Taiwan lifts ban on recruitment of RI workers

Adianto P. Simamora The Jakarta Post/Jakarta

Taiwan will start hiring Indonesians to work in its companies after Taipei decided to lift its two-year-old ban on the recruitment of Indonesian workers, Taiwan's Economic and Trade Office in Jakarta said on Sunday.

Taipei Economic and Trade Representative in Indonesia David Y.L. Lin told The Jakarta Post on Sunday that Indonesia and Taiwan signed a Memorandum of Understanding (MoU) in Bali on Friday on labor cooperation to lift a ban on the recruitment of Indonesian workers.

Lin was referring to the meeting between Taiwan's Minister of Labor Affairs Chen Chu and Indonesian Minister of Manpower and Transmigration Fahmi Idris.

"The two ministers witnessed the signing of the MoU," Lin said.

The MoU was signed by Lin and Ferry Yahya, chairman of Indonesia's trade and economic office in Taiwan.

Under the MoU, Indonesian workers can apply to work in Taiwan, starting on Monday.

He said that the MoU would provide a legal basis for the labor cooperation between the two countries to enhance the welfare of Indonesian workers.

Taiwan imposed a ban on the recruitment of workers from Indonesia after it received complaints regarding the exorbitant fees charged by Indonesian labor agencies.

The Indonesian government has promised to drop brokers' fees charged for each worker by 30 percent (of his/her salary) to about 40,000 New Taiwan dollars (US$1,230). The two sides also agreed on how employers and laborers should split the cost of health insurance and other fees.

"I think labor cooperation is very significant for our countries in the future," Lin told the Post.

Before the ban, about 100,000 Indonesian workers used to work in Taiwan but the number dropped to less than 35,000 due to the lack of legal agreement, he said.

"I am convinced a large number of Indonesian workers will return to Taiwan," he said.

Taiwan recruits mainly Indonesian workers for jobs in households and factories, while others work on construction sites or at hospitals.

Indonesia has no official diplomatic ties with Taiwan due to its "One China" policy. Beijing says Taiwan is part of Chinese territory and demands that other countries sever official ties with the island.

But Taiwan is Indonesia's fifth largest investor. Its investments, according to the Investment Coordinating Board (BKPM), in Indonesia reached US$13 billion through 2003. The total bilateral trade between both the countries reached $4.44 billion in 2003.