Indonesia and Malaysia strike deal on labor recruitment

Dewi Santoso, Jakarta

As of Aug. 10, 2004, Malaysian employers will be required to hire Indonesian migrant workers directly from authorized Indonesian labor exporting companies and pay the workers the prevailing wage of around RM 1,000 (US$262.42) per month.

The condition is stipulated in the long-awaited Memorandum of Understanding (MOU) signed here on Monday by Indonesian Minister of Manpower and Transmigration Jacob Nuwa Wea and Malaysia's Minister of Human Resources Fong Chan Oan.

"Malaysia has a long relationship with Indonesia. This MOU is to ensure the proper recruitment of Indonesian workers, their quality and readiness to conform with Malaysian law, customs and culture," said Fong.

Nuwa Wea shared the opinion, saying: "With this MOU, both countries settle for a win-win solution. Therefore, we hope there will be no more illegal Indonesian migrant workers entering Malaysia."

Prior to the MOU, Indonesian migrant workers were hired by their employers through Malaysian recruitment agencies. This practice had prompted many middlemen to take advantage of Indonesian migrant workers, who were desperately seeking jobs, by sending them illegally to Malaysia.

As a result, according to Nuwa Wea, the number of illegal Indonesian migrant workers had increased to more than 500,000, of which 586,000 were legal migrants.

The MOU is expected to significantly reduce the number of illegal migrant workers as it will also require the workers to have certain qualifications, in accordance with their respective fields of work.

"The workers will be trained by labor recruitment agencies before their departure. How long the training is will depend on the employers, who will bear the cost of the training," said Nuwa Wea.

However, the minister did not elaborate on the kind of training that would be provided. "It will depend on users' demand," he said.

Employers usually demand workers on short notice, giving recruitment agencies little chance to train workers specifically.

The MOU allows only migrants workers with insurance to work in Malaysia. Under the agreement, however, the workers are not allowed to bring their family members along with them. Prior to embarkation, workers also have to present their health insurance policy to immigration officers.

However, with Indonesian immigration officers widely known for their corrupt image, the effectiveness of the new policy remains in question.

Under the MOU, Indonesian migrant workers are allowed three years for their first contract. This must be in accordance with the length of stay acquired from the Malaysian immigration office.

They can later extend their contract for a maximum of two years, with a further five-year extension also possible.

Meanwhile, both the Indonesian and Malaysian governments also agreed to deport some 500,000 illegal Indonesian migrant workers to Indonesia.

"Their deportation will be conducted gradually, and we may ask the Malaysian government to share the expense with us," Nuwa Wea said.

He said Indonesia would deploy ships to pick up the illegal workers, with the Malaysian government paying for fuel.

Fong gave no response to Nuwa Wea's proposal.

The MOU was signed after three senior official meetings in Kuala Lumpur in December 2002 and January 2003, and in Semarang in December 2003. The two parties had not reached an agreement in the first two encounters.