“The Catholic Church in Asia Cares for the Migrants in Taiwan”
March 1 6 - 19 , 2007 - Wencui Center
Taipei, Taiwan.
The Problem of
Indonesian Migrant Workers
Report from Indonesia
Prepared by
Serafin Dany Sanusi, OSC
Secretary of Migrant and Itinerant Commission and Secretary of
Commission for Justice and Peace of Bishops' Conference of Indonesia
Preface
Since the government began the program of mobilizing workers to other countries in the 70s, thousands of Indonesians have sought their fortune in other countries. Today, at least 400,000 Indonesian are working overseas. Among the factors motivating many Indonesian citizens to work abroad are the following:
• the increasing supply of workers are not balanced by an increase in available job opportunities
• there is no employment opportunity in villages,
• in cities which are able to absorb low-skilled-workers there is also palpable lack of employment opportunities
• low minimum wages
Many of these migrants depart to other countries, hoping to improve their lives economical lives. However, in most cases, there's no profit, only pain.
Many activists call Indonesian workers “the heroes of foreign exchange.” The title is not exaggerated. Every year, Indonesian workers contribute a significant portion of Indonesia's foreign exchange. According to the research of the Institute for Ecosoc Rights, in Singapore alone, Indonesian workers contribute an average foreign exchange of at least S $ 4,500,000 or Rp. 22.500.000,000 every year. It is a pity that this contribution is not recognized well by the Indonesian government. The workers are never regarded as heroes. On the contrary, the government considers them as a commodity – an object for trading.
How many Indonesian migrant workers are there?
• Approximately 400,000 Indonesians are registered to have legally migrated to other countries each year since 1998. The actual figure is estimated to be much higher because many migrate illegally.
• In 2004, the number of registered Indonesian migrant workers was 380,688 persons. Of this number, 83% are women. More than 90% of female migrant workers work in the informal sector as housemaids. The rest works in the agricultural and industrial sectors as daily labours, as caregivers to the elderly, shop assistants, and as waitresses.
What is the trend of migrant flows from Indonesia?
• The number of migrant workers tends to increase each year. A drastic increase occurred in 1997- 1998 concomitant with the economic crisis occurring in Indonesia.
• A significant drop occurred in 2001 and in 2003 due to a temporary bar on placements in the Middle East and in Taiwan, stricter requirements for dispatching migrant workers, the spread of the SARS epidemic in a number of destination countries in the Asia and Pacific region, and the outbreak of war in the Middle East.
• During the 1980s, the migration of female workers, particularly the domestic sector, started to occur in significant numbers as a consequence of a new Government policy starting to promote labour exports.
• The percentage of female migrant workers continued to increase, so that by 1992 their number was 89% of the 95.908 registered Indonesian migrant workers. By 2001, their percentage reached 91.5% of the total. In 2004, although the percentage of female migrant workers of Indonesian migrant workers dropped to 82.8%, their absolute number is still much higher compared to the number of male migrant workers.
Why do they migrate?
• Because the income in their villages is uncertain and is not enough to meet their daily living expenses.
• Because the number of jobs offered overseas is much higher as well as more varied and more promising
• Following in the footsteps of family or friends who have already migrated earlier.
• Influence by agents whose role is significant in recruitment process
• To gain a higher social status.
Who are the Indonesian female migrant workers?
• The majority are from selected regions, such as West Java (Sukabumi, Cianjur, Indramayu); Central Java (Cilacap, Wonosobo); Yogya (Kulon Progo); East Java (Malang, Kediri, Ponorogo); East Nusa Tenggara, West Nusa Tenggara, South Sulawesi, Lampung.
• The majority are unskilled workers with a low education level, generally only up to primary school.
• The official documents generally record their age as between 18-40 years, but in fact their age ranges between 14-40 years.
• The majority are married and, some are divorced.
Where do Indonesian female migrant workers migrate to?
• By the end of the 1970s, during the oil boom in the Middle East, the major destination country was Saudi Arabia, and there was a high demand for women in the domestic sector. Around 1990, the destination countries for female migrant workers expanded to South East Asia and the Asia Pacific region as a consequence of the opening of job opportunities by Governments in the host countries.
• Currently, the major destination countries for female migrant workers are: Saudi Arabia, Malaysia, Kuwait, Singapore, Hong Kong and Taiwan, while the destination countries for most of the male migrant workers are still Malaysia and Saudi Arabia.
• In Malaysia, the number of female migrant workers is less than the number of male migrant workers, while in Saudi Arabia it is the reverse. In 2004, the number of female migrant workers in Malaysia was 49%, and in Saudi Arabia 94% of the total registered Indonesian migrant workers.
• Malaysia is the favourite choice as destination country for illegal migrant workers.
• The government of Taiwan barred migrant workers in 2003 because of the high levies charge by local agents who are business partners of PJTKIs, high numbers of female migrant workers running away from their employers, and high numbers of cases of data falsifications in documents belonging to Indonesian migrants. In was re open in April 2005. The destination countries in the Middle East were closed by the Government of Indonesia in March 2004 for 3 months in anticipation of the Gulf War, and from March till June 2005 to improve the placement system.
What are the costs of migrating for female migrant workers?
• Placement fees are officially stipulated by the Department of Manpower and Transmigration, but in reality the amount that migrants paid is much higher.
• The money to pay placement fee is obtained by borrowing from relatives, friends, money-lenders or the mediator who manages their departure process, or is deducted from wages upon employment.
What are the wages of Indonesian female migrant workers?
• Workers in the informal sector (such as domestic help, or caregiver of the elderly etceteras) are engaged on a contract for a work period of 2 years, after which they must go back to Indonesia. In the case of Taiwan, the contract can be extended by 1 year without having to return to Indonesia.
• Hong Kong is the only destination country that has a minimum wage regulation for migrant workers.
• Each destination country has a different wage standard. The highest wage is in Hong Kong and Taiwan, the lowest is in Malaysia.
• In reality, the wages received are lower compared to the contract value. This is because generally many employers pay monthly wages below the value that was stipulated in the contract, as well as because of various deductions to repay the placement fee.
• Based on the currency of the destination countries in nominal value, migrants do not receive increase in their wages over the years. When converted into the rupiah constant value, their wages shows a trend to decrease.
How do female migrant workers save money in the destination country?
• By the employer, and they will ask for it to be sent to their family or when they are returning to Indonesia
• By themselves, in a clothes closet or under the mattress, until they are ready to send it to their family
• In a savings account in their own name, which they close once they return home
• In the form of gold (usually if they work in Saudi Arabia or Malaysia)
How do female migrant workers remit their money?
• Formally they remit it through banks or the post office, whether personally or by asking the help of their employer or a friend.
• Informally they remit it through an Indonesian shop (specifically in Hong Kong), a middle person who specialises in the service of remitting money, through a friend or relative who is returning to the village.
• Cost of sending remittances varies, depending on the country where they are sending the money from and the way they choose to send it. For example, the cost of sending remittances through a formal channel (2003 rates) is: Malaysia Rp 25.000, Saudi Arabia Rp 12.500-20.000, Brunai Rp 100.000, Taiwan Rp 62.500-75.000 and Hong Kong Rp 20.000-35.000. To send informally, the cost is Rp. 5,000-12,000 in Malaysia, and Rp. 20,000-40,000 in Hong Kong
• Frequency of remitting is quite irregular, depending on the request of the family in the local village. Nevertheless, during 1 contract period most migrants remit 2-4 times. During the first months of the contract it is difficult for them to send money home. Since the bulk of their money goes for various deductions. Migrants in Hong Kong tent to remit money more regularly than migrants in other destination countries, and those in Malaysia face the most constraints in remitting money.
• The amount of money sent varies each time. Generally, they send Rp. 1 to 5 million at a time, if it is through a bank. This is because there are migrants who send money every 2-3 months, but there are also migrants who save first for 1-2 years. If the money is sent through a friend, then it would be between Rp. 250,000 to Rp. 2 million.
• Recipient of remittances is usually the husband or the father of the female migrant worker.
What is the value of remittances to Indonesia?
• The recorded remittances received by Indonesia were approximately US$ 1.2 billion per year from 1998 till 1999, and nearly reached US$ 2 billion in 2001. In 2002 the amount of remittances reached US$ 2.1 billion, in 2003 US$ 1.49 billion and decreased again in 2004 to US$ 1 billion in line with the decrease of the numbers of Indonesians leaving to work overseas. For 2005, it is estimated that the total remittances reached US$ 2.5 billion. In reality, the total remittance are much higher since not all in-flow are well recorded.
• The value of remittances at the national level is quite significant compared to the foreign exchange obtained from the non-oil and gas sector and agricultural exports.
How does the value of Indonesian remittances compare to other migrant sending countries?
• Nominally the value of Indonesian remittances is relative lower compared to other sending countries.
• Indonesian remittances as a percentage of GDP is also relatively lower compared to other sending countries.
Why are the Indonesian remittances relatively low?
• Many of the remittances that enter Indonesia are not detected because of inadequate recording system:
• The formal data is inadequate because remittance does not have its own category, and remittance is frequently calculated by estimating from “ all residual of balance of payment” (BOP)
• The formal data from BOP frequently only calculate the amount of wire transfer of remittance, and not the in-flow of remittance.
• The formal data frequently does not record remittances that are sent by temporary migrants (who are not permanent residents in the host country). Temporary migrants do not sent home all of their money, but bring parts of it in cash when coming home. Therefore, formal data only calculate net in-flow and not gross in-flow.
• Non-monetary goods and other valuable goods (gold from Saudi Arabia for example) are not yet included in calculating remittances.
• The wages received are relatively low because the majority of Indonesian migrant workers, particularly female migrant workers, are working in the informal sector. Since they are in a vulnerable position, they is no guarantee that they will receive their already meagre wages in full. Female migrant workers often do not receive the wages they are untitled to and even have to stop working before the contract period expired due to various problems, such as being cheated or being exposed to violent and harassment.
• There are a considerable number of illegal migrants coming home without being paid even though They have worked for months, sometimes even for more than a year.
• The high costs of placement and several types of additional costs payable by migrant workers makes it impossible for them to save and remit money in large sums.
• The difficulty to access banking services for illegal migrant workers in Malaysia made them prefer remitting their money through informal channels.
What is the role of remittances at local level?
• Remittances sent by migrant workers constitutes significant revenues for the villages where migrants originated from.
• At the sub-national level, district and provinces receive significant amount of remittances. For example, following is a comparison of regional own source of revenues ( PAD ) and remittances (in billion rupiah) at provincial and district level.
• At the community level, remittances help stimulate local economy activities, in particularly those that are responding to needs of migrant workers and their families, such as telephone kiosk, motorcycle taxi, credit for motorcycle , building material shops.
How are the remittances utilized by the migrant worker and their families?
• The quality and quantity of remittance utilization is quite varied among the several migrant workers, depending on the value of the remittances saved, sent and brought back personally.
• The major priority in the utilization of remittances is to pay off debts, to meet the daily living needs, and to build a house including buying furniture. If there is any money left after spending on the above, it will be used to buy gold, buy motor cycle, buy land, buy or lease rice fields, buy livestock and pay for the children's education. Very few succeed in investing remittances in a business venture and managing it in a sustainable manner.
• Remittances are not utilized to access better health and education services, because the above two matters are not the priority of migrant families.
• If the remittance becomes the major or the sole source of income for the migrant worker's family, it tends to be exhausted to meet daily living expenses. If the migrant workers have a sufficiently stable economic background, the remittance can be saved to enhance the family's assets
• Remittances that are used to meet various living necessities without any other source of income will usually be exhausted within 2-7 months. After that they have to resell the assets that they have and go back to the original condition or again work overseas.
Problems faced by Indonesian Workers
On September 29, 2004, The People's Consultative Assembly (DPR) of the Republic of Indonesia approved the Laws on the Placement and Protection of Indonesian Workers Overseas (Undang-Undang Penempatan dan Perlindungan Tenaga Kerja Indonesia di Luar Negeri) which was also enacted by the former Indonesian president, Megawti, two days before the end of her term as president. This law known as UU No. 39/2004 PPTKILN. The government admits that their objective behind UU No. 39/2004 was to improve the delivery and protection systems for Indonesian workers. Yet if we look at the structure of this law, UU No. 39/2004 still considers migrant workers as a commodity or an economic object. From the 109 articles in the UU No. 39/2004, only eight articles stipulate protection for Indonesian Migrant Workers. The rest of the law stipulates the trading and placement of Indonesian migrant workers.
It seems that the government's attitude is that it does not want to know the real situation of the migrant workers. It could be that they think that the number of illegal Indonesian migrant workers is not as big as the number of legal Indonesian migrant workers which was reported by the Department of Workers and Transmigration (Depnakertrans). It is public secret that besides the lack of skills among Indonesian migrant workers, the abundance of illegal Indonesian migrant workers in a number of receiving countries is also a problem which is significant in our labor world.
Those applying to migrate overseas encounter problems each phase of migration. These are the following:
• Pre-Departure
• Illegal Recruitments:
• Recruitment arranged by the illegal Suplier for the Service of Indonesian Workers (Penyalur Jasa Tenaga Kerja Indonesia – PJTKI).
• Recruitment arranged by legal PJTKI without clear job order;
• Recruitment and departure arranged by agents and not through PJTKI
• Recruitment of children below the age of 18 (youths below the age of 25 for Saudi Arabia),
• Recruitment of illiterate immigrant workers
• Counterfeiting of documents
• Trapped by usurer/creditor, etc
• During Employment
• they were not paid
• they were prohibited to keep in contact with their own families or relatives;
• they were tortured and maltreated, etc
• Returning home
• they were pressed by security at airport or harbour for various reasons;
• they were treated unjustly at airport and harbour;
• they became mentally ill and depressed, etc
Since human beings began using money as a means of payment for work, Marx's concept that work is a means for self-realization has hardly been realized. On the contrary, human beings have tended to gain as much profit as possible. This orientation towards profit often makes human beings indifferent toward others. It is then easier to exploit others and to treat them as mere instruments.
In economics, the relationship among human beings often becomes merely functional or exploitative. Human beings become alienated from their work, the product of their work, as well as from other human beings. Also, in this context, migrant workers become alienated from their own country. The country, which should be the homeland that gives protection and care for her children, in fact, treats her children as milking cows, economic objects and objects of exploitation, which bring large profits for their own country and other institutions.
Catholic's Church Programmes
To facing these situations, the Indonesia Catholic Church – through the Bishops' Conference – makes some programmes:
• to make a data base system and networking system from the parish origin of the catholic migrant worker and send it to the parish transition and the parish receiving
• preparing the candidates of migrant worker by law education, pre departure conditions, etc
• Making a periodic evaluation between parish origin, parish transition, and parish receiving.
Sources of data and informations:
• Antisipasi Perang Teluk, Penempatan TKI ke Timur Tengah Dihentikan , Kompas, 22 January 2003
• Depnakertrans Buka Kembali Penempatan TKI Ke Timur Tengah, Media Indonesia Online, 26 Maret 2005
• Depnakertrans PRediksi Pengiriman Uang TKI US$ 2 Milyar, Media Indonesia Online, 11 November 2005
• Impacts of Migration and Usage of Remittances: Seeking Ways towards Improving Female Migrant Workers' Welfare , Draft Report, World Bank Office Jakarta, 2005
• Interview with female migrant workers and their families in Sukabumi, Malang, Bone and Lombok Tengah districts, 2004-2005
• Global Economic Prospect 2006: Economic Implications of Remittances and Migration, World Bank 2005
• Ministry of Manpower and Transmigration Data
• Sukabumi Regency Data, 2004
• Sukabumi District BP2TKI Data, 2004
• NTB Province Statistical Data , 2004
• NTB Province BP2TKI Data, 2004
• Vulnerability of Indonesian Female Migrant Workers, World Bank Office Jakarta, 2003
• www.answers.com/topic/table-of-historical-exchange-rates
• www.migrationinformation.org
• www.nakertrans.go.id
• www.state.gov/documents/organization/8166.pdf
Based on the data from report of the World Bank 2004
Wisnu, Savitiri cs., 2005, Tubuh-tubuh dalam Kebungkaman Ruang Privat, Jakarta FOKER, p. 14
The Consortium of the Ddefender for Indonesian Migran Workers (KOPBUMI) had criticized this UU No. 39/2004. In all their arguments, they showed that art. 8 (f) says that every candidate of Indonesian Workers (TKI) gains right, chance, and treatment as equal as the foreign workers gain according to the rule and the legislation in the destination country. Nevertheless, in this law, there is no clear reason about the right to communicate explicity.
The Department of Workers and Transmigration, the general Director of PPTKLN noted that in 2004, the government departed 67,817 Indonesian workers – compared with data from KOPBUMI.
Per May 2004, at least, the right for operation of 24 PJTKI's was stopped because of many reasons.
The lower human resources of Indonesian migrant workers, the lower wages they will get. Of course, the migrant workers are inflicted very much. Yet , this also makes negative effect for our country because Indonesia will be known as the country producing the lowly qualified workers. So, the effect is that Indonesia has no any strong bargain position in global economy and is considered not to have power to compete because of the lack of qualified workers.
Data show the cases which were successfully recorded by KOPBUMI during 2004
The case is often experienced by those who work as Household Servants (Pembantu Rumah Tangga). Of course, it's ini contradiction against International Convention on the Protection of the Rights of all Migrant Worker and Members of Their Families, art. 13, par 2: “Migrant worker and members of their families shall have the right to freedom of expression; …. Include frredom to seek, receive and import information and ideas of all kinds, regardless of frontiers, either orally; in writing or in print, in the form of art or through any other media of their choice.”