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Better Management of Indonesian (Cheap) Migrant Workers in Malaysia Might Benefit Both Countries

By D. Manggala (March 5, 2005)

The issue of illegal Indonesian workers in Malaysia is not new; in fact the mass deportation in this first quarter of 2005 is the second biggest after similar situation in 2002.

From a quick look, the case is quite simple: Malaysia needs workers for constructions, manufacturing or agricultures areas; Indonesia has a large pool of unskilled workers. The demand-supply meets and it creates the labor market between the two neighbour countries.

The problem is because both governments failed to regulate or manage that labor market. Indonesian government seems unable to control the flow of workers to Malaysia; most of the workers sent by many private institutions/labor exporters are illegal. To make the situation more complex there is an ugly conspiration between tekong (this is the migrant agent) and government officers to use the situation for their own profit.

On the other side, Malaysia's government seems only glad to have their economy grow fast enough without acknowledge there is a significant contribution from the cheap (but illegal) workers from the surrounding countries, mostly from Indonesia. From about 3.5 million Indonesian workers in Malaysia, almost 2.5 millions of them are illegal [1]. By punsihing only the illegal workers without the same fair and just treatment to their employers, it is not only will fail to solve the problem but also raise a new issue because of "nationality pride" issue. The worst example of this is the "Hire Indonesian Last" policy declared by Mahathir Mohammad back in 2002.

Now, with the amnesty to free Indonesian illegal workers from any legal consequences if the workers leave Malaysia, there are still more than 300 thousands workers decided to stay. Why? Because they have not been paid by their employers for more than four months. In this situation, we have to concern about the workers because of many parties take advantage of their illegal status.

We need to understand why Kuala Lumpur took the strong approach. Here are the two main reasons:

1. To protect employment for Malaysians during the current economy downturn.

2. Indonesian workers are associated with the increasing crimes in Malaysia. About 36% of prison inmates in Malaysia are Indonesian[2]. Even worse, there is indication of the linkage of terrorists network with Indonesian illegal workers in the country (notes- this is ironic because the two most dangerous terrorists who, according to Indonesian official governments, responsible for the three biggest bombings in Indonesia are from Malaysia).

By deciding to "flush out" all illegal workers from Malaysia, there has been consequences for Malaysian industries, especially the construction. Kuala Lumpur Convention Center has been delayed due to labor shortage. There are some other reports, according to Human Resources Minister Fong Chan Onn, that some agriculture and food sectors have closed their operation also because of labor shortage[3].

For Indonesia, this problem will certainly add employement problems in addition to the current slow growth in job market. Not to mention the loss of additional income from the workers' contributions to their family.

So, who win in this situation?

Despite the efforts from both governments to solve this issue, there should be a better management approach to be developed. Some of the efforts such as the coordination between Indonesia-Malaysia officials in One Roof Center (ORC) to help illegal workers to get their legal status must be continued and sustained.

There are some issues such as eliminating the bad workers agents who have long story in creating this problem should be taken more seriously by Indonesian government. These agents, who took payment from the workers, are the ones who lure many villagers, promising big salary and better live, providing the workers fake passports or other illegal means. Better selection of the workers and the possibility to train them prior to departure should be managed. The association that "Indonesians are criminals" in Malaysia is the result of historical bad management from Indonesia sides. From the other side, Malaysia must put strong law enforcement to bad employers who keep hiring illegal workers (especially the employers wh have NOT paid their workers).

With better management, the labor shortage in Malaysia will be solved, while Indonesia will be happily send its workers to its neighbour country. Isn't it the very basic idea of international trade?

From a more strategic view, the collaboration of ASEAN members to integrate their market should be taken seriously. The example of how European Union regulate their labor flows should be taken into consideration by officials within ASEAN.

Without the commitment to integrate within ASEAN, how could it compete with the great China to attract foreign investment?

 

Works cited

[1] "The Wahid Institute Ready For Bridging RI-Malaysia on Labor." Accessed 5 Mar 2005 from <http://www.gusdur.net>

[2] Liow, Joseph. "Desecuritising the 'Illegal Indonesian Migrant Worker' Problem in Malaysia's Relations with Indonesia. Accessed 5 Mar 2005 from <http://www.ntu.edu.sg>

[3] Jegathesan, M. "Crackdown on illegals hurts Malaysian industry " Accessed 5 Mar 2005, result from <http://www.google.com>