INDONESIA Law and Practice Contributed by: Agus Ahadi Deradjat (Agung), Gustaaf Reerink, Adri Dharma, Karina Widyaputri and Ilma Sulistyani, ABNR Counsellors at Law
New Regulation on Outsourcing The government has recently issued Minister of Man - power Regulation No 7 of 2026 on Outsourcing on 30 April 2026. While outsourcing was previously not subject to specific job-type limitations, the regulation now restricts outsourcing to supporting activities such as cleaning services, food and beverage provision, security services, drivers and worker transportation, operational support services, and supporting activities in the mining, oil, gas, and electricity sectors. Upon its entry into force, ie, 30 April 2026, existing outsourcing agreements remain valid until expiry. However, outsourcing companies are required to align the types of outsourced work with the regulation within two years from its promulgation. Any violation is subject to administrative sanctions in the form of written warning and suspension of business activities.
• However, companies registered with the MOL must align their KBLI classification when undertaking corporate actions – such as amendments to their Articles of Association that affect their business purposes or activities – in accordance with applica - ble regulations. Importantly, no action should be required where the adjustment relates solely to changes in numerical KBLI codes without affecting the substance of the compa - ny’s business activities. In such cases, the alignment will be processed automatically through the Ministry of Law’s system and the OSS Risk-Based Approach (OSS RBA) system. The transition to KBLI 2025 across both the OSS RBA and the MOL’s systems is expected to be completed by 18 June 2026, after which all integrated systems will reflect the updated classification. Competition Law As part of the 2025–2029 National Legislation Pro - gram, the Indonesian legislature intends to introduce a new competition bill to amend the existing ICL. How - ever, the timeline for its promulgation remains unclear.
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