Manpower Supply Problem
The government decided to temporarily freeze the delivery of Indonesian manpower supply to Malaysia. The decision was taken after the neighboring country was deemed not to respect the memorandum of understanding. Signed between Malaysia and Indonesia. Minister of Manpower Ida Fauziyah said there was strong evidence that Malaysia implemented a system outside the mutual agreement between the two countries. Namely, the Malaysian Ministry of Home Affairs manages the online maid system (SMO).
SMO has made the position of Indonesian migrant workers vulnerable to exploitation because it is contrary to Law (UU) 18/2017 on the Protection of Indonesian Migrant Workers. In addition, the system also did not go through the correct departure stage.
Manpower Supply in Malaysia: How Much the Salary?
Apart from that, until now there are still several migrant workers who still want to work in Malaysia because of the lure of higher incomes than in the country, especially when compared to Indonesia. So, how much is the salary of Indonesian migrant workers in Malaysia today?
For information, the salary of migrant workers in Malaysia is quite varied. Because Indonesian workers spread in many industries. Some are factory workers; some are household assistants. For the domestic assistant profession, workers can get a salary of around RM 1,200. Is the equivalent of Rp 4 million per month without any deductions.
Meanwhile, TKI who work in the industrial sector, they will get a salary that is calculated on an hourly basis. The minimum salary for TKI for the manufacturing industry sector is RM 3,429 or around Rp 12 million.
Malaysia Asked Indonesia
The chairman of the Malaysian Democratic Action Party, Lim Guan Eng, asked Minister of Human Resources M Saravanan. To confirm when Indonesian government will permit workers return to Malaysia. In a statement discussing the current labor shortage, he said that while Saravanan had given assurances that the matter was resolved with Indonesia. But, Jakarta Ambassador Hermono did not provide such confirmation.
Earlier this month, Hermono said Indonesia had stopped sending workers to Malaysia because the country had reneged on a memorandum of understanding (MoU) on domestic workers. He also demanded the government take immediate action on the acute labor shortage crippling production and economic growth. Due to the labor shortage, Lim said Malaysia has lost around RM10.5 billion from the palm oil sector. Because Malaysia doesn’t have enough manpower supply, they can’t harvest the palm oil. Also, lost RM 2 billion in auto parts exports a year. He then highlighted the ringgit’s depreciation to an all-time low against the Singapore dollar at RM3.22. Also, a five-year low against the US dollar at RM4.46.
At the expense of businesses and consumers, he said import inflation from a weaker ringgit would further increase costs and prices. The Director of Protection for Indonesian Citizens at the Ministry of Foreign Affairs, previously said that the Indonesian government was pushing to hold bilateral meetings to find a way out of the chaotic system of recruiting domestic workers to Malaysia. Indonesia froze the sending of workers to Malaysia due to differences in perception of the contents of the agreement. Agreement which both countries sign it.
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