Indonesian Political, Business & Finance News

State firm to handle workers for Malaysia

| Source: JP

State firm to handle workers for Malaysia

JAKARTA (JP): The government has appointed state-owned PT Bina
Jasa Adikarya (Bijak) as the sole company allowed to send
Indonesian workers to Malaysia, a move designed to instill order
in the lucrative yet chaotic business of exporting workers.

Under the regulation, any licensed manpower supplier company
is permitted to recruit workers bound for Malaysia, but it has to
arrange their departure and arrange contracts with Malaysian
employers through PT Bijak.

The rule does not apply for domestic helpers, which are still
in great demand in Malaysia. All labor export companies are free
to directly export domestic helpers to Malaysia.

The Association of Labor Export Companies has given a cautious
welcome to the ruling, stressing that the state monopoly "should
play fair".

"PT Bijak should not take all the orders given to Indonesia by
Malaysia," the association's deputy chairman, Anthon Sihombing,
said on Monday. "It has to share the orders with other
companies."

The appointment of PT Bijak as the sole agency to supply
workers to Malaysia follows an agreement struck by the two
governments to control the flow of Indonesian workers into
Malaysia.

The presence of hundreds of thousands of illegal Indonesian
workers has created problems on both sides of the border. Given
their illegal status, many workers are subject to severe
exploitation by their employers.

"Under the bilateral agreement, the two countries can discuss
labor protection, skills and the wage system for the Indonesian
workers in Malaysia," Anthon said.

On the Malaysian side, Kuala Lumpur has appointed a government
task force to handle Indonesian workers sent by PT Bijak and
place them at various employment agencies. These agencies will
send the workers to work in the manufacturing, plantation or
construction sectors.

Anthon said the move is expected to eliminate the operation of
unauthorized labor agencies that have been sending workers from
Indonesia to Malaysia through illegal channels.

Over one million Indonesians are currently working in Malaysia
to take advantage of its rapidly booming economy. About half of
them are working illegally. (rms)

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