ILO study urges Indonesia to strengthen disability employment quotas with lessons from Asia

Indonesia needs to strengthen the implementation, monitoring and enforcement of disability employment quotas to translate legal commitments into better labour market outcomes, according to a new study by the International Labour Organization (ILO).

The study, Disability Employment Quotas: Lessons for Indonesia from ASEAN and East Asia, compares Indonesia’s quota system with approaches in China, Japan, Malaysia, the Philippines, the Republic of Korea, Singapore and Thailand. It examines how quota schemes are designed, governed and enforced, with the aim of identifying practical reforms for Indonesia.

Indonesia has made progress in developing laws and policies to promote disability inclusion in employment, including quota requirements covering both public- and private-sector employers. However, the ILO said translating these requirements into tangible employment outcomes remains a challenge.

Across East and Southeast Asia, persons with disabilities continue to experience lower labour force participation and poorer employment outcomes than people without disabilities, highlighting the need for policies that address barriers to employment beyond simply setting quotas.

“Quota systems aim to stimulate labour demand by requiring employers to employ persons with disabilities at a specified percentage of their workforce,” the study said. However, it stressed that legal mandates alone are not enough to make such systems effective.

The ILO study calls for coordinated action involving governments, employers’ and workers’ organisations, and organisations of persons with disabilities. Effective quota systems, it said, require clear regulations alongside strong compliance and monitoring mechanisms, institutional support, incentives for employers and broader measures to remove barriers to employment.

The report also shifts the focus away from individual employability towards the wider ecosystem influencing disability-inclusive employment. This includes workplace practices, institutional support and other factors that can either enable or prevent employers from meeting disability employment quotas.

The study identifies 17 evidence-based recommendations to support policy dialogue and strengthen Indonesia’s efforts to promote disability-inclusive employment.

The recommendations are particularly relevant to Indonesia’s wider human capital and inclusion agenda under Priority 4 of its Mid-Term National Development Framework, which includes a formal-sector employment target.

Simrin Singh, ILO Country Director for Indonesia and Timor-Leste, said the study could support ongoing policy reforms and help strengthen institutional capacity.

“By fostering dialogue among key stakeholders and promoting evidence-based policymaking, we hope this report will support Indonesia and other countries in building labour markets that leave no one behind,” she said.

The study was developed through the ILO’s Global Accelerator on Jobs and Social Protection for Just Transition in Indonesia and is intended to provide policymakers with practical lessons from disability employment quota systems across Asia.