Labor exporters question govt remittance

Ridwan Max Sijabat ,  The Jakarta Post ,  JAKARTA   |  Sat, 07/04/2009 10:41 AM  |  National

Despite making huge amounts of money annually from the export of labor, the government has done little to meet migrant workers’ needs or protect them from abuse, say critics.

Since 1994, the government has required that migrant workers pay US$15 each prior to their departure, while their employers must pay between $11 and $20, depending on the country, upon signing labor contracts with the workers.

Thus with each worker contributing around US$30 each time they depart to work overseas, and with Indonesia supplying around 40,000 workers to Saudi Arabia, the United Arab Emirates, Taiwan, Hong Kong, Malaysia and Singapore, among other places, the government is minting it.

“The government receives $1.2 million monthly, or $14.4 million a year, from the export of labor,” Indonesian Labor Exporters Association (Himsataki) chairman, Yunus Yamani, told The Jakarta Post on Friday.

“In the past 15 years, the government has earned $216 million in non-budget revenue, but what has it done to maximize labor protection, and what has it given to troubled workers in compensation?”

Labor exporters are also required to insure migrant workers through commercial insurers appointed by the government.

“We pay Rp 400,000 in premiums for each worker going abroad. Through the insurance companies, the government receives Rp 16 billion [$1.6 million] a month, or Rp 192 billion a year,” Yunus said.

Association of Labor Export Companies (Apjati) deputy chairman Rusjdi Basalamah slammed the government for its lack of accountability for the huge protection funds.

“The funds are adequate to appoint and send labor attachés overseas, and set up an independent agency specializing in labor training, certification and documentation, which is still covered by labor exporters,” he said.

Yunus and Rusjdi said the poor recruitment and training of migrant workers had contributed to widespread migrant worker abuse overseas, but added it was absolutely unfair to blame it only on labor exporters.

They pointed out the government was constitutionally bound to create jobs at home and protect Indonesian citizens abroad.

“Workers pay taxes to the government and buy insurance, but they receive only a little in compensation when they get into trouble, are abused, raped or tortured,” Rusjdi said.

An estimated 10 million Indonesians work in numerous sectors and countries, but only 4.8 million have been officially registered with both the manpower ministry and the Foreign Ministry.

More have taken the illegal path through the haj program, on-arrival and tourist visas to work overseas, leaving them vulnerable to exploitation and abuse.

Labor export has come under the spotlight in recent weeks following the deaths of two workers in Saudi Arabia and the abuse of many more in Malaysia, sparking an emotional overreaction at home.

Labor exporters agree their role is limited to supplying the labor market, while the recruitment, training and certification is down to the government, because of its constitutional responsibilities.

“The government also has to discipline regional administrations that act as labor recruitment brokers, and must close down the special terminal for arriving workers at international airports nationwide, to minimize the widespread practice of extortion, which involves corrupt government officers and transportation personnel,” Rusjdi said.

Anish Hidayah, executive director of Migrant Care, which provides labor advocacy for migrant workers, agreed, saying the lack of transparency in the use of the huge protection fund, including remittances, could be an indication of corrupt governance.

She added her organization had never received any financial assistance from the government in carrying out its work, and urged the Supreme Audit Agency (BPK) to audit the Manpower and Transmigration Ministry’s much-criticized bank accounts.

Malik Harahap, the ministry’s director of overseas labor placement overseas, said the government received $90 million annually from labor export, but added the funds were received as non-tax revenue by the Finance Ministry.

“The manpower ministry has never used the fund, but 60 percent of it has been allocated for protection for workers through the ministry’s annual budget,” he said.

He confirmed labor exporters had to pay Rp 400,000 for each worker they sent abroad, but said the funds went to insurance companies, not the government.

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