Indonesia urges businesses to expand job opportunities for older workers

Indonesia’s Ministry of Manpower on Thursday called on businesses to expand job opportunities for older workers, citing the nation’s rapidly ageing population and the untapped potential of its senior workforce.

In a statement issued in Jakarta, Estiarty Haryani, Acting Director General for Job Placement and Employment Expansion at the ministry, emphasized the need for inclusive labor policies to better harness the skills, experience, and institutional knowledge of older employees.

“Inclusive labor policies are essential to ensure that older workers remain productive contributors to the economy,” she said, underscoring the importance of adapting workplaces to demographic shifts.

According to data from Statistics Indonesia, the country’s elderly population is projected to reach approximately 11.93 percent of the total by 2025. The increase, driven by longer life expectancy, signals Indonesia’s transition toward an ageing society and presents both economic challenges and opportunities.

Despite this trend, labor force participation among older workers remains relatively low compared with prime-age groups, highlighting a significant pool of underutilised talent. Experts say integrating older workers into the workforce can help address skills shortages, enhance productivity, and support sustainable economic growth.

To address the gap, the ministry is advancing initiatives aimed at expanding inclusive access to employment for senior citizens. These efforts include moving beyond formal policy frameworks and developing sustainable placement and empowerment models that can be replicated nationwide.

Estiarty stressed that building an inclusive labor ecosystem requires collaboration across sectors, including government agencies, businesses, academia, communities, media, and development partners.

“Collaboration is key so that policies are not only implementable but also deliver real impact on the ground,” she said.

As part of its broader strategy, the ministry is drafting a regulation on the placement and empowerment of special worker groups, including older workers. The proposed regulation is expected to strengthen legal frameworks, provide clearer guidelines for employers, and improve access to decent and dignified employment for elderly workers.

The initiative aligns with Indonesia’s long-term workforce development goals, positioning experienced professionals as valuable contributors to the nation’s evolving economic landscape.