Regulation Watch · Business Licensing · Indonesia, including Bali
Outsourcing Is Now Limited to Six Supporting-Work Categories
Permenaker 7/2026 limits outsourced labour to specified supporting work, requires contract registration within three working days, and gives existing arrangements until 30 April 2028 to align their work categories.
- Published
- Promulgated 30 April 2026 after issuance on 30 April 2026
- Effective
- 30 April 2026
- Updated
- 9 September 2026
Who is affected
PT PMA companies and other employers using outsourced workers, outsourcing companies, directors and management, HR and procurement teams, and workers supplied for cleaning, food and beverage, security, driver or worker-transport, operational-support, or specified extractive and electricity support work.
Practical impact
A client company may outsource labour only through a written outsourcing agreement and only for the supporting-work categories listed in the regulation. The agreement must state the work, term, location, worker count, worker protections and rights, and each party's obligations. Although the outsourcing company is responsible for delivering the workers' statutory rights, the client company must ensure that it does so. The outsourcing company must register the signed agreement with the labour office at the work location within three working days.
Late discovery: Permenaker 7/2026 was issued, promulgated, and made effective on 30 April 2026. It remains highly actionable because new outsourcing agreements are already subject to the rule, every agreement has a three-working-day registration requirement, and existing outsourced work categories have a fixed alignment deadline of 30 April 2028.
The permitted categories are cleaning services; food and beverage provision; security; drivers and worker transport; operational-support services; and supporting work in mining, oil, gas, and electricity. The list is important for Bali hospitality and property businesses that commonly outsource cleaning, security, drivers, and some operational teams. Each actual role and arrangement should be mapped to the regulation rather than relying only on the vendor's description.
Every outsourcing agreement must be written and contain the outsourced work, agreement term, work location, number of workers, worker protections and rights, and the rights and obligations of both companies. The outsourcing provider remains responsible for statutory employment rights, but the client company has an express responsibility to ensure those protections are fulfilled. A compliant file therefore needs both the agreement and evidence of ongoing worker-rights compliance.
The outsourcing provider must hold the applicable business licence, implement K3 and environmental standards, register the agreement with the labour office at the work location within three working days after signature, and start its licensed business within one year after licensing. Existing agreements may run until expiry, but that transition does not postpone the 30 April 2028 deadline for aligning the outsourced work categories.
Required action
- Inventory every outsourced role and map it to one of the six permitted supporting-work categories; do not treat a vendor invoice or service label as sufficient if the arrangement is substantively a supply of workers.
- Review each outsourcing agreement for the mandatory terms covering scope, duration, work location, worker numbers, statutory protections and rights, and the responsibilities of both companies.
- Require the outsourcing provider to show its valid risk-based business licence and proof that the agreement was registered with the labour office at the work location within three working days after signing.
- Add contractual audit and evidence rights so the client can verify wages, overtime, working and rest time, annual leave, K3, social security, religious-holiday allowance, and end-of-employment rights.
- Prepare a documented remediation or insourcing plan for any existing role outside the permitted categories before 30 April 2028, without waiting for the underlying contract to approach expiry.