical aspects. This topic is interesting because outsourcing is still a major strategy for companies to achieve efficiency, yet it continues to spark debates about fairness and protection for workers. The main issue addressed in this study is how outsourcing practices affect fairness in labor relations and the protection of workers' rights within the existing regulatory and ethical framework. This paper offers a critical perspective based on recent literature after the enactment of the Omnibus Law (Job Creation), an approach that has not been widely explored in academic literature on outsourcing practices in Indonesia. This research uses a qualitative approach through literature review. The data analyzed includes regulatory documents, academic journals, and reports from relevant reputable institutions from 2021 to 2024. The findings show that post Omnibus Law labor regulations tend to favor employers and do not fully guarantee justice for outsourced workers. In addition, outsourcing practices that lack an ethical foundation weaken workers' motivation and disrupt healthy industrial relations. This study concludes that there is a need to reformulatelabor policies and strengthen ethical practices in the implementation of outsourcing. The implications of this study emphasize the importance of promoting fair and sustainable employment relations in the manufacturing sector

Kata kunci: Outsourcing, Labor Regulations, Worker Protection, Ethical Practices, Industrial Relations.

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