Jayanty Nada Shofa, Jakarta – A senior economist said Monday that Indonesia should make regulatory changes to get rid of ageism in hiring, as many people complain about becoming "too old for the job" once they hit 30.
The incredibly populous Indonesia has witnessed countless unfair job listings that are only open to people who are no older than 28 years. According to analyst Bhima Yudhistira, it is about time to make the recruitment process in the country more inclusive to cushion the massive layoffs that the worsening US-China trade war might bring, especially for those working in the textile and footwear industry.
"Such age restrictions are a grave concern. Many people impacted by layoffs struggle to find formal jobs because of age discrimination in hiring. That's why we should change the regulations. If needed, we should revise the 2003 Manpower Law," Bhima told the Jakarta Globe.
According to the Central Statistics Agency (BPS), Indonesia boasts a labor force of 152 million people as of August 2024. These figures include those who are available for work but are still unemployed. Over 34 million individuals are in their 30s, while some 33 million others are between 40 and 49 years old. The labor force also comprises approximately 25 million Indonesians who are in their 50s.
Last year, the Constitutional Court denied judicial review on the 2003 Manpower Law. The petitioner had requested that the rules address ageism in the recruitment process. Bhima told the Globe that Indonesia should follow in other countries' footsteps by imposing strict sanctions against employers who discriminate against older candidates.
"Take Vietnam, for example. If an employer discriminates against a candidate based on age or gender, the company has to pay around Rp 6 million [approximately $356] in fines to the [Vietnamese] government. Imagine if there are 100 candidates, the fine could grow to Rp 600 million. Such strict sanctions are needed, so our well-experienced laid-off workers could get accepted to other companies," Bhima told the Globe.
US President Donald Trump's trade war includes a 32 percent import tax on Indonesian goods – a major tariff hike that would come into effect early July. The tariffs could make Indonesian goods sold in the US more expensive, thus potentially dealing a fatal blow to exports and forcing companies to cut manpower.
Following Trump's tariff blitz, the government is mulling setting up a task force specialized in connecting laid-off workers with job opportunities. Media reports showed that Indonesian lawmakers had just set up a team to discuss regulatory changes to the 2003 Manpower Law. The Confederation of Indonesian Trade Unions (KSPI) has also listed some of its recommendations, which were set to tackle issues related to working hours and layoffs, among others.
Source: https://jakartaglobe.id/news/time-for-indonesia-to-get-rid-of-ageism-in-hirin