KP2MI Calls for Optimising KUR to Ease Migrant Worker Placement

Jakarta (ANTARA) – The Ministry for the Protection of Indonesian Migrant Workers (KP2MI) is urging the optimisation of People’s Business Credit (KUR) disbursements for migrant worker placement to improve access to financing for prospective Indonesian migrant workers (CPMI).

According to a KP2MI press release, the ministry’s commitment was conveyed by Minister for the Protection of Indonesian Migrant Workers Mukhtarudin at a coordination meeting on optimising KUR for migrant worker placement at the KP2MI office in Jakarta on Wednesday.

Mukhtarudin said that improving access to financing was necessary to ensure prospective migrant workers had adequate funds before leaving to work overseas, while also preventing them from falling into the trap of illegal and high-interest loans.

“Optimising financing is important to support the SMK Go Global programme and to prevent prospective Indonesian migrant workers (CPMI) from becoming entangled in illegal or high-interest loans that could burden them before they start work,” he said.

Mukhtarudin said the KUR facility for Indonesian migrant worker placement had reached Rp443.5 billion, supported by 20 participating banks. Disbursement has reached 84.5 per cent.

He said the financing scheme was an important instrument for supporting the SMK Go Global programme, which aims to prepare skilled workers to take advantage of job opportunities overseas.

The government has allocated around Rp1 trillion through the state budget to build prospective migrant workers’ capacities under the programme, he explained.

However, government support needs to be expanded so that it covers not only training and skills development, but also the costs of departure.

Expenses to be taken into account include medical check-ups, travel tickets and various administrative requirements, which vary according to the destination country.

“In some countries, placement costs are covered by the employer, but there are also cost components that prospective migrant workers still have to meet themselves,” he said.

Mukhtarudin said limited financial resources could hinder CPMI who had completed their training and secured overseas job opportunities. This could push them to seek informal loans, including illegal loans with high interest rates.

KUR for migrant worker placement is therefore expected to provide a more affordable, secure and compliant financing option, so prospective workers are not burdened with debt before earning an income in their destination country.

Mukhtarudin said he hoped disbursement of the credit would continue to increase, particularly to support SMK Go Global participants who had secured overseas job opportunities.

To facilitate financing, KP2MI will also provide banks with data on Indonesian migrant worker placement agencies (P3MI) that have the highest accreditation rating.

He also praised Bank Syariah Indonesia’s (BSI) KUR financing scheme, which does not require a guarantor.

He said he hoped coordination between institutions would resolve technical obstacles to disbursing KUR to programme participants.

The government will also prepare joint outreach materials and official guidance on the scheme’s disbursement procedures, ensuring prospective migrant workers, placement agencies and banks share a common understanding of the requirements, application stages and financing arrangements.