Banks to help Indonesians work obroad

Banks to help Indonesians work obroad

Ridwan Max Sijabat, Jakarta

Frustrated by complicated problems in labor export, Minister of
Manpower and Transmigration Jacob Nuwa Wea has sought the support
of several private and state-owned banks to provide credit
schemes for Indonesians working overseas.

"The bank credit, ranging from Rp 10 million (US$1,149) to Rp
30 million, would cover recruitment and training fees, necessary
documents and plane tickets. Workers would enjoy a very low
interest rate, and the repayment of their credit would not
overburden them and their families," Nuwa Wea told The Jakarta
Post at his office here on Wednesday.

Nuwa Wea said, that with the implementation of the bank credit
scheme, workers would no longer depend on usurers in rural areas
who had obtained excessive interest, nor on certain labor
exporters covering workers' recruitment and training fees.

He declined to identify the banks because they were still
discussing common requirements for the credit scheme, but said
the credit scheme was expected to be of mutual benefit, both to
the workers and the banks.

"Under the present practice, most workers do not enjoy their
first year of working overseas as a big part of their monthly
salary is cut to pay their debts to labor exporters and usurers,"
the minister said.

He acknowledged that labor exporters had partially been
responsible for violence against Indonesian workers employed
abroad as they had treated the workers like commodities.

"Workers have been charged recruitment and training fees but,
in fact, they have often been subjected to inhumane treatment and
are not trained adequately before they are employed. Many labor
exporters have even manipulated the documents of workers who go
home, or die, so that new workers can avoid the obligatory
training, which only lands them in trouble with their employers,"
he said.

The minister also defended his recent unprecedented measure to
suspend the operation of 25 labor-supplying companies that were
found unprofessional, despite the strong protest of their
association.

"We are even considering suspending the operation of more than
40 other labor-supplying companies for their frequent violation
of Ministerial Decree No. 104/2002 on labor-export procedure," he
said. He added that most of the 25 companies had no training
center and, thus, sent untrained workers abroad.

Nuwa Wea said, that if the labor exporters objected to the
imposed punishment, they could file a complaint with the police,
take the matter to the State Administrative Court or sue him.

Many labor exporters and their associations have protested the
minister's action, saying relevant officials of the Manpower and
Transmigration Ministry had refused to clarify the alleged
violations.

Asked about the draft law on workers' protection overseas, the
minister said the bill was "still on President Megawati
Soekarnoputri's table at the State Palace".

"We are still waiting for her (Megawati's) approval to submit
it to the House of Representatives for deliberation," he said,
adding that he was optimistic that the bill would be enacted
before Megawati's tenure ends in October.