Indonesia’s business and labour leaders are grappling with a simmering debate over age limits in hiring – a practice that’s come under renewed scrutiny amid job market turbulence and calls for fairer employment practices.

At the centre of the issue is a familiar dilemma: too many applicants chasing too few job openings. In defending the use of maximum age restrictions in recruitment, the Indonesian Employers Association (Apindo) argued that for certain roles, particularly those requiring physical endurance, youth is still a practical requirement. The age caps also help companies streamline an overwhelming hiring process.

“In Indonesia, if there are only 10 job openings, it’s likely that 1,000 applicants will show up. Should we screen all of them? That would be costly,” said Bob Azam, Apindo’s chair of labour affairs.

The statement came on the heels of remarks from Manpower Minister Yassierli, who has publicly committed to reviewing regulations that allow for age-based discrimination in recruitment. His message was clear: it’s time for equal opportunity hiring.

“We don’t want any discrimination. We want all job opportunities to be open to everyone,” Yassierli told state media outlet Antara.

A similar message has been echoed by the East Java provincial government, which recently issued a circular instructing employers to scrap age-based restrictions during hiring.

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Not just red tape – it’s an oversupply issue

According to Azam, the problem runs deeper than policy. It’s about the mismatch between the supply and demand of jobs. He pointed out that unlike Singapore, where vacancies outnumber jobseekers, Indonesia’s labour market is marked by scarcity of opportunities, leading companies to impose age limits as a filtering mechanism.

“We should be talking about job creation, not just regulation,” Azam said.

Jemmy Kartiwa, chairman of the Indonesian Textile Association (API), reflected on how the labour landscape has flipped over the decades. In the 1990s, textile firms struggled to fill vacancies. Employers had to raise wages and even engage headhunters to find workers for roles as basic as machine operators. Fast-forward to today, and the tables have turned – jobseekers are now queuing up in droves, with some reportedly going as far as bribing recruiters to secure a spot.

“So, how do we solve this? Job creation,” Jemmy said, underlining that expanding employment opportunities remains the only sustainable solution.

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A rising tide of layoffs

The urgency of the issue is underscored by fresh layoff data. Between January and February 2025, around 60,000 workers across 50 unionised companies were let go, according to the Confederation of Indonesian Trade Unions (KSPI). That figure nearly eclipses the Manpower Ministry’s total layoff estimate for the entire year: 77,965. Industry insiders, however, suspect the actual number may be significantly higher.

The wave of redundancies has deepened public anxiety about job security, with fears that more pink slips are on the horizon.

Political pledges to turn the tide

Against this backdrop of growing discontent, President Prabowo Subianto stepped into the fray during the May Day rally on 1 May, where hundreds of thousands gathered at Jakarta’s National Monument. He promised a renewed focus on workers’ welfare and unveiled plans for a special task force to curb arbitrary dismissals and enforce fairer labour practices.

His assurances came as a balm to many, though business leaders are waiting to see how such measures will be implemented. Labour groups, meanwhile, continue to push for policies that reflect the realities of an oversaturated job market without penalising older applicants.

The business of balancing fairness and feasibility

While age caps may seem like a relic of outdated thinking, employers argue they’re simply trying to stay afloat in a crowded talent pool. For many HR leaders, the real issue is not who gets filtered out but how to create a labour ecosystem that doesn’t force such compromises in the first place.

In the long run, the challenge lies in building a job market where screening by age becomes redundant – not because it’s outlawed, but because there are enough opportunities for everyone to find a seat at the table. Until then, the debate over age limits will continue to expose the cracks in Indonesia’s employment foundation.