Migrant Workers & Challenge In Indonesia

Paper presented by Indonesian ( CITU & SPSI )

ILO ~ATUC WORKSHOP

Hotel Aryaduta, 20~24 August Jakarta

Indonesia Geography Location in Southern Asia, Archipelago between the

Indian Ocean and Pacific Ocean ( map reference : Southeast Asia )

Area : Total : 1.919.440 sq km• Land : 1.826.440 sq km• Water : 93.000 sq km

Land Boundaries : – East Timor : 228 km– Papua New Guinea : 820 km– Malaysia : 1782 km

Water Boundaries : – Singapore, India, Philippine,Australia, Vietnam, etc.

Natural Hazards :– Occasional floods, Severe drought, Tsunami, Earthquake,

Forest Fire etc. Environment Current Issues:

– Deforestation, Water pollution from industrial waste, Sewage, Air Pollution in urban area, smoke and haze from forest fire

People of Indonesia– Population : 245.452.739 ( Statistic office)– Age structure : 0~14 years: 28 %

15~ 64 years : 65.8 % ( male : 80.796.794 & Female : 80.754. 238

65 and over : 5.4 % Life Expectancy :

– Male : 67.42 years & Female : 72.45 years

Ethnic Group : • Javanese : 45 %, Sundanese : 14 %, Madurese : 7 % Coastal

Malay 7.5 % and Others : 26 %

Administrative Division : 30 Provinces Economy : Indonesia has continuous struggled to

overcome complicated problems and facing challenges like : Financial Crisis, grappling with unemployment , fragile banking sector, endemic corruption, inadequate infrastructure, poor investment climate, unequal resource distribution among regions, now oil import state due declining production and lack of new eploration

GDP ( Purchasing power parity ): $ 869.7 Billion ( 2005 est )

GDP ( official exchange rate ) :$ 270 GDP per capita (ppp) $. 3600 (2005 est) GDP –Composition by sector

– Agriculture : 13.4 %, Industry : 45.8 %– Service : 40.8 ( 2005 est)

Labor Force : 94.2 million– Labor Force by occupation : agriculture : 46.5 %,

Industry : 11.8 % & services : 47.7 %– Unemployment Rate : 11.8 % & Population below

poverty : 16.7 %

Economic Review

Government’s Trend Policy Prologue

– As the world’s largest archipelago the fifth biggest populated state and it is grouped into developing country therefore the problems of the nation is quite complicated.

– The distribution of population as well as the distribution of infrastructure is not well organized. This create the gap between western and eastern part of country

The mainly prioritized program of ruling government is how to alleviating poverty, Support Investment in real sector and Creating Job Opportunity

To provide business in conducive climate

Law economic reformed policy Conducive Fiscal policy to support

economic stimulus Micro Mid Business Unit Development

Policy Agribusiness & Agriculture policy Industry National Policy Export, Int’l Trade and Investment Policy Reformed & Restructure State Owned

Company

Key Points / conclusions :

Economic Growth is quite slow moving and is still generated in consumptive based.

Performance in investment is still serious question mark

High birth rate & Unemployment is quite high

Migrant Workers !!!

Limited for job opportunity and un-ability of Gov to accommodate job for work force have pushed people to find their solution.

Region of Middle East and Malaysia for instance is the place of workers’ hunting .

Low education background , workers work in informal sectors

What happened today it still connected to the past. Indonesia ~ Malaysia relation have been deeply rooted. Culture aspect such Language, Religion, ways of life , family still linked closely. These are as tools for working in out of border. Now it is so called Migrant workers.

Early 1980, High speed of population growth in Indonesia and High speed in economic booming & infrastructure has become symbiosis mutualism

Sector Based job in Malaysia : Plantation, Commercial Agriculture Enterprise, Building Construction, domestic servant etc

Role of The Government

To organize the legal workers status, both Indonesia~ Malaysia Gov agreed that Labor Suppliers is authorized parties to handle this matter. Ideally this mobilization of workers get better protection their rights in works place.

At the same time in the middle east region ( Saudi Arabia Kuwait) need a plenty also workers in informal sector

Number of Workers Sent Abroad

Number of Workers Sent Abroad

1995 29,712 47,524 43,367 120,603

1996 38,652 122,654 58,946 220,252

1997 317,685 126,347 58,945 502,977

1998 95,033 193,937 91,203 380,173

1999 169,177 154,636 103,841 427,654

2000 191,700 130,114 136,062 457,876

2001 110,490 121,388 107,322 339,200

2002 152,680 241,961 87,055 481,696

2003 89,439 183,770 20,485 293,694

2004 127,175 219,699 33,816 380,690

2005 77,161 50,589 25,243 152,993

Source : Derectorate General of Overseas Employment, DOMT 2005

TotalTo Other CountriesYear To Malaysia To Middle East

Country Destination Male Female Total

Brunei Darusaalam 2,515 3,988 6,503

Hongkong 2 14,183 14,185

Korea 2,416 508 2,924

Malaysia 62,658 64,517 127,175

Singapore 33 9,098 9,131

Taiwan 810 159 969

Others Asian Countries 85 - 85

Kuwait 1,235 14,754 15,989

Emirate Arab 94 39 133

Saudi Arabia 14,156 189,290 203,446

Other Middle East Countries 54 77 131

European Countries - 4 4

Other Countries 17 - 17

T O T A L 84,075 296,617 380,692

Indonesian Workers Sent Abroad

Items Asia Pacific To Middle EastTo Other Countries

Total

Formal Sector 115,306 921 20 116,247

Male 68,022 609 17 68,648

Female 47,284 312 3 47,599

Informal Sector 45,664 218,778 1 264,443

Male 497 14,930 - 15,427

Female 45,167 203,848 1 249,016

Total 160,970 219,699 21 380,690

Male 68,519 15,539 17 84,075

Female 92,451 204,160 296,611

Source : Derectorate General of Overseas Employment, DOMT 2005

Indonesian Workers Sent AbroadBy Sex and Sector 2005

The Problems Stage of Migrant Workers

Migration Step– Uncertainty of Women Migrant Workers

Recruitment & Before Leaving– Informal Procedure & ( Trafficking Human)– Administration Cost High– Deception & Blackmail performed by agents (brokers)– Fictive Job opportunity – Un-match Training Program– Bad manner conducted by agents in their lodging – Totally they are not as migrants– Fictive identity of migrant workers– Less Info regarding procedures & conditions

On The Way– Flight / travel ticket is too expensive– Unregistered Transportation– Dangerous Travel– High Risk at transit

Working and Living Condition at Overseas– Substituting & violation contract agreement– Work relation is dependency because all document under

control / kept employers / suppliers– Worst living & working condition– Health & safety in high risk situation and less protection– Unpaid salary & cut off – Bad performance & physical , Psychic & sexual violation

– Less & lost communication– No access for information– Embassy responsibility is low

Termination of Contract– Termination is not legal binding– Sudden severance– No place / shelter before returning their home countries– No procedure for grievance & dispute

Return & Reunite– No income resource– Blackmail & Over budget performed by illegal agents at the airports,

customs Office, money changers etc– Bankrupt, family adaptation– Thread to be trafficking

The Role of Trade Union

It is realized that Trade Union Organizations facing great barrier and problems in organizing migrant workers. In this way, Int’l Trade Unions have stronger power to touch issues of protection and promoting their right.

Cooperation and joint agreement is key point to control issues of migrant workers. Good things have been done between Confederation of Indonesian Trade Union (CITU) & Malaysian Trade Union Congress (MTUC).

This initiative sponsored by ITUC ( Intl’ Trade Union Congress ) to uphold Special Action Programs ( SAPs) such as migrant workers.

In Future partnership agreement of migrants workers should be often reviewed discussed so that the promoting and protecting of migrants workers is increasingly better.