Midtest Presentation of Compensation Management Course by Arga Riztama

1. ARGA RIZTAMA
19009065
THE DILLEMA OF
OUTSOURCED CONTRACT
WORKERS

2. Legal Aspect
 Undang Undang Republik Indonesia Nomor 13
tahun 2003 tentang Ketenagakerjaan.
UMR Outsourcing

3. UMR
 Is contained in Pasal 88 and Pasal 89
Pasal 88 and 89 defines the responsibility of the employer to
compensate the workers with wages that complies with the UMR
Upah Minimum Regional is the minimum allowed wage to be
payed based on the minimum standard of living

4. Outsourcing
 Is contained in Pasal 59, and Pasal 64-66
Pasal 59 states the definition of the PKWT or Contract Worker
Pasal 64-66 states that a company is allowed to do outsourcing as
long as it meets the regulations

5. Study Case
Krakatau Steel
Largest Producer of
Steel in Southeast Asia
Krakatau Steel was established on August 31, 1970s
as a result of Indonesian Government Regulation
No. 35 in the year 1970 regarding is equity
establishment.
Labour Workforce of around 7000 people
Direct reduction plant,
billet steel plant, wire
rod mill

6. Current State
There is a labour union called
Serikat Buruh Krakatau Steel
Outsourcing is used by the company
to fulfill its operational needs
PT Nur Sahara Pratama, Alfindo Banten Sukses
Utama, Spektra Jasindo, ABN, Indo Sarana Usaha,
Saba, Marintara, Putri Banten, and PT CBI.

7. Problems
Unsatisfied workers
Especially outsourced workers
Krakatau Steel sometimes dont
fulfill their promises
Doing the same job as regular
KS workers
Still compensation lacks
Pay form is also only “basic”
They think their job is
undervalued

8. 3 points of view regarding this situation
Each with its own interest
Workers Management Government
Its walfare
job undervalued
Outsourcing is
neccessary to gain a
competitive advantage
Focus on economic
growth

9. Conclusion and Suggestion
Implementation of a
regulations is still vague
Loose
government
control
Outsourced Contract
workers is a dillema
A complete review and
consensus by all of the
3 sides
Each side has its own
interest
Krakatau
Steel

10. THANK YOU!