Tulungagung residents earn more abroad

Tulungagung residents earn more abroad

Didik Kusbiantoro, Antara, Surabaya

The success stories of residents in several villages in Kalidawir district, Tulungagung, working abroad have long been heard, changing the once poor district into a wealthy one.

Now, most residents live comfortably in good houses filled with expensive household goods, cars, motorcycles and healthy deposits in several banks.

The district is now famed for its newly rich residents, most of whom used to be farm workers with low wages, who are now turning into workers with million-rupiah salaries.

In Tanjung village, for instance, 200 of its 3,000 residents went to Malaysia to work, either legally or illegally. Some of them preferred to stay in the country, returning home once a while to meet their relatives or to take back money.

The success story of the residents of the village, however, has not only improved its economic well-being, but also caused an escalation in land prices and difficulty in finding workers.

Tanjung village resident Mohammad Yusup, 65, said that the price of land in his village had jumped.

"According to our land tax, land values here are only about Rp 7,500 but now it's offered at Rp 100,000 per square meter. Imagine that!" he said.

High land prices are the result of the newly wealthy residents' strong desire to invest money earned from working abroad to buy land to establish plantations or build houses.

Other villages have also experienced a similar phenomenon. Once residents in Domasan, Joho or Betak villages realized that those interested in buying their land were successful residents who had worked abroad, they instantly raised the price of land.

"Now, ordinary people with not so much money can no longer afford to buy land, although most of the residents who have been working on farms for a long time have been saving money to buy land of their own. With high land prices, their dreams have evaporated," Yusup said.

Tanjung village head A. Makit said land prices in his area had escalated in the last year, as many of his residents, who had been successful working abroad, had started to invest their money in land.

"Before, land here was worthless because it flooded almost every year, destroying paddy fields and the harvest," he said.

Apart from high land prices, hiring workers to work in paddy fields now means paying more money too as many men are now reluctant to work in the fields and prefer to work abroad.

Before, a worker was paid only Rp 7,000 to Rp 8,000 per day, but now, their daily wage has increased, to Rp 12,000 to Rp 15,000 per day. The steep increase in worker's wages started with the economic crisis, when each worker was paid Rp 4,000 to Rp 5,000 per day before it increased to Rp 7,000 to Rp 10,000.

"Worker have been paid Rp 15,000 at this year's planting season, and when harvest time comes, the price might increase again," said Sokip, 50, a resident of Betak village.

As successful workers return home with more money, many of their relatives, who earlier worked as workers, now own paddy fields, or have set up new businesses, such as builders' merchants or motorcycle dealerships.

"They (the relatives) are saving the money sent by their husband or children who work abroad, and then buy paddy fields or set up new businesses. This makes it hard to find workers in the villages," Sokip said.

Success stories of the workers abroad even attracted more to join them, according to Joho village resident, Kento, 42.

"The success stories of their neighbors made many farmers and men in the villages want to work abroad too, even though some were not successful," Kento said.

He said that local residents preferred to work abroad because of the high pay they would get there, instead of working in plantations or factories.

For instance, he said, a construction worker in Malaysia could earn Rp 90,000 to Rp 100,000 per day, while workers in the village earned only Rp 15,000 per day.

In the end, many owners of paddy fields had to hire workers from other areas, such as Trenggalek, Blitar, Ponorogo and Pacitan.

In economic terms, Tulungagung people who have worked overseas have contributed much by way of foreign exchange earnings. Data from the local manpower office states the workers sent home an estimated Rp 175 billion per year. In fact, the regional income of the area is about Rp 20 billion per year. So far, it is estimated there are 30,000 to 40,000 Tulungagung residents working overseas, legally or illegally.

East Java Governor Imam Utomo acknowledged that Tulungagung is one of the main contributor of foreign exchange in that sector compared with other areas in the province.

According to him, sending workers abroad is one ofthe better alternatives in the face of limited ability to provide job opportunities there, and to reduce the unemployment rate.

"But the workers should be processed properly and we should also pay attention to their quality," the governor said.

According to the province's manpower office, East Java sent 37,888 workers to various countries abroad, generating more than Rp 2.4 trillion in foreign exchange income. This year, the province has set a target of 40,000 workers.