Observer: Remittances could rise significantly if migrant workers follow official procedures
Jakarta (ANTARA) - Andrea Azzqy, a lecturer in International Relations at Budi Luhur University, believes that the potential for additional remittances from Indonesian Migrant Workers (PMI) could increase significantly if placements through official channels continue to rise.
“If placement through official channels continues to increase, the potential for additional remittances could rise significantly because fund flows are more monitored and transaction costs are more efficient,” said Andrea when contacted by ANT_ARA in Jakarta on Friday.
Furthermore, Andrea noted that if prospective migrant workers secure jobs with higher wages and better protection, the impact on national remittances will be directly felt within the next 3 to 5 years.
“Inefficient placement systems and non-procedural routes represent a massive leakage of economic value, which could potentially amount to tens of trillions of rupiah every year,” said Andrea, adding that valid statistical data is required to conclude the total value of such losses.
Regarding destination countries, Andrea assessed that the greatest prospects remain in East Asia, including Hong Kong, Taiwan, Japan, South Korea, and the Middle East.
“Meanwhile, sectors with high economic value include healthcare, such as nursing and elderly care, manufacturing, and construction services,” he added.
Nevertheless, Andrea also emphasised that remittances are a reflection of a country’s ability to protect its citizens working abroad.
“Remittances are not merely money transfers, but a mirror of the state’s capacity to protect its citizens and transform migration into an economic force,” said Andrea.
In 2025, Bank Indonesia recorded that the total value of national migrant worker remittances surged to Rp288.1 trillion (approximately 16 billion USD), a 14 per cent increase compared to the 2024 achievement of Rp253.3 trillion.
Meanwhile, based on preliminary data from Bank Indonesia in the Indonesian Economic and Financial Statistics (SEKI), migrant worker remittances in the first half of 2026 reached 9.1 billion USD.
This figure represents an 8.74 per cent increase compared to the same period last year, where migrant worker remittances reached 8.4 billion USD by the second quarter of 2025.
Bank Indonesia’s Indonesian Economic and Financial Statistics (SEKI) for 2025 reported that Malaysia and Saudi Arabia were the largest contributors to migrant worker remittances throughout 2025, reaching 4.77 billion USD and 3.99 billion USD respectively.
Taiwan followed with 2.97 billion USD, followed by Hong Kong at 2.63 billion USD, while South Korea and Japan were recorded as smaller contributors, at 716 million USD and 651 million USD respectively.