The International Labour Organization has issued a stark warning: without proper safeguards, artificial intelligence could widen gender inequality in Indonesia's workforce rather than close it. As AI-driven recruitment tools become more prevalent, the risk of embedding historical biases into hiring decisions grows — a concern that demands immediate attention from Indonesian employers.
The Scale of the Challenge
Indonesia's labour market already faces significant gender disparities. The 2025 National Labour Force Survey reveals that women's workforce participation stands at just 56.42 percent, compared to 84.66 percent for men. This gap creates a troubling foundation for AI deployment: algorithms trained on historical hiring data risk perpetuating these inequalities by favouring male candidates over equally qualified women.
At a policy dialogue in Jakarta on 20 November 2025, the ILO presented research showing that one in four workers globally are in jobs exposed to generative AI, with women disproportionately affected. The concern isn't theoretical — automated recruitment tools have already demonstrated bias in several markets, screening out female applicants based on patterns learned from past hiring decisions that reflected workplace discrimination rather than merit.
Beyond Recruitment: AI's Wider Workplace Impact
The implications extend far beyond initial hiring. AI systems are increasingly used for performance evaluations, promotion decisions, and workforce management. Senior Researcher Pawel Gmyrek highlighted specific risks: intrusive monitoring, collection of sensitive worker data, screening of internal communications, and automated dismissals based on opaque metrics. Each of these applications carries potential for discriminatory outcomes if not carefully governed.
Indonesia's Coordinating Minister for Human Development and Culture, Pratikno, acknowledged these challenges, announcing the formation of a government task force to develop human-centred AI policies. "As AI becomes more embedded in recruitment, profiling, and promotion, we must ensure that it produces equitable outcomes," he stated.
The Indonesia Recruitment Context
For Indonesian employers navigating executive search and senior-level recruitment, these warnings carry particular weight. While AI tools may offer efficiency in high-volume, staff-level hiring, the technology's limitations become more pronounced at senior levels where nuanced judgement, cultural fit, and relationship-building matter most.
"AI can process CVs at scale, but it can't assess the strategic thinking, leadership presence, or cultural alignment that defines successful senior hires in Indonesia's business environment," notes Andrew Hairs, CEO of Select Headhunter. "The technology is a tool, not a replacement for experienced recruiters who understand the local market."
Traditional executive search methodologies — built on direct outreach, referral networks, and thorough market mapping — remain essential for mid- to senior-level positions. These approaches naturally incorporate the contextual understanding and human judgement needed to identify high-performing talent while avoiding the algorithmic biases that concern the ILO.
Implications for Indonesian Employers
Business leaders and HR professionals attended the ILO dialogue in significant numbers, with over 100 participants examining how to harness AI's potential while minimising risks. The consensus pointed toward establishing clear governance frameworks before widespread adoption.
Key considerations for Indonesian organisations include:
Transparency in AI systems: Understanding how automated tools make decisions about candidates, particularly regarding what data they use and how they weight different factors.
Regular bias auditing: Implementing processes to test AI recruitment tools for discriminatory patterns, with particular attention to gender outcomes.
Human oversight: Maintaining experienced recruiters in decision-making roles, especially for senior positions where stakes are highest.
Worker protections: Ensuring AI monitoring and evaluation systems respect employee rights and don't enable unfair dismissal practices.
Labor representatives at the dialogue, including Kun Wardana Abyoto and Yunus Triyonggo, emphasised the need for these safeguards, questioning whether Indonesian workers are prepared for rapid digital transformation in hiring practices.
Moving Forward
The ILO's warning arrives at a critical moment. As organisations across Indonesia consider AI adoption for talent acquisition, the imperative is clear: technology deployment must be deliberate, governed, and focused on expanding access to opportunities rather than replicating existing inequalities.
ILO Country Director Simrin Singh framed the challenge as one requiring collective action: "Used responsibly, AI can reduce bias and support more transparent, inclusive HR systems." The alternative — uncritical adoption of biased tools — risks entrenching gender disparities that Indonesia has worked decades to address.
For organisations focused on senior-level hiring, the path forward combines technology's administrative efficiencies with the irreplaceable value of human expertise, market knowledge, and relationship-driven search methodologies.
Conclusion
Indonesian employers face a choice in how they integrate AI into talent acquisition. The technology offers genuine benefits for certain recruitment functions, but it demands careful governance to prevent algorithmic discrimination. For executive search and senior-level positions, human judgement remains indispensable.
Organisations serious about equitable hiring outcomes should audit their current recruitment technologies, establish clear AI governance policies, and ensure experienced professionals remain central to hiring decisions — particularly for roles where leadership capabilities and cultural fit determine success.