Indonesia: Prohibition of Discrimination During Recruitment

Indonesian Ministry of Manpower recently enacted a circular letter No. M/5/HK.04.00/V/2025 on the Prohibition of Withholding Diplomas and/or Personal Documents of Workers (the “Circular Letter”). The issuance of this Circular Letter marks significant steps of the MoM toward enforcing Article 5 and 6 of Law No 13 of 2003 on Manpower as lastly amended by the Law No 6 of 2023 on the enactment of Government Regulation in Lieu of Law No 2 of 2022 on the Stipulation of Job Creation as Laws (the “Manpower Law”), stating that every employee shall have equal opportunity to obtain work and shall not be subject to discrimination by employers.

Several points have been included in this Circular Letter, such as the following:

1. Employers are strictly prohibited from requiring or withholding diplomas and/or personal documents of workers as a condition of employment. Personal documents include, among others, competency certificates, passports, birth certificates, marriage certificates and vehicle registration documents.
2. Employers are prohibited from obstructing or preventing workers from seeking or obtaining better employment opportunities.
3. Prospective workers are advised to carefully review the terms of their employment agreements, particularly where provisions require the submission of diplomas and/or personal documents as a condition of employment.
4. In exceptional cases where the temporary submission of diplomas or competency certificates is legally justified, such practice is only permissible if:

• the diploma or competency certificate was obtained through education or training financed by the employer under a written employment agreement; or
• the employer must guarantee the security of the documents and provide compensation in the event of damage or loss.

The Circular Letter further reinforces the government’s commitment to ensuring fair and transparent recruitment practices across all sectors. By explicitly prohibiting the retention of diplomas and personal documents, the Government aims to eliminate exploitative practices that often place workers in a vulnerable position and restrict their freedom of employment. In practice, employers are expected to adjust their recruitment policies, standard operating procedures, and employment agreements to comply with this Circular letter.