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LABOUR MIGRATION FROM INDONESIA IOM is committed to the principle that humane and orderly migration benets migrants and society. As an intergovernmental body, IOM acts with its partners in the international community to assist in meeting the operational challenges of migration; advance understanding of migration issues; encourage social and economic development through migration; and uphold the human dignity and wellbeing of migrants. This publication is produced with the generous nancial support of the Bureau of Population, Refugees and Migration (United States Government). Opinions expressed in this report are those of the contributors and do not necessarily reect the views of IOM. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior written permission of the publisher: International Organization for Migration Mission in Indonesia LABOUR MIGRATION FROM INDONESIA Sampoerna Strategic Square, North Tower Floor 12A Jl. Jend. Sudirman Kav. 45-46 An Overview of Indonesian Migration to Selected Destinations in Asia and the Middle East Jakarta 12930 Indonesia © 2010 International Organization for Migration (IOM) IOM International Organization for Migration IOM International Organization for Migration Labour Migration from Indonesia TABLE OF CONTENTS ACKNOWLEDGMENTS vii PREFACE ix EXECUTIVE SUMMARY xi ABBREVIATIONS AND ACRONYMS 1 INTRODUCTION 3 Purpose 3 Terminology 3 Methodology 4 Structure of the Report 5 Regional and International Cooperation 5 The Global Forum on Migration and Development (GFMD) 6 The Ministerial Consultations for Asian Labour Sending Countries (The Colombo Process) 6 Ministerial Consultation on Overseas Employment and Contractual Labour for Countries of 6 Origin and Destination in Asia (The Abu Dhabi Dialogue) The ASEAN Declaration on The Protection and Promotion of the Rights of Migrant Workers 6 International Labour Migration 7 Labour Migration Challenges 7 Demand for Lower Skilled Labour 7 Irregular Migration 7 Tracking in Persons 7 Gender and Migration: The Feminization of Labour Migration 8 PART 1: LABOUR MIGRATION FROM INDONESIA 9 Overview of Labour Migration from Indonesia 9 Overview of the Legal Framework covering Indonesian Labour Migration 11 Policies Prior to the Enactment of Law No. 39/2004 12 Ministerial Decree No. 204/1999 12 Ministry of Manpower and Transmigration Ministerial Decree No. 104A/2002 12 Introduction of Law No. 39/2004 13 The Structure of Law No. 39/2004 13 Limited Scope of Protection 13 Shortcomings of Law No. 39/2004 14 Regulation of The Ministry of Foreign Aairs No. 4/2008 14 Key Government Stakeholders 14 Lack of Clarity Regarding Jurisdiction Amongst Government Agencies 15 iii Labour Migration from Indonesia Labour Migration from Indonesia Lack of Transparency in Coordination Between Government Agencies 15 PART 2: THE CONDITIONS OF INDONESIAN LABOUR MIGRANTS IN FOUR DESTINATION COUNTRIES 41 Rights of Family Members of Labour Migrants 16 Malaysia 41 Bilateral, Regional and International Cooperation 16 Labour Migration Overview 41 The Challenges of Managing Migration in Indonesia 17 Irregular Migration in Malaysia 43 Irregular Migration 17 Malaysian Government Policy on Labour Migration 44 The Impact of Irregular Migration 18 Issues Faced by Indonesian Labour Migrants in Malaysia and Their Implications 46 Tracking in Persons 18 Problems of Violence and Violations of Workers’ Rights 46 Law No. 21/2007: The Eradication of the Criminal Act of Tracking in Persons 20 Tracking in Persons 47 Government Coordination 21 Sector-Specic Problems 47 Presidential Regulation No. 81/2006 21 Plantation Workers 47 Access to Finance (Loans, Savings and Remittance Options) 22 Domestic Workers 47 Placement System for Indonesian Labour Migrants according to Law No. 39/2004: Pre-Departure Phase 22 Construction and Services 47 The Centralization of Pre-Departure Activities 23 The Dilemma of Resolving Legal Problems in Malaysia 48 The Impact of Centralization on Pre-Departure Activities 24 Malaysian Government Measures to Improve the Management of Labour Migration 49 The ‘One Gate’ System 25 Indonesian Embassy in Malaysia 49 Batam’s ‘One Gate’ System 25 Policy Response by Indonesian Embassy in Malaysia 51 Integrated One-Gate Service in West Nusa Tenggara 26 Singapore 53 Government Insurance System 26 Labour Migration Overview 53 The Tasks and Responsibilities of Recruitment Agencies 27 Demand for Foreign Labour 54 Migrant Worker Documentation 27 Singaporean Government Policy on Labour Migration 54 Recruitment of Labour Migrants 28 Issues Faced by Indonesian Workers in Singapore and Their Implications 55 Training and Education Programmes 29 Policy Responses in Singapore for Indonesian Labour Migrants 58 Placement Costs 31 Singaporean Government Measures to Improve the Management of Labour Migration 58 The Role of Government in Supervising the Performance of Recruitment Agencies 32 Policy Response by Indonesian Embassy in Singapore 59 Protection for Indonesian Workers: During and After Working Abroad 34 Services Available for Labour Migrants 59 Services Provided by Indonesian Government Representatives in Destination Countries 34 Singaporean Government Services for Labour Migrants 59 Return Services for Indonesian Labour Migrants 35 Indonesian Embassy in Singapore 60 Assistance with Business Capital 35 Kuwait 63 Limited Geographic Coverage of Government Intervention 36 Labour Migration Overview 63 Re-Emigration 36 Demand for Foreign Labour 64 Case Handling and Legal Aid at Home 38 Kuwaiti Government Policy on Labour Migration 64 Lack of Awareness of the Rights of Labour Migrants 38 Issues Faced by Indonesian Labour Migrants in Kuwait and Their Implications 66 Key Findings and Recommendations 39 iv v Labour Migration from Indonesia Labour Migration from Indonesia ACKNOWLEDGMENTS Policy Responses in Kuwait for Indonesian Labour Migrants 69 Kuwait Home Helper Operating Company 69 This report incorporates research conducted by a team of researchers from the International Organization for Migration (IOM) and Stine Laursen. Members of the Government of Indonesia-led study visit delegation, MoU Between Kuwait and Indonesia 70 the working group and other stakeholders involved in the study visits and consultation meetings were consulted in the preparation of this report. Push for Labour Law to Include Domestic Workers 70 Services Available for Labour Migrants 70 IOM Indonesia wishes to thank the following Indonesian Government ministries and agencies for their support and participation in this project: the Coordinating Ministry for Economic Aairs, the Coordinating Government of Kuwait 70 Ministry for People’s Welfare, the State Ministry of Women’s Empowerment and Child Protection, the Ministry of Manpower and Transmigration, the Ministry of Foreign Aairs, the Ministry of Home Aairs, Ministry of Social Aairs, Indonesian Embassy in Kuwait 70 Ministry of Interior Aairs, Ministry of Planning and the National Authority for the Placement and Protection of Bahrain 73 Indonesian Overseas Workers (BNP2TKI). Acknowledgment is also extended to the following organizations: The Institute for Ecosoc Rights, Migrant Care Indonesia, Migrant Care Malaysia, the Task Force on ASEAN Migrant Labour Migration Overview 73 Workers, the Association of Recruitment Agencies for Indonesian Migrant Workers (APJATI), Indonesia Employment Agencies Association (IDEA) and the Insurance Consortium of Indonesian Migrant Worker Protection. Demand for Foreign Labour 74 Bahraini Government Policy on Labour Migration 74 IOM Indonesia would also like to thank the following governments for their support in making it possible to undertake study visits to Malaysia, Singapore, Kuwait and Bahrain: the Government of Malaysia’s Ministry of Issues Faced by Indonesian Labour Migrants in Bahrain 75 Human Resources, the Government of Singapore’s Ministry of Manpower; the Government of Kuwait’s Ministry of Foreign Aairs, Ministry of Social Aairs and Labour and Ministry of the Interior; the Kingdom of Bahrain’s Policy Responses in Bahrain for Labour Migrants 76 Ministry of Foreign Aairs, Ministry of Social Aairs, Ministry of Interior and the Labour Market Regulatory Services Available for Indonesian Labour Migrants 77 Authority (LMRA); and the embassies of the Republic of Indonesia in Malaysia, Singapore and Kuwait and the Indonesian Consular Oce in Bahrain. Government of Bahrain 77 Lastly, IOM is grateful for the nancial support that the United States Government’s Department of State’s Bureau Indonesian Consulate in Bahrain 78 for Population, Refugees and Migration (PRM) provided for this study. Key Findings and Recommendations 78 RECOMMENDATIONS 81 Short-Term Recommendations for Indonesia 81 Short-Term Recommendations for Destination Countries 83 Long-Term Recommendations for Indonesia 83 Long-Term Recommendations for Destination Countries 84 APPENDIX I: LEGAL PLACEMENT PROCESS FOR INDONESIAN LABOUR MIGRANTS 85 APPENDIX II: KEY INDONESIAN GOVERNMENT AGENCIES INVOLVED IN MIGRATION MANAGEMENT 86 APPENDIX III: REASONS FOR WARNING AND SUSPENDING INDONESIAN RECRUITMENT AGENCIES 88 APPENDIX IV: ARRIVAL SERVICES FOR RETURNING LABOUR MIGRANTS AT TERMINAL IV 89 AT SOEKARNO-HATTA INTERNATIONAL AIRPORT APPENDIX V: NGOS / CIVIL SOCIETY ORGANIZATIONS IN MALAYSIA 90 APPENDIX VI: NGOS / CIVIL SOCIETY ORGANIZATIONS IN SINGAPORE 91 APPENDIX VII: NGOS / CIVIL SOCIETY ORGANIZATIONS IN KUWAIT 92 APPENDIX VIII: NGOS
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