Migrant workers send home billions

Suherdjoko and Panca Nugraha ,  The Jakarta Post ,  Kendal/Mataram   |  Thu, 09/25/2008 10:22 AM  |  The Archipelago

Migrant workers from Kendal, Central Java, working in East Asian and Middle Eastern countries have made daily remittances worth a total Rp 529 million (US$59,000) during Ramadan, a sharp increase compared with the July total of Rp 363 million.

Migrant workers have sent Rp 10.8 billion to their relatives in the past 20 days, compared with Rp 10.9 billion for the whole of August, Kendal post office head Yuli Saputro told The Jakarta Post on Monday.

“The trend is rising in the lead-up to Idul Fitri. The total sum of remittances made through Western Union is double last year,” Yuli said.

By August this year, remittances totaled Rp 78.6 billion compared with Rp 39.26 billion during the corresponding period of last year.

“That’s only the sum recorded by our post office. The full amount is definitely bigger,” Yuli said.
Western Union at the post office is chosen because of its good service, according to Yuli.

“Recipients only have to give the money transfer code and produce their identity card, and in a matter of minutes they receive the money,” he said.

Yuli said senders usually inform their relatives of the transfer code and amount of money sent by text message.

Nine post office branches in Kendal regency — Kendal, Pegandon, Gemuh, Cepiring, Bojo, Sukorejo, Weleri, Patebon and Kaliwungu — provide remittance services.

“Recipients usually come to Kendal and Kaliwungu to cash their remittances before they go shopping,” he said.

Pockets of Indonesian migrant workers are found in Pegandon, Cepiring, Gemuh, Ringinarum and Patebon districts in Kendal regency. Their success is evident from the new homes they have built.

For example, 400 of the 2,994 residents in Pegandon village are migrant workers. Evidence of their success lies in the growing number of permanent houses decked out with Greek columns over the past three years, compared with the previous wooden houses.

In Mataram, West Nusa Tenggara, remittances from migrant workers contribute up to Rp 500 billion annually to local income.

The amount of remittances recorded by state-owned Bank Mandiri and Bank Negara Indonesia stood at Rp 457 billion in 2005, Rp 438 billion in 2006, Rp 473 billion in 2007 and Rp 236 billion, as of the middle of this year.

“The amount recorded is just from those two banks. Many workers bring their money home in cash, or through their returning friends,” coordinator of the Panca Karsa (PPK) migrant workers association in Mataram, Endang Susilowati, told the Post.

“The amount would be huge if all of it was recorded,” Endang added.

She said the huge sums of money sent by the “foreign exchange heroes” had not been rewarded by the local administration paying more attention to their plight, especially where their protection is concerned.

“Imagine if each migrant worker brought home just Rp 1 million for Idul Fitri: How much money would circulate in the province?” she asked.

Comments (1)  |   Post comment
A  |   A  |   A  |   Mail to a friend  |  Printer Friendly Version |  Digg it!  |  Add to Del.icio.us!  |  Add to Reddit!  |  Stumble it!

Imam (not verified) — Thu, 09/25/2008 - 2:21pm

Be careful when you talk about your money. In this country, especially for Tax Authority if they know your income, no matter how long you’ve been staying in Indonesia each Tax Year, they will come to force you paying UNFAIR rate.

Most of them, if not all of them will never consider how many days you’ve stayed in Indonesia as long as you are Indonesia’s Citizen, they will consider that you are a Resident Tax Payer which is meant that your income from abroad must be taxed, should your net income have reached the specific amount.

Compared to other countries, our Tax System is really unfair for it’s own citizen. Just imagine, we are living outside Indonesia for almost a year in a Tax Year or we visit Indonesia and spent NOT More than 183 days in Indonesia during the Tax Year, our Income source is from abroad without any relation with Indonesia, but just because we are Indonesia’s Citizen, they will force us to be considered as Resident Tax Payer.

My colleagues (British) told me that in their Tax System, their Income from Abroad will be tax exempted, if their Total Days staying in United Kingdom is less then 93 Days. It’s reality that United Kingdom is considered as one of the countries that have a sophisticated Tax System and sometimes their Tax System is used as a model by other countries in developing their tax system.

Our remittance from abroad is more than a Tax, considering the huge number of unemployment in this country. It’s the time for our government and 'DPR' House to give the “exempt tax” for it’s Citizen Income from abroad if their Total Days Staying in Indonesia for a Tax Year is less then 183 Days (treat them as Non Resident Tax Payer). At least to show them that the label of “Foreign Exchange Heroes” at Immigration Check Desk in Cengkareng Airport is a serious title.

Again, do not disclose too much about your pocket, if you do not expect to be bothered by Tax Authorities.