The alleged widespread practice of withholding diplomas by both private and state-owned companies has drawn criticism from the public and employees. This practice is suspected to stem from insufficient government oversight and the reluctance of victims to report such violations out of fear of losing their jobs.
“Diploma withholding by companies has occurred frequently. However, due to the lack of government supervision and the victims’ fear of reporting the issue, these violations continue to happen,” stated Universitas Gadjah Mada (UGM) Labor Law Expert Dr. Murti Pramuwardhani Dewi on Wednesday, Jun. 4, 2025.
The lecturer at the UGM Faculty of Law (FH UGM) emphasized that the practice of withholding diplomas by employers constitutes both a legal violation and a breach of human rights.
In the context of labor law, withholding diplomas is explicitly prohibited, as it infringes upon a person’s right to personal identity.
Although this issue is not specifically addressed in Law No. 13 of 2003 on Manpower, the Ministerial Circular Letter (SE Menaker) No. M/5/HK.04.00/V/2005 states that employers are prohibited from withholding employees’ diplomas and other personal documents.
According to Dr. Dewi, there is a potential power imbalance in the relationship between employer and employee, which discourages employees from reporting such violations.
In fact, if documents are lost or damaged while held by a company, the document owner has the right to file a claim for the damage.
“The phenomenon of diploma withholding may arise from conflicting interests between the employee and the company. Employees typically seek job security and improved welfare, while companies pursue productivity and profit,” she explained.
Dr. Dewi emphasized the importance of establishing a written employment agreement before commencing any working relationship.
Such agreements should be based on mutual consent and must not contravene laws, public order, morality, or decency in accordance with the principle of Freedom of Contract.
This ensures that if either party breaches the agreement, the predetermined consequences can be enforced.
“There must be legal certainty for all parties involved,” said Dr. Dewi.
This legal concept is known as the Pacta Sunt Servanda principle, meaning that any agreement made between parties is binding and holds the same authority as law for those parties.
Nonetheless, Dr. Dewi believes that the prevalence of diploma withholding is largely driven by intense competition in the job market.
The number of job seekers far exceeds the available employment opportunities, placing workers at a disadvantage and leaving them with little choice but to accept company policies, even those that are unlawful.
“The government must take firm action to tighten regulations and enhance oversight regarding the withholding of personal documents,” she emphasized.
In line with this, Professor Susetiawa from the Department of Social Development and Welfare, Faculty of Social and Political Sciences (Fisipol UGM), stated that a diploma is one of the subjective indicators of well-being for its holder.
If the document is lost or damaged due to disasters or employer negligence, the holder may be unable to reissue it.
Therefore, there must be legal protection and supervision to ensure companies do not arbitrarily withhold diplomas.
“If companies require an employee’s diploma, a legalized copy or temporary viewing of the original should suffice. The original document must be returned to the owner immediately afterward,” he concluded.
Author: Tasya
Editor: Gusti Grehenson
Post-editor: Lintang Andwyna
Illustration: Freepik