Increasing Foreign Exchange

Oct 13, 2025 by vinooalluri.com 76 views

The Economic and Social Impact of Indonesian Migrant Workers in Malaysia: A Study of the Political Economy

Introduction

The current situation of Indonesian society is still alarming, with various factors such as lack of employment, uneven development, and high population density in various regions causing unemployment in Indonesia to continue to increase. This situation encourages many individuals to migrate, especially towards Malaysia, with the hope of getting a better job as Indonesian Labor (TKI). The purpose of this article is to examine the benefits and losses of sending migrant workers to Malaysia between 2014 and 2017, and to provide a comprehensive understanding of the political economy of this issue.

The Benefits of Sending Migrant Workers to Malaysia

Sending migrant workers to Malaysia during this period had a significant economic impact on Indonesia. Some of the benefits gained include:

Stable Remittance: Every year, migrant workers send some money back to the homeland known as remittances. This money not only helps their families, but also contributes to the national economy by increasing domestic consumption. Remittances play a crucial role in supporting the livelihoods of millions of people in Indonesia, and are a significant source of foreign exchange earnings for the country.
Increasing Foreign Exchange: TKI delivery abroad contributes to increasing the country's foreign exchange. Money that comes in remittances supports Indonesia's economic stability and strengthens the rupiah exchange rate against foreign currencies. This is particularly important for Indonesia, which has a large trade deficit and relies heavily on foreign capital to finance its economic development.
Improved Training and Information Exchange: The delivery of TKI to Malaysia opens opportunities for more training programs and information exchange programs regarding work standards, which in turn can improve the quality of Indonesian workers. This can lead to better job prospects and higher earnings for Indonesian workers, both in Malaysia and in Indonesia.

The Challenges of Sending Migrant Workers to Malaysia

However, behind these profits, there are some losses that need attention. One of them is the increasing number of illegal migrant workers who depart for Malaysia. The existence of illegal migrant workers is not only risky for the workers themselves, but also harm the country in terms of potential foreign exchange loss and legal issues that arise due to immigration violations. In addition, their existence is often seen negatively by the people of Malaysia, which can worsen the image of TKI as a whole.

The Need for Regulation and Protection

Seeing these two sides, it is important for the Indonesian government to increase regulations and protection for migrant workers, as well as facilitate official paths for work migration. This will not only reduce the number of illegal migrant workers, but also ensure that migrant workers can work in safer and more guaranteed conditions. The government can achieve this by:

Strengthening Labor Laws: The government can strengthen labor laws to protect the rights of migrant workers, including their right to fair wages, safe working conditions, and social security.
Improving Training and Information Exchange: The government can improve training and information exchange programs to equip migrant workers with the skills and knowledge they need to succeed in the labor market.
Facilitating Official Paths for Work Migration: The government can facilitate official paths for work migration by simplifying the process of obtaining work permits and by providing support to migrant workers who are seeking to work in Malaysia.

Conclusion

In conclusion, sending Indonesian workers to Malaysia between 2014 and 2017 shows a complex impact. Although offering various economic benefits, the challenges faced, especially related to illegal migration, must be overcome with strategic and holistic actions. With the right steps, the benefits of sending this workforce can be more optimal and the losses experienced can be minimized. The Indonesian government must take a proactive role in regulating and protecting migrant workers, and in facilitating official paths for work migration. This will not only benefit the migrant workers themselves, but also contribute to the economic and social development of Indonesia as a whole.

Recommendations

Based on the findings of this study, the following recommendations are made:

Strengthen Labor Laws: The government should strengthen labor laws to protect the rights of migrant workers, including their right to fair wages, safe working conditions, and social security.
Improve Training and Information Exchange: The government should improve training and information exchange programs to equip migrant workers with the skills and knowledge they need to succeed in the labor market.
Facilitate Official Paths for Work Migration: The government should facilitate official paths for work migration by simplifying the process of obtaining work permits and by providing support to migrant workers who are seeking to work in Malaysia.
Increase Regulation and Protection: The government should increase regulation and protection for migrant workers, including their right to fair wages, safe working conditions, and social security.

Limitations of the Study

This study has several limitations. Firstly, the study only examined the impact of sending migrant workers to Malaysia between 2014 and 2017, and did not consider the impact of sending migrant workers to other countries. Secondly, the study only considered the economic and social impact of sending migrant workers, and did not consider the political impact. Finally, the study only considered the impact of sending migrant workers on the Indonesian economy, and did not consider the impact on the Malaysian economy.

Future Research Directions

Future research should consider the following directions:

Examine the Impact of Sending Migrant Workers to Other Countries: Future research should examine the impact of sending migrant workers to other countries, including the impact on the economy, society, and politics of the sending and receiving countries.
Consider the Political Impact of Sending Migrant Workers: Future research should consider the political impact of sending migrant workers, including the impact on the relationship between the sending and receiving countries.
Consider the Impact on the Malaysian Economy: Future research should consider the impact of sending migrant workers on the Malaysian economy, including the impact on employment, wages, and economic growth.

Conclusion

In conclusion, this study has provided a comprehensive understanding of the political economy of sending Indonesian workers to Malaysia between 2014 and 2017. The study has shown that sending migrant workers to Malaysia has a significant economic impact on Indonesia, including the generation of remittances and the improvement of training and information exchange programs. However, the study has also highlighted the challenges faced by migrant workers, including the risk of illegal migration and the need for regulation and protection. The study has made several recommendations for the Indonesian government to strengthen labor laws, improve training and information exchange programs, and facilitate official paths for work migration.
Frequently Asked Questions (FAQs) about the Economic and Social Impact of Indonesian Migrant Workers in Malaysia

Q: What is the main purpose of sending Indonesian migrant workers to Malaysia?

A: The main purpose of sending Indonesian migrant workers to Malaysia is to provide employment opportunities for Indonesian citizens, particularly those who are facing unemployment or underemployment in Indonesia.

Q: What are the benefits of sending Indonesian migrant workers to Malaysia?

A: The benefits of sending Indonesian migrant workers to Malaysia include:

Stable remittance: Indonesian migrant workers send remittances back to their families in Indonesia, which helps to support their livelihoods and contribute to the national economy.
Increasing foreign exchange: The remittances sent by Indonesian migrant workers contribute to increasing the country's foreign exchange earnings, which helps to support the rupiah exchange rate against foreign currencies.
Improved training and information exchange: The delivery of Indonesian migrant workers to Malaysia opens opportunities for more training programs and information exchange programs regarding work standards, which can improve the quality of Indonesian workers.

Q: What are the challenges faced by Indonesian migrant workers in Malaysia?

A: The challenges faced by Indonesian migrant workers in Malaysia include:

Risk of illegal migration: Indonesian migrant workers who are not properly documented or registered may face the risk of being deported or arrested by Malaysian authorities.
Poor working conditions: Indonesian migrant workers may face poor working conditions, including long working hours, low wages, and inadequate social security.
Limited access to social services: Indonesian migrant workers may have limited access to social services, including healthcare, education, and social welfare programs.

Q: What can the Indonesian government do to protect the rights of Indonesian migrant workers in Malaysia?

A: The Indonesian government can take several steps to protect the rights of Indonesian migrant workers in Malaysia, including:

Strengthening labor laws: The government can strengthen labor laws to protect the rights of Indonesian migrant workers, including their right to fair wages, safe working conditions, and social security.
Improving training and information exchange: The government can improve training and information exchange programs to equip Indonesian migrant workers with the skills and knowledge they need to succeed in the labor market.
Facilitating official paths for work migration: The government can facilitate official paths for work migration by simplifying the process of obtaining work permits and by providing support to Indonesian migrant workers who are seeking to work in Malaysia.

Q: What can be done to reduce the number of Indonesian migrant workers who are involved in illegal migration?

A: Several steps can be taken to reduce the number of Indonesian migrant workers who are involved in illegal migration, including:

Improving awareness and education: The government can improve awareness and education among Indonesian citizens about the risks and consequences of illegal migration.
Providing alternative employment opportunities: The government can provide alternative employment opportunities for Indonesian citizens, particularly those who are facing unemployment or underemployment.
Strengthening law enforcement: The government can strengthen law enforcement efforts to prevent and prosecute cases of illegal migration.

Q: What is the impact of sending Indonesian migrant workers to Malaysia on the Indonesian economy?

A: The impact of sending Indonesian migrant workers to Malaysia on the Indonesian economy is significant, including:

Increased remittances: The remittances sent by Indonesian migrant workers contribute to increasing the country's foreign exchange earnings, which helps to support the rupiah exchange rate against foreign currencies.
Improved economic growth: The delivery of Indonesian migrant workers to Malaysia can contribute to improved economic growth in Indonesia, particularly in the sectors of construction, manufacturing, and services.
Reduced unemployment: The delivery of Indonesian migrant workers to Malaysia can help to reduce unemployment in Indonesia, particularly among young people and those who are facing unemployment or underemployment.

Q: What is the impact of sending Indonesian migrant workers to Malaysia on the Malaysian economy?

A: The impact of sending Indonesian migrant workers to Malaysia on the Malaysian economy is significant, including:

Increased labor supply: The delivery of Indonesian migrant workers to Malaysia can help to increase the labor supply in Malaysia, particularly in the sectors of construction, manufacturing, and services.
Improved economic growth: The delivery of Indonesian migrant workers to Malaysia can contribute to improved economic growth in Malaysia, particularly in the sectors of construction, manufacturing, and services.
Reduced labor costs: The delivery of Indonesian migrant workers to Malaysia can help to reduce labor costs in Malaysia, particularly in the sectors of construction, manufacturing, and services.

Q: What are the implications of the study for policy makers and stakeholders?

A: The study has several implications for policy makers and stakeholders, including:

Need for stronger labor laws: The study highlights the need for stronger labor laws to protect the rights of Indonesian migrant workers in Malaysia.
Need for improved training and information exchange: The study highlights the need for improved training and information exchange programs to equip Indonesian migrant workers with the skills and knowledge they need to succeed in the labor market.
Need for facilitated official paths for work migration: The study highlights the need for facilitated official paths for work migration to reduce the number of Indonesian migrant workers who are involved in illegal migration.