Association for Public Policy Analysis & Management

Within IT Industry in Jakarta

Globalization has open a broad range of new opportunities to industrial labor including the booming information technology (IT) industry. IT sector has opened up the recruitment labor contract and outsourcing to fill out its labor demand. In regards to employment relation,  there are three types of as follows: fixed/permanent labor, contracts and outsourced. This article will analyze the contract and outsource labor within the IT industry. It reviewed the protection from the wages perspective, occupational safety as well as membership to the labor association. The research conducted in early 2015; the collection of information employed qualitative approach. It was in-depth interviews and focus group discussions. The analysis showed that labor has not entirely protected from the side of wages, although their monthly income has reached above the provincial minimum salary (Rp. 2.700.000). Unfortunately, this take-home pay excludes overtime payment from it. Working overtime likely not being paid, although it is the obligation of companies to fill the gap. Moreover, regarding the employment status, those who are a contract and outsourced labor do have difficulties attaining permanent status. Furthermore, those two type of labor less likely to join the work association due to its pragmatic view on having enough salary. The other burden was their long hours of work that forbid them to adhere to the advocacy and activity by the organization. Lastly, it seems like workers do not receive the support of social security insurance from company particularly IT company with foreign investment.

Keywords: information technology industry, labor, contract, outsourced, protection