Indonesia and Malaysia strike deal on labor recruitment

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.