New Protection for Employees: Employers are Prohibited from Withholding Employees Personal Documents.

The Indonesian Ministry of Manpower has finally enacted a new rule relating to the prohibition of fraudulent withholding of employee’s documents. The recent polemic and concerns raised by Indonesian workers have finally been acknowledged by the government under Circular Letter of the Minister of Manpower Number M/5/HK.04.00/V/2025 (“Circular No. 5/2005”). The issuance of this Circular responds to growing concerns among workers and reflects the government’s commitment to safeguarding the employees’ rights. Below are key takeaways from the Circular:

1. Under point 1 of Circular No. 5/2005, Employers are prohibited from requiring or
   withholding diplomas or “personal documents” of their employees/workers as a
   condition for employment. Further, Circular No. 5/2005, provides a clearer
   explanation of what constitutes “personal documents”, which includes:
   a. Competence Certification;
   b. Passport;
   c. Birth Certificate;
   d. Marriage Certificate;
   e. Motor Vehicle Ownership Book (BPKP);
2. Further, Circular No. 5/2005, also provides caution for potential workers/employees
   to fully understand and review the requirements in the employment contract if the
   demands are required during the recruitment process.
3. Nonetheless, there are few exceptions in which the Employers are allowed to
   request the documents, as follows:
   a. First, if the employees’ diploma or document was obtained through
   education or training financed by the employer, submission may be allowed
   provided it is explicitly stated in writing in the employment contract signed
   by both parties;
   b. Second, the employers must guarantee the safety of the documents. If that
   the document is lost or damaged, the employers shall be responsible for
   compensation.

It is important to note that the newly applicable regulation do not provide specific sanction for employers that withheld personal documents. According to one of Indonesian legal practitioners, withholding personal documents of employees can be regarded as a violation under Article 368 point 1 of the Indonesian criminal code on extortion and blackmail, and also under Article 1365 of the Indonesian Civil Code on tortious act.

With this regulation, the government emphasizes the protection measure for the workers that helps promote fair employment practices without any forced compliance. This step marks a crucial milestone in ensuring the dignity and the protection for workers in Indonesia.