The financial protection of Indonesian migrant workers and its economic consequences

Economic Annals-ХХI: Volume 196, Issue (3-4), Pages: 22-28

Citation information:
Agusmidah, Wijayanti, A., Shalihah, F., Lumbangaol, D. A., & Reinaldo, V. (2022). The financial protection of Indonesian migrant workers and its economic consequences. Economic Annals-XXI, 196(3-4), 22-28. doi: https://doi.org/10.21003/ea.V196-02


Agusmidah
PhD (Law),
Faculty of Law,
University of North Sumatra (Universitas Sumatera Utara)
Medan Sumatera Utara, 20222, Indonesia (Corresponding author)
agusmidah@usu.ac.id
ORCID ID: https://orcid.org/0000-0001-8036-4688

Asri Wijayanti
PhD (Law),
Faculty of Law,
Muhammadiyah University of Surabaya (Universitas Muhammadiyah Surabaya)
Surabaya, Jawa Timur, 60113, Indonesia
asri.wijayanti@fh.um-surabaya.ac.id
ORCID ID: https://orcid.org/0000-0001-5579-4432

Fithriatus Shalihah
PhD (Law),
Department of Law,
Ahmad Dahlan University (Universitas Ahmad Dahlan)
Yogyakarta, 55166, Indonesia
fithriatus.shalihah@law.uad.ac.id
ORCID ID: https://orcid.org/0000-0002-6273-1381

Dios Aristo Lumbangaol
PhD (Law),
Faculty of Law,
University of North Sumatra (Universitas Sumatera Utara)
Medan, Sumatera Utara, 20222, Indonesia
Lumba.ard@yahoo.com
ORCID ID: https://orcid.org/0000-0002-4748-1425

Vatar Reinaldo
MA (Law),
Faculty of Law,
University of North Sumatra (Universitas Sumatera Utara)
Medan, Sumatera Utara, 20222, Indonesia
vatar.reinlado56@gmail.com
ORCID ID: https://orcid.org/0000-0002-0270-8243

The financial protection of Indonesian migrant workers and its economic consequences

Abstract. The Indonesian Migrant Worker Placement Service mandates Law Number 18 of 2017, which aims to reduce the departure of illegal and unprotected Indonesian Migrant Workers (IMW). This study aims to describe the problem of job placement and financial protection of Indonesian migrant workers as well as its economic consequences. This study uses a descriptive method with an in-depth case study. The research was conducted in the provinces of Nusa Tenggara Barat (NTB) and Nusa Tenggara Timur (NTT). The research area was chosen because both regions have a bad record in many IMW cases outside Java. The data were obtained using observation and interviews with the authorities in the city/district government agencies. Data analysis using Miles and Huberman is done by data reduction, tabulation, presentation, and conclusion. The results show that the government’s one-stop integrated service (LTSA) has not reached all prospective migrant workers from NTB and NTT. The limitations of LTSA are influenced by technical factors, budget, and insufficient human resources. The research results are expected to provide an overview of the relevant parties always to prevent or suppress illegal IMW, which is the responsibility of the State. So that cases of violence against illegal IMW can be avoided.

Keywords: Migrant Workers; Protection of Workers; Illegal Worker; Government; Economic Consequences; Indonesian Migrant Workers

JEL Classification: I31; I38; J01; J15

Acknowledgements and Funding: The authors would like to thank to the University of North Sumatra, which has provided financial support for this research through the Basic Research scheme as a source of funds for the Deputy for Research and Development Strengthening, Ministry of Research and Technology/National Research and Innovation Agency (DBPRP) 2021 Budget, Number: 147/UN5.2.3.1/PPM/KP-DRPM/2021 dated March 17, 2021.

Contribution: The authors contributed equally to this work.

Data Availability Statement: All data will be available upon request.

DOI: https://doi.org/10.21003/ea.V196-02

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Received 8.01.2022
Received in revised form 28.01.2022
Accepted 30.01.2022
Available online 20.04.2022
Updated version of the paper as of 27.05.2022