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CHAPTER 2: THE STATE OF FOREIGN WORKERS
The history of foreign workers is based on different perspectives and aspects, especially between the sending and host states. Each government has its own objectives and evaluations when deciding on policies related to foreign workers. In order to understand the phenomenon more comprehensively, this chapter begins by explaining the history of Indonesian workers, from the colonial rea until the present time. The main focus on this chapter is to see the development of policies issued by the Indonesian government in dealing with Indonesian workers. As various governments dominated Indonesian politics, each government surely had its own objective, solutions, and policies in coping with the issues of Indonesian workers.
The second part of this chapter presents the objectives of the Taiwan government in admitting foreign workers into their territory, and how the Taiwan government has been dealing with this phenomenon. By providing descriptions pertaining to foreign workers from both the sending and receiving states, this gives a comprehensive understanding related to the issue of runaway Indonesian workers in Taiwan. Lastly, the third section summarizes previous discussion on the issues related to the foreign workers management system.
THE INDONESIAN PERSPECTIVE: TENAGA KERJA INDONESIA
The history of Indonesian overseas workers (Tenaga Kerja Indonesia in the Bahasa Indonesian language, or TKI) can be traced back up to the era of colonialism by the Dutch and British. After Indonesia gained its independence, it faced several regimes changes, with each regime holding different policies in dealing with Indonesian workers, which was improved upon
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after the reformation in 1998. This part focuses on the Indonesian government’s objectives, and the development of policies in regards to the welfare and protection of Indonesian workers.
The Era of Colonialism (1890-1945)
During era of colonialism under the Dutch, many Indonesian workers were sent to Suriname and New Caledonia as contract laborers. The transfer of Indonesian workers was meant to replace the African slaves who were freed on July 1, 1863, after the abolition of slavery.
69 According to the Indonesian government records, the very first Indonesian workers were sent abroad on May 21, 1890, on the Dutch ship Koningin Emma, which arrived in Suriname on August 9, 1890. Most of the Indonesian workers were from Java Island, which had the highest population density in Indonesia at the time.
Most Indonesian workers worked in the plantations of foreign private companies.
International migration was highly influenced by the interests of colonials or foreign private companies, not the willingness of the workers. Therefore, the type of migration during this era was forced migration, and the migrants tended to move permanently.70 The working conditions were very poor, with workers lacking any legal protection, specific working hours, or regulations, not to mention low wages. This indicates that such treatment was no different from slavery.
On the other hand, British colonialism also employed Indonesian workers for infrastructure development in the Malaya Peninsula in the 20th century. The objective was to
69 BNP2TKI, “Sejarah Penempatan TKI Hingga BNP2TKI”, http://www.bnp2tki.go.id/frame/9003/Sejarah-Penempatan-TKI-Hingga-BNP2TKI, accessed on July 10, 2015 at 14:11.
70 Utari Romauli Sitorus, “Sejarah Tenaga Kerja Indonesia,” in Hubungan Bilateral Indonesia-Malaysia Studi Analisis: Dampak Ekonomi dan Politik dari Pengiriman Tenaga Kerja Indonesia ke Malaysia Periode 2004-2009, (Medan: University of North Sumatera, 2013), p.24-25.
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support British’s interests in achieving its economic expansion by developing its colonies.
Nevertheless, the type of Indonesian workers under the British colonizers was slightly different than their Dutch counterpart. Even though their status was still that of contract laborers, they were working in Malaysia voluntarily. During this time, the exchange between Indonesian and Malaysian workers was reciprocal, as many Malaysian workers also worked voluntarily in Indonesia. However, there were still no legal codes or regulations protecting the rights and obligations of Indonesian workers.
The Old Order Era (1945-1966)
After Indonesia gained its independence, the movement of Indonesian workers to Malaysia continued. However, the Old Order regime under President Soekarno did not pay too much attention to migrant workers, as its focus was the early domestic development and the enhancement of nationalism among Indonesian people after the long era of colonialism.
The era of independence marked the emergence of the Indonesian Ministry of Labor. On July 3, 1947, the Ministry of Manpower was established through Government Regulation No.
3/1947 with the main responsibility of managing labor-related issues in Indonesia.71 However, the Ministry of Labor mainly focused on Indonesian laborers in the domestic context due to their strong influence and involvement in the political realm. There was no historical record related to the policies regulating the welfare or protection of Indonesian overseas workers. Despite the limited scope, the establishment of the Ministry of Labor was in accordance with national interests at that time, which was to strengthen the domestic national development.
71 BNP2TKI, op.cit.
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The New Order era marked a new beginning for Indonesian workers, as President Soeharto was planning to integrate Indonesia’s economy to the world. With abundant oil as natural resources, the New Order regime started to perceive human resources as one of the means to draw foreign investors’ through providing cheap labor.72 Exporting human resources was perceived as one of the solutions to cope with the high unemployment rate on the domestic level.
At the same time, the New Order regime also carried a five-year national development project, called Pembangunan Lima Tahun (Pelita).
As the first step, the New Order regime changed the name of the Ministry of Manpower to the Ministry of Manpower and Transmigration, responsible for issuing policies and regulations related to Indonesian workers. The first official program initiated by the Ministry of Labor and Transmigration was called Labor Movement Between Regions (Angkatan Kerja Antar Daerah/AKAD) and Labor Movement Between Countries (Angkatan Kerja Antar Negeri/AKAN) under Government Regulation No. 4/1970.73 AKAN was divided into two divisions based on regions, which were the Middle East and the Asia Pacific regions. Based on this policy, the government collaborated with the private sector in arranging the placements and destinations of workers. However, in 1994, AKAN was dissolved and replaced by the Directorate of Indonesian Workers’ Service Export.
Concerned about the role of private companies in facilitating the placement of Indonesian workers, the government attempted to regulate them firmly. Through Ministerial Decree No.
129/Men/1983, the Ministry of Manpower and Transmigration regulated business licenses, rights
72 Riwanto Tirtosudarmo, Mencari Indonesia: Demografi Politik Pasca Soeharto, Jakarta:LIPI Press, 2002, p. 4.
73 BNP2TKI, Sejarah Penempatan TKI Hingga BNP2TKI. (http://www.bnp2tki.go.id/berita-mainmenu-231/berita-foto-mainmenu-31/4054-sejarah-penempatan-tki-hingga-bnp2tki-.htm accessed on December 19, 2013 at 16.10)
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and obligations, and criminal sanctions for private recruitment companies (Perusahaan Pengerah Tenaga Kerja Indonesia ke Luar Negeri/PPTKLN) that did not abide by the regulations.74 Meanwhile, based on the data from the Pelita program, the number of Indonesian overseas workers kept increasing as presented on the table below.
Table 3. The Number of Indonesian Workers During the New Order Era Pelita I
Source: Prijono Tjiptojerijanto, Migrasi Internasional: Proses, Sistem, dan Masalah Kebijakan, in Globalisasi dan Migrasi Antar Negara ed. by M. Arif Nasution, (Bandung: Kerjasama Yayasan Adikarya IKAPI with Ford Foundation, 1999), p. 10.
Aware of the high volume of Indonesian overseas workers, the Ministry of Manpower and Transmigration issued “Number of Indonesian Workers” Government Regulation No.
5/1988, which specifically regulated the placement of overseas workers.75 At the same time, due to the fact that most Indonesian workers were going to Saudi Arabia as their main destination, Ministerial Decree No. 1307 was also issued, which provided technical guidance for the placement of Indonesian workers in Saudi Arabia.76 Up to this stage, the government intended to establish institutionalized placement arrangements for Indonesian workers. Table 4 below presents the progress of government policies in regulating Indonesian overseas workers.
74 Wahyu Susilo et.al, Selusur Kebijakan (Minus) Perlindungan Buruh Migran Indonesia, (Jakarta: Migrant CARE, 2013), p. 18.
75 Utari Romauli Sitorus, “Sejarah Tenaga Kerja Indonesia,” in Hubungan Bilateral Indonesia-Malaysia (Studi Analisis: Dampak Ekonomi dan Politik dari Pengiriman Tenaga Kerja Indonesia ke Malaysia Periode 2004-209, loc. cit, p.28.
76 Riwanto Tirtosudarmo, “Dimensi Politik Migrasi Internasional: Indonesia dan Negara Tetangga”, ed. by M. Arif Nasution in Globalisasi dan Migrasi Antar Negara, (Bandung: Yayasan Adikarya IKAPI and Ford Foundation, 1999), p. 151.
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Table 4. The Progress of Government Policies During the New Order Era (1966-1998)
No. Policy Purpose Classification
1. Government Regulation No. 4/1970
Establishment of the Labor Movement Between Regions (Angkatan Kerja Antar Daerah/AKAD) and the Labor
Regulated business licenses, rights and obligations, and criminal sanctions for private recruitment companies (Perusahaan Pengerah Tenaga Kerja Indonesia ke Luar Negeri/PPTKLN).
Placement (private recruitment agency)
3. Government Regulation No. 5/1988
Specifically regulated the placement of overseas workers.
Provided technical guidance for the placement of Indonesian workers in Saudi Arabia.
Placement (Indonesian overseas workers)
The Reformation Era (1998-2004)
The reformation era marked a new beginning not only for the political realm, but also for labor issues. The government granted freedoms, particularly freedom of speech, to the Indonesian people, including those overseas workers who voiced their concerns regarding welfare with other non-governmental organizations. Accordingly, the government issued two policies in response. The first policy was Ministerial Decree No. 92/1998, which covered the insurance scheme for Indonesian overseas workers.77 In the following year, the government released Ministerial Decree No. 204/1999, which covered the placement process of Indonesian overseas workers, and replaced the Directorate of Indonesian Workers’ Service Export with the Directorate of Placement for Indonesian Overseas Workers (Penempatan Tenaga Kerja Luar Negeri/PTKLN). However, Ministerial Decree No. 204/1999 emphasized the process of
77 Ana Sabhana Azmy, Negara dan Buruh Migran Perempuan: Menelaah Kebijakan Perlindungan Masa Pemerintahan Susilo Bambang Yudhoyono 2004-2010, (Jakarta: Yayasan Pustaka Obor Indonesia, 2012), p. 50.
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recruitment between private agencies and government bureaucracies, not the protection of Indonesian workers. There was still no mechanism that guaranteed workers’ rights. Nonetheless, based on this decree, the workers now had the freedom to form their own labor organization, the Indonesian Labor Union (Serikat Buruh Seluruh Indonesia/SBSI), which was highly forbidden during the New Order regime.78 Moreover, the government also revoked Law No. 25/1997 regarding an exploitative labor mechanism, anti-labor union policies, and the lack of firm protection for Indonesian workers.79
Indonesia was also facing an economic crisis in the early reformation era, therefore increasing unemployment. This caused more and more Indonesians to work overseas and find a better salary to increase the quality life for their families. As indicated on Table 3 on the previous page, the number of Indonesian overseas workers nearly doubled from the period of Pelita IV to Pelita V. Most of these workers were women who worked in the domestic sector as housemaids who encountered several problems, i.e. physical and sexual abuse, due to the lack of protection from the government.
In order to overcome these arising problems, the government issued Presidential Decree No. 109/2001 alongside Ministerial Decree No.053/2001 from the Ministry of Foreign Affairs to establish the Directorate of Protection for Indonesian People (Direktorat Perlindungan WNI) and the Indonesia’s Legal Entities for Indonesian People (Badan Hukum Indonesia/BHI) under the supervision of the Ministry of Foreign Affairs.80 The main responsibility of these institutions is to provide protections for Indonesian overseas workers, especially women workers in domestic
78 Ibid, p. 51.
79 Ana Sabhana Azmy, Gus Dur, Keadilan Gender dan Buruh Migran, (accessed from
http://www.nu.or.id/a,public-m,dinamic-s,detail-ids,50-id,49211-lang,id-c,esai-t,Gus+Dur++Keadilan+Gender++dan+Buruh+Migran-.phpx on February 14, 2015 at 13:01).
80 Ana Sabhana Azmy, Negara dan Buruh Migran Perempuan: Menelaah Kebijakan Perlindungan Masa Pemerintahan Susilo Bambang Yudhoyono 2004-2010, op.cit., p. 53.
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(PTKLN) was replaced by the Directorate of Placement and Protection for Indonesian Overseas Workers81 to emphasize its role in the protection of workers even after the placement process was complete. In addition, Regulation No. 150/2000 under the Ministry of Manpower was also issued to regulate the anticipation of work discontinuance of migrant workers by their employers.82In 2004, the government issued Law No. 39/2004 as the central governing instrument of the labor migration system, particularly with the establishment of the Placement and Protection of Indonesian Overseas Workers (Penempatan dan Perlindungan Tenaga Kerja Indonesia di Luar Negeri/PPTKILN).83 The objective of the PPTKILN was to anticipate the increasing number of illegal Indonesian overseas workers, one of the main issues at that time. Based on the same law, the name of the Indonesian private agencies dealing with the placement of Indonesian overseas workers was changed to the Executing Agency of Placement for Indonesian Overseas Workers (Pelaksana Penempatan Tenaga Kerja Indonesia Swasta/PPTKIS). Law No. 39/2004 was also the basic law for the establishment of a National Board of Placement and Protection for the Indonesian Overseas Workers (Badan Nasional Penempatan dan Perlindungan Tenaga Kerja Indonesia/BNP2TKI) in the future. Table 5 below summarizes the progress of government policies during the reformation era.
Table 5. The Progress of Government Policies During the Reformation Era (1998-2004)
No. Policy Purpose Classification
1. Ministerial Decree No. 92/1998 (MOM)
Covered the insurance scheme for Indonesian overseas workers.
Protection (Indonesian overseas workers)
2. Ministerial Decree Regulated the placement process of Placement (Indonesian
81 BNP2TKI, Sejarah Penempatan TKI Hingga BNP2TKI, loc.cit.
82 Ana Sabhana Azmy, Gus Dur, Keadilan Gender dan Buruh Migran, loc.cit.
83 Ana Sabhana Azmy, Negara dan Buruh Migran Perempuan: Menelaah Kebijakan Perlindungan Masa Pemerintahan Susilo Bambang Yudhoyono 2004-2010, op.cit., p. 56.
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No. 204/1999 (MOM) Indonesian overseas workers and replaced the Directorate of Indonesian Workers’ Service Export with the Directorate of Placement for Indonesian Overseas Workers.
overseas workers)
3. Presidential Decree No. 109/2001 and Ministerial Decree No.053/2001 (MOFA)
The establishment of the Directorate of Protection for Indonesian People (Direktorat Perlindungan WNI) and Indonesia’s Legal Entities for Indonesian People (Badan Hukum Indonesia/BHI) under the Ministry of Foreign Affairs.
Protection (Indonesian overseas workers)
4. Regulation of Ministry of Manpower No.
150/2000
Regulated severance in anticipation of work discontinuance of migrant workers.
Protection (Indonesian overseas workers)
5. Law No. 39/2004 The central national labor migration policy, particularly with the establishment of the Placement and Protection of Indonesian Overseas Workers
Placement and Protection (Indonesian overseas workers)
After the Reformation Era (2004-present)
The reformation era was marked by the first direct presidential election by the Indonesian people, making Susilo Bambang Yudhoyono as Indonesia’s sixth president. During his presidency, many Indonesians, especially those who lived in the rural areas, still desired to work abroad rather than in Indonesia. This decision was triggered by insufficient employment offers compared to Indonesia’s massive population. In addition, the government started to acknowledge the remittances that the workers sent back home to their families as one of the foreign exchange earnings.
According to Bank Indonesia, the remittances reached US$ 5.3 billion in 2005, or 2% of the Indonesian GDP and 15.3% of the foreign exchange.84 The number reached its peak in 2008
84 Rita Pawestri Setyaningsih, “Job Satisfaction of Indonesian Workers”, (Master thesis, National Chengchi University, 2011), p.29.
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with a total of US$ 6.6 billion, and decreased slightly to US$ 6.0 billion in 2009, mainly due to the global economic recession.
Table 6. Indonesian Overseas Workers’ Remittances 2005-2009 Year Amount (in billion) % of GDP % of foreign exchange
2005 US$ 5.3 2 15.3
2006 US$ 5.6 2 13.1
2007 US$ 6.0 1 10.5
2008 US$ 6.6 1 12.8
2009 US$ 6.0 1 10.0
Source: compilation from BNP2TKI, Bank Indonesia and Republic of Indonesia’s Ministry of Manpower and Transmigration as cited by Rita Pawestri Setyaningsih (Job Satisfaction of Indonesian Workers in Taiwan).
Taking into account the contribution of Indonesian overseas workers in Indonesia’s GDP and foreign exchange through remittances, the Indonesian government rewarded them with the title of “heroes of foreign exchange”, or “pahlawan devisa”. This action was also followed with the effort of the Indonesian government to better regulate Indonesian overseas workers, particularly in providing protection.
In Susilo Bambang Yudhoyono’s early administration, Law No. 39/2004 established National Board of Placement and Protection for the Indonesian Overseas Workers (Badan Nasional Penempatan dan Perlindungan Tenaga Kerja Indonesia/BNP2TKI) based on Presidential Decree No. 81/2006. This institution is responsible for providing a better system for placement and protection for Indonesian workers overseas through coordination with other government institutions, i.e. the Ministry of Education, the Ministry of Health, the Ministry of Manpower and Transmigration.85 Nevertheless, the establishment of this institution was
85 BNP2TKI, Sejarah Penempatan TKI Hingga BNP2TKI, loc.cit.
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considered as creating dual roles without a clear division of tasks between the BNP2TKI, and the Ministry of Manpower and Transmigration.
Moreover, the president also released Presidential Instruction No. 6/2006 to reform the system on the placement and protection of Indonesian overseas workers. This policy consisted of a simplified and decentralized placement service for Indonesian overseas workers, as well as the increment of workers’ quality and quantity, while strengthening the role of Indonesia’s representative offices in providing protection at the destination countries.86
In the following year, Ministerial Decree No. 18/2007 was issued, which emphasized the technical practice of placement and protection for Indonesian overseas workers. However, the pre-placement phase was not specified in this decree. In 2009, the Ministry of Manpower and Transmigration released several regulations regarding Indonesian overseas workers. Ministry’s Regulation No. PER 5/MEN/II/2009 was issued to regulate the implementation of pre-placement training for Indonesian overseas workers, which was followed by Ministry’s Regulation No. PER 23/MEN/IX/2009, regarding education and training for Indonesian overseas workers. In order to regulate the PPTKIS in dealing with Indonesian overseas workers, the Ministry of Manpower and Transmigration issued Ministry’s Regulation No. PER 10/MEN/V/2009 regarding licensing, and the renewal and revocation of licenses for the agencies. However, this regulation was replaced by Ministry of Manpower’s Regulation No. 24/2014.
The government then released Ministerial Regulation No. 14/2010, which focused on the separation of responsibilities and duties between the Ministry of Manpower and Transmigration and the BNP2TKI.87 According to this regulation, the Ministry of Manpower and Transmigration
86 Utari Romauli Sitorus, “Sejarah Tenaga Kerja Indonesia,” in Hubungan Bilateral Indonesia-Malaysia Studi Analisis: Dampak Ekonomi dan Politik dari Pengiriman Tenaga Kerja Indonesia ke Malaysia Periode 2004-2009, loc.cit, p. 30-32.
87 Ibid.
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BNP2TKI held responsibilities in operational issues. To strengthen the protection of Indonesian overseas workers, the government released Regulation No. 12/2011 on Labor Attaché Overseas, which placed ministry staff in Indonesian embassies to assist Indonesian workers.Moreover, in early 2013, the president also adopted Government Regulation No. 3/2013, which set out a protection framework for migrant workers and clarified the role of each government department prior to departure, during overseas placement, and upon return.88 It was followed by other regulations regarding the practical placement and repatriation of Indonesian overseas workers, i.e. Government Regulation No. 4/2013, which regulated the implementation of Indonesian overseas workers’ placement by the government; Ministerial Regulation No.
4/2013, which focused on the extension of work’s agreement for individual hiring; and Presidential Regulation No. 45/2013, which addressed the coordination of Indonesian overseas
4/2013, which focused on the extension of work’s agreement for individual hiring; and Presidential Regulation No. 45/2013, which addressed the coordination of Indonesian overseas