Gov't to Strengthen Migrant Worker Protection Through MoU with Chamber of Commerce

JAKARTA, investortrust.id - Indonesia's Ministry of Migrant Worker Protection is set to sign a memorandum of understanding (MoU) with the Indonesian Chamber of Commerce and Industry (Kadin) to address key issues surrounding migrant workers, including job creation, workforce quality, and economic contribution.

Minister of Migrant Worker Protection Abdul Kadir Karding stated that his ministry and Kadin share a common goal in creating solutions for employment opportunities.

"There are many areas where Kadin’s objectives align with ours, particularly in finding solutions for job creation," Karding said after a meeting with Kadin representatives at the ministry’s office in Jakarta on Monday, Feb. 17, 2025.

Beyond employment opportunities, the two parties also agreed on initiatives to improve workforce quality and empower Indonesian migrant workers.

"Kadin's participation will be crucial, particularly in preparing and training human resources before their placement abroad," he added.

Karding, who also serves as the head of the Indonesian Migrant Worker Protection Agency (BP2MI), met with Kadin Indonesia Chairman Anindya Novyan Bakrie at BP2MI’s headquarters in Jakarta.

 

Enhancing Workforce Quality and Reducing Domestic Worker Dominance

Karding, an alumnus of Diponegoro University, highlighted that 80% of Indonesian migrant workers are currently employed in domestic work. He expressed hope that Kadin’s involvement would help improve worker skills, enabling better placement opportunities.

"We have already formed dedicated teams on both sides to finalize the MoU. By August, we expect to have a prototype in place and begin implementation planning," Karding said.

The agreement aims to reduce the proportion of Indonesian migrant workers in the domestic sector from 80% to 60%. Another key target is to boost remittance inflows.

"Last year, remittances amounted to Rp221 trillion ($14 billion). With this collaboration, we believe we can raise that to Rp300 trillion–Rp400 trillion ($19 billion–$25 billion)," he noted.

Kadin’s Role in Migrant Worker Development

Kadin Indonesia Chairman Anindya Novyan Bakrie welcomed the initiative, emphasizing the significant economic contribution of migrant workers.

"Indonesian migrant workers are the second-largest source of foreign exchange after the oil and gas sector. This is a very serious matter for Kadin," Bakrie said.

He also acknowledged the challenges facing migrant workers, particularly the backlog in placement, which currently affects 1.3 million workers.

To address this, Kadin pledged to support the government in developing the migrant workforce across all stages—from recruitment and training to certification, placement, and post-placement protection.

Bakrie, who also serves as CEO of Bakrie & Brothers Tbk, confirmed that the prototype for the partnership is targeted for completion by August 2025. He expressed confidence that Kadin’s resources would support President Prabowo Subianto’s administration in optimizing the migrant labor sector.

"This is a timely initiative, considering Indonesia's informal sector remains substantial," he said.