Jakarta Globe, 21 Aug 2015
 |
Indonesian
migrant workers sent some $8 billion in remittance to their families
in the
first half of last year, according to the Center for Indonesian Policy
Studies.
(Antara Photo/Hafidz Mubarak)
|
Jakarta. A
study by an Indonesian non-profit policy center is urging the government to
simplify the procedure for Indonesian migrant workers to go abroad after it was
discovered that massive red tape only lead to troubles for the workers and
potential income loss for their villages.
The Center
for Indonesian Policy Studies [CIPS] revealed a study on Thursday titled
"Reducing Financial Burdens of Indonesian Migrant Workers," written
by CIPS board member Arianto A. Patunru and Rofi Uddarojat, policy researcher.
The study
found that 400,000 Indonesians had left their villages in 2014 to work abroad.
That same
year, migrant workers (TKI) sent some $8 billion in funds to their respective
families and to aid the development of their villages. The cash was used for education,
housing, consumption and starting small businesses, the study found.
The amount
is significantly higher than Indonesia's foreign direct investment (FDI) and
overseas development assistance (ODA).
According
to data from Indonesia's central bank, remittances from migrant workers grew
15.5 percent to $3.12 billion in this year's January-April period, compared to
$2.63 billion in the same period last year.
The funds
came from 1.5 million migrant workers in the formal sector and 2.2 million
workers in the non formal sector.
World Bank
estimated that remittances sent by migrant workers reduced Indonesia's poverty
race to 26.7 percent through 2000 to 2007. However, the regulations set by the
government ̶ initially meant to protect the workers ̶ have
negative consequences and implementations.
"Government
procedures for the recruitment and protection of migrant workers could take up
to four months. The lengthy duration causes substantial income losses,"
the study said.
Rofi said
that the government needs to recognize the financial contributions of migrant
workers to equitable economic growth and village prosperity.
"Their
remittances provide opportunities for the education of children and the
development of local businesses," he said in a statement.
According
to Rofi, complex and lengthy bureaucratic procedures place an excessive burden
on poor and unskilled workers.
"The
[procedures] also make them vulnerable to the exploitative practices of
recruitment brokers and agents," he said.
The study
revealed that the procedures include hefty charges of up to $600, indirectly
borne by the workers themselves.
According
to the study, bureaucratic obstacles do not protect migrant workers. In fact,
from 2011 to 2013, only 0.5 percent of Indonesian migrant workers reported
physical violence or sexual abuse abroad. Therefore, the government's
unnecessary procedures would only create challenges for these workers.
The study
urged the government to cancel the moratorium on sending workers to 21
countries in the Middle East which was issued in May.
"This
policy will lead to annual losses of $3 billion in income for rural areas and
it will encourage illegal migration," the study revealed.
CIPS' study
also called on the state to drop the requirement of submitting a permission
letter by heads of the migrants' households as all the migrants are adults and
there has been no proof to support that these letters help reduce human
trafficking.
CIPS has
also asked state-run health care centers [Puskesmas] to conduct health checks
for migrant workers to simplify the mandatory procedure.
The study
also urged the government to cut mandatory training for the workers to four
weeks.
GlobeAsia
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