Economists Value The Elimination Of Work Age Limits For Solutions Amid The Wave Of Layoffs

JAKARTA - The government's plan to abolish the working age limit can be a solution in the midst of the increasing termination of employment (PHK). This was said by the Economics Director of the Center of Economics and Law Studies (Celios) Nailul Huda.

According to him, removing the work age limit will make it easier for people who are laid off at the age of 30 to 40 to get a job back.

"The abolition of this age limit is arguably an opportunity for those who have lost their jobs at an adult age (30-40 years) even over 40 years old," Nailul said as quoted by ANTARA, Saturday, May 24.

He also supports the government's plan to remove the provisions of the working age limit, which according to him is very discriminatory towards individuals.

"I support the government's efforts to remove age limits and narratives to look attractive in job vacancies, especially for age restrictions. Moreover, the age limit is very discriminatory towards individuals," he said.

According to him, people who are laid off at the age of 30-40 now tend to find it difficult to get jobs again, even though their needs are getting higher as they are married.

He said, often the age limit is made by companies to reduce labor costs, because it will be easier to attract prospective young workers.

"As a result, at a young age, the victims of layoffs turned to the informal sector that did not provide better welfare," said Nailul.

In addition, he assessed that other requirements in the form of 'looking attractive' in the recruitment of workers were also categorized as discrimination against individuals and very subjective.

"So, I see that the steps to remove the age limit for workers and the narrative of 'looking attractive' are correct," he said.

The Minister of Manpower (Menaker) Yassierli said that his party was still reviewing further the proposed elimination of the age limit which is often included as a condition in the recruitment of company workers.

If the proposal has been studied, then his party will make regulations in the form of appeals and/or circulars (SE). "God willing, we will respond immediately with an appeal and SE," said Minister of Manpower Yassierli.

Regarding the requirements for recruitment and other work admissions, Yassierli said, the government through the Ministry of Manpower has also made an appeal, one of which is about prohibiting the detention of diplomas by employers.

The Circular (SE) Number M / 5 / HK.04.00 / V / 2025 concerning the Prohibition of Detention of Certificates and / or Personal Documents Owned by Workers / Laborers was issued following the many practices of detention of diplomas in various companies and have occurred with a long period in Indonesia.

The Ministry of Manpower revealed that the number of layoffs (PHK) had reached 26,455 cases as of May 20, 2025.

"(The case of layoffs) was 26,455 as of May 20 this morning, Central Java was still the highest, Jakarta number two, Riau number three. The sector is in processing, wholesale trading in retail, and services," said the Director General of Industrial Relations and Social Security for Manpower (PHI and Jamsos) of the Ministry of Manpower, Indah Anggoro Putri.