Indonesia issues Circular Letter to prohibit discriminatory criteria in job recruitment

Summary

Indonesia’s Ministry of Manpower issued a Circular Letter which reinforces the prohibition of discriminatory criteria in recruitment processes. The Circular Letter addresses persistent issues such as age, gender, marital status, and physical appearance requirements in job advertisements, and clarifies that such practices are not permitted unless objectively justified. While the Circular Letter does not introduce sanctions, it signals a clear policy direction towards fair and inclusive hiring, aligning with Indonesia’s legal framework and growing ESG expectations. Employers are encouraged to review their recruitment practices in anticipation of possible future binding regulations.

Introduction

Indonesia has taken a decisive step in promoting fair and inclusive recruitment with the recent issuance of Circular Letter No. M/6/HK/04/V/2025 by the Minister of Manpower ("Circular Letter"). The Circular Letter, released on 28 May 2025, prohibits employers from applying discriminatory criteria in recruitment processes.

Discriminatory practices in employment remains a persistent issue in Indonesia, particularly in the recruitment phase. While existing legislation prohibits discriminatory practices in principle, enforcement and implementation have often been inconsistent. It is still common to find job advertisements specifying requirements based on age, gender, marital status, physical appearance, or other personal characteristics unrelated to the role's competencies or qualifications. The Circular Letter seeks to operationalise long-standing non-discrimination principles enshrined in Indonesian laws and to align recruitment practices with the value of fairness, inclusiveness, and equal opportunity.

Key Takeaways

• The Circular Letter restricts age-based criteria in a recruitment process such that they are only permitted where objectively justified. It reaffirms that non-discrimination rules apply equally to persons with disabilities.
• Although the Circular Letter does not introduce sanctions for non-compliance, it sets out the Ministry's policy direction and may influence future enforcement and regulatory developments.
• In the context of growing Environmental, Social & Governance ("ESG") awareness, employers are encouraged to treat the Circular Letter as a policy benchmark and prepare for possible introduction of binding regulations in the future.

1. Legal framework – the principles of non-discrimination in Indonesian laws

Non-discrimination is a fundamental value and deeply rooted in Indonesia’s legal system. The 1945 Constitution guarantees every citizen the right to work and a humane livelihood. Law No. 13 of 2003 on Manpower (as amended) further mandates equal opportunity and treatment in employment. Additional protections for persons with disabilities are provided under Law No. 8 of 2016 on People With Disabilities, which ensures equal access to jobs, equal pay, reasonable accommodations, and protection from termination on the grounds of disability.

Despite this robust legal framework, discriminatory recruitment practices—such as specifying age, physical appearance, gender, or marital status requirements in job advertisements—remain widespread. The lack of explicit sanctions and limited enforcement have allowed these practices to persist, prompting the government to issue the Circular Letter as a policy response.

2. Key provisions of the circular letter

The Circular Letter reinforces and clarifies the prohibition of discrimination in recruitment:

• Explicit prohibition of discriminatory criteria: Employers are prohibited from including any discriminatory criteria in their recruitment processes, including but not limited to age, gender, physical appearance, marital status, disability, religion, or ethnicity.
• Limited exceptions for age requirements: Age-based criteria are only permitted where they are objectively justified by the nature of the job and must not unduly restrict employment opportunities.
• Equal application to persons with disabilities: The Circular Letter affirms that non-discrimination rules apply equally to persons with disabilities.
• Guidance for regional authorities: Governors are instructed to disseminate the Circular Letter to Regents/Mayors and relevant stakeholders to ensure consistent implementation across the country.

3. Enforcement and business implications

The Circular Letter does not impose direct sanctions for non-compliance, reflecting its status as a policy guideline rather than binding regulation. However, it signals the government’s intent to strengthen enforcement and may pave the way for future regulations with enforceable obligations and penalties.

For employers, the reputational risks associated with discriminatory recruitment practices are increasing, particularly as ESG considerations gain prominence. Non-compliance can result in both financial and reputational harm, potentially undermining long-term business value and stakeholder trust.

4. Next steps for employers

Employers are encouraged to review and update their recruitment policies and practices to align with the principles set out in the Circular Letter. Proactive compliance not only mitigates legal and reputational risks but also supports the development of a fair and equitable labour market. As the regulatory landscape evolves, businesses should anticipate the possibility of binding rules and prepare accordingly.

By adopting non-discriminatory hiring practices, companies can enhance their reputation, reduce the risk of disputes, and contribute to broader social and economic goals—positioning themselves as leaders in responsible business conduct in Indonesia.

This article was authored by Clarence Ding (Head of Employment – Asia), Karen Mitra (Counsel), Norman Ibnuaji (Senior Associate), Hadisti Azzahra (Associate) and Arif Tawakal (Intern).