The circumstances in which a company may outsource parts of its activities are limited under Indonesian law. Generally, outsourcing can only be used for work that is separate or ancillary to the company’s main activities (eg cleaning service, security guards, etc, as long as these not the core business of the company).
If work is outsourced other than in accordance with the legal limitations, a relationship of employment will be deemed to exist between the principal company and those performing the work.