Professional Outsourcing has reported that the Indonesian government’s ban on outsourcing – instigated in 2012 to stop local jobs moving overseas – has failed in its intentions, as many of those low level jobs are now serviced through robotic automation instead.

The decree only allows Indonesian companies to outsource five kinds of roles: cleaning, security, driving, and support services such as mining sites and catering. In the case of alternative roles, it is possible that the uptake of automation has actually driven further unemployment since the law was passed.

In the Jakarta Post, chairman of the Indonesian Outsourcing Association (ABADI) Wisnu Wobowo commented: “Jobs that were handled by people in the past are now filled by machines.”

He cited banks and toll road companies as just a few examples of firms that had started to adopt automation: “To some extent automation is inevitable, but the decree has accelerated the process.”

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