Grey Literature
Tinjauan Yuridis terhadap Perlindaungan Hukum Tenaga Kerja Indonesia yang Bekerja pada Subcontractor Perusahan Asing di Kota Batam
ENSURING LEGAL PROTECTION OF INDONESIAN WORKERS UNDER THE SUBCONTRATING
SYSTEM OF FOREIGN COMPANIES
IN BATAM
Abstract
Subcontracting system has been implemented by various foreign companies in Batam aiming to share risks to other companies and as well as to reduce their burdens. In the era of ASEAN Economic Community (AEC), competitions and challenges faced by foreign companies in Batam become more intense and open. The companies have to consider the efficiencies and effectiveness in their operations for them to maintain their existence. One of the methods adopted by many foreign electronic industries and shipyards in Batam is to shift some production process chains to the other parties. This method is referred to as a subcontracting system. This system has caused a lengthy polemic between foreign companies and Indonesian workers because both parties do not have sufficient legal knowledge regarding the actual workers’ rights and obligations under the system. The question is whether Law No. 13 of 2003 which specifically determines the rights and obligations of employers and workers also governs the subcontracting system. The subcontracting system seems to be similar with the outsourcing system under Article 66 of Law No. 13 of 2003.
The subcontracting system is more profitable for companies, but it gives more disadvantages to workers because the employment relationship is established under a specific time employment agreement. As the results, the employment agreement may contain the provisions causing a lack of job security and career development assurance. This study particularly aims to find out whether there are different approaches between the outsourcing system under Law No.13 of 2003 and the subcontractor system implemented in many foreign companies in Batam. This study also aims to propose the methods of protecting the workers’ rights under the subcontracting system. This study adopts the legal protection and Pancasila legal aims as legal bases to analyze Law No.13 of 2003 and the practices of subcontracting system in Batam.
Keywords: subcontracting system, foreign companies, Batam
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