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Foreign worker regulation: The rights and wrongs

Toward the end of 2017, the Central Statistics Agency reported that 121 million of the total 128 million workers in Indonesia were employed. 
 

Ibrahim Kholilul Rohman and Morten Meyerhoff Nielsen (The Jakarta Post)
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Guimares, Portugal
Mon, May 7, 2018

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Foreign worker regulation: The rights and wrongs Toward the end of 2017, the Central Statistics Agency reported that 121 million of the total 128 million workers in Indonesia were employed. (Shutterstock/File)

T

he phenomenon of the influx of foreign labor into Indonesia has led to a debate among political parties, corporate interests and the public at large. The focus of the debate revolves around the newly issued Presidential Regulation No. 20/2018 on foreign workers. Some see the regulation as solely facilitating a greater influx of foreigners at a time when Indonesia is grappling with unemployment. President Joko “Jokowi” Widodo has countered this view by asserting that the regulation focuses on the much needed modernization of bureaucratic procedures for foreign workers and the issuance of work permits.

Vice President Jusuf Kalla backed the regulation, emphasizing the potential for increasing foreign investment by streamlining administrative requirements for investors. He stressed that foreign workers are important for boosting investment, capital inflows and the potential transfer of knowledge and skills that might raise the quality of local human capital. The vice president illustrated how Thailand exports more than Indonesia while hosting ten times more foreign workers in relative terms.

Worker mobility is by no means a uniquely Indonesian or Asian phenomena. Worker migration happens daily on a global scale. South Africa, for example, is host to over a million Zimbabweans, with mines and industries attracting foreign workers from Europe and Southern Africa since the 1860s. We also see United States-Mexico worker mobility as part of the North American Free Trade Agreement (NAFTA). Moreover, the free movement of people is a cornerstone of the European Union. These examples show that there are substantial benefits from having international worker mobility both in economic terms and for the individuals seeking work.

Worker movements follow several patterns. For instance from the global South to North and from East to West. Similarly, worker movement between high income countries takes place. For example, Danish and Swedish workers often migrate to Norway as a result of the booming Norwegian economy, coupled with a demand for workers and better wages. Thus, demand and supply plays a key role meaning that people move for better job opportunities and salaries.

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