Depnakertrans legalize extortion towards Taiwan Female Workers?

It was being a rumour since April 2009 until fade away on August 2009 that the Taiwan loan for Indonesia care taker will be increased.

Suddenly an email dated 20 October 2009 came from Huanan Bank, informing that the new cost structure has been release and already available for Indonesia Manpower Agencies. Binamandiri directly talked with China Trust Bank, as we no longer cooperate with Huanan Bank, and the information from China Trust Bank that the new cost structure was still in discussion by Indonesian Ministry of Manpower and Transmigration (Depnakertrans). Previously China Trust Bank ever printed the new cost structure as ordered by Depnakertrans unfortunately suddenly it was never applied and China Trust Bank just wasted the printed materials, so we don’t want to waste more printed materials, claimed one of China Trust Bank officer.

So, Binamandiri was assuming that there wasn’t any changing yet, until suddenly China Trust Bank sent email to inform us to get the new loan book with new cost structure, the information was very contrast with the one on 20 October 2009, else Binamandiri’s staff in Jakarta received rejection from Depnakertrans office who deals with documents legalization for Taiwan Visa due to the use of old cost structure.

Like always, not a single letter from Depnakertrans as the policy maker has been released to announce the new cost structure either to the appointed banks nor Indonesian Recruitment Companies. Probably Depnakertrans just want to have their hands clean by not issuing any letters related to it, so that no one can make any lawsuit or protest towards the government and leave the dirty hands to others parties, and probably the bank will be the escape goat.

The big questions are, WHY THE TAIWAN’S LOAN FOR INDONESIAN FEMALE CARE TAKER HAS TO BE INCREASED? WHAT IS THE URGENCY? WHO WAS ASKING FOR THE INCREASEMENT?

Previously, Indonesia Female Caretakers has to lend money for their placement expenses to Taiwan, although she can pay upfront. If the Caretaker does not sign any loan agreement with appointed Taiwan Bank, Depnakertrans will reject any legalization for visa applications. The caretaker has to lend approximately NTD 49.787 or roughly 15 million Rupiah, and total NTD 70.545 for the payment on the loan plus interest and various fees from the Bank or 40% of interest for 1 (one) year term of loan. And yet Depnakertrans approved such loan scheme which consider with unreasonable interest compare with big conglomerates who only pay maximum 18% of interest for their business loan, but mostly even less. Binamandiri though Indonesian Female Caretakers are the true economic heroines in modern era, where their remittances every year achieve 10% of National Budget or 10 times of foreign investment to Indonesia, and yet the appreciation from Indonesia Government is extremely low.

Now, started from 20 October 2009, Depnakertrans has approved to increase the loan to NTD 60.794, NTD 11.007 or roughly 3 million Rupiah more than previous cost structure, and with total of NTD 85.728 for the entire payment. 3 millions is considered big amount for Indonesian Female Caretaker.

It already becomes public secret and common practices in Indonesia that from the previous cost structure, NT 49787, Indonesian Recruitment Agencies can still share NTD 15.000 to their Taiwan agency partner even some Indonesian Recruitment Agencies can even share up to NTD 22.000, which certainly they will cut all the necessary costs such as Training and proper meal and accommodations of the candidates. Some can even share around a million or two to the recruiters which obviously will cut more variable costs related to quality of the candidates.

Those fees are actually not in the cost structure or they are illegal fees but yet that is the common practices.

With the current market situation, where Taiwan demand is higher than the Indonesia supply, Indonesian has bargaining position to lower the sharing fee, so it is unlikely the Taiwan will ask for any increased. Actually it is the appropriate time to revise the cost structure to lower than before, so that, all the excess fee can be suppressed and the Indonesia Female Caretaker won’t be exploited with high loan with high interest.

Probably certain companies who were sharing too much fee were proposing the schemes, so that the can keep increasing the fee while maintain or increase the profit.

In Binamandiri recollection, there wasn’t any inter governments discussion being held about increasing the loan, or at least among associations and Indonesian Manpower Companies. Probably certain crook companies closed to Depnakertrans were proposing and discussing the scheme, because once the loan was increased, some companies also increase the share to recruiters or middle man up to three to four millions as mentioned by one of the recruiter who came to Binamandiri’s office to bargain and comparing the fee with ‘that’ company. Else one Taiwan agency also already asked to increase the fee as they heard about the new cost structure.

Anyway, no matter who was asking for the new cost structure, Depnakertrans is the last line of defence, and sadly Depnakertrans not in favor of Indonesian female caretaker.

The new cost structure only makes “the Indonesian Recruitment Agencies”, “Taiwan Agencies” and the recruiters happier while the Indonesian female caretakers are more extorted.

It is quite odd that the new measurement applied on 20 October 2009, when the cabinet was demission and the new elected cabinet was not yet inaugurated by the President SBY. It was SBY who ordered the ministers including Erman Soeparno, that one month prior to demission, ministers were not allowed to make any strategic decisions, and yet the new cost structure was applied.

Well, how odd it was, the fire ball is in Muhaimmin’s hands now, and Binamandiri hope the new minister can have wise new decision regarding the new cost structure.

New Minister of Manpower and Transmigration, Muhaimin Iskandar

Muhaimin Iskandar is the new Minister of Manpower and Transmigration on the new cabinet of President SBY. It was announced last night (21/10) at exactly 22.00 by President SBY the new cabinet for his second term of his administration.

The announcement of Muhaimin Iskandar as Minister of Manpower and Transmigration was not too surprising, as SBY had already informed to the public about the minister position when he held the audition for Minister at his house in Cikeas-Bogor. After meeting with SBY, each of the Minister Candidates informed publicly about the questions and directives from SBY, and implicitly the public can understand about the position being offered to the candidate.

The composition of the new cabinet dominates by members political parties who supported SBY during the Presidential Election last June 2009. There are 20 Minister out of 34 are from Political Parties including Muhaimin Iskandar as Minister of Manpower and Transmigration.
There are many scepticism and disappointment among experts and the public towards the selected ministers from political party background, as their competence being doubted, else some of them were lost in Legislative election which means their constituents were no longer trusted them, so how they will be able to manage the trust of all Indonesian people during their administrative.

Muhaimin Iskandar currently is the chairman of Nation Awakening Party (PKB), One of Indonesian Party with long history of internal conflicts. He is nephew of the famous Gus Dur, 4th President of Indonesia and also the founder of PKB whom Muhaimin Iskandar had conflict with.
Graduate from Political Faculty of University of Gajah Mada and Master of Communication Science, Muhaimin Iskandar is genuine politician, where he spent most of his time in Political Party and Parliament. His last position was one of Parliament Deputy. He spent most of his young time at Moslem Cleric Enviroment in Jombang.
With such background, there should be concerned with his competence to run Ministry of Manpower and Transmigration as he never dealt anything related to Manpower nor Transmigration, even when he was in Parliament, from any recollection, he never posted in Commission 9 which deals with Manpower and Transmigration.
Muhaimin Iskandar will have to use all his time available to catch up with all the issues related to Manpower and Transmigration and understanding them.

Muhaimin Iskandar is replacing his predecessor, Erman Soeparno who also comes from PKB. It seems Ministry of Manpower and Transmigration is allocated for candidates from PKB rather than choosing competent professional to run it, similar with Ministry of Escalation of Left Territories. But at least Erman Soeparno is businessman who at least ever deal matter related to Labour.

Jumhur Hidayat, head of National Board of Placement and Protection of Indonesia Manpower Overseas (BNP2TKI), in his statement published by BNP2TKI website, is confident that Muhaimin Iskandar is the appropriate person for the job and he is good friend of him, hopefully the dispute between BNP2TKI and Ministry of Manpower and Transmigration can be eliminated during Muhaimin’s administration.
In the same website, Muhaimin said that he will work closely with BNP2TKI of National Program of Manpower Placement Overseas.
Everyone hopes that those statements are not just lips services for the public, where all stakeholders have been suffered from the conflict which made everything rules, regulations, procedures becomes uncertain.

Like the proverb said, “Don’t judge the book from the cover”, we should give Muhaimin a chance to prove the public that he is the best candidate chosen by Presiden SBY to run Ministry of Manpower and Transmigration. 100 days of his administration will be the time for President SBY and the public to evaluate him

Congratulation to Muhaimin Iskandar as Minister of Manpower and Transmigration.

Challenges and Barriers in Recruitment of Indonesian Workers in PPTKIS Perspective

(The Article previously delivered in ILO Workshop of Current Trend of Recruitment Indonesian Workers – 15 October 2009)

3 days Workshop held by ILO in Malang, 14-16 October 2009, to discuss current trend of Recruitment of Indonesian Workers and to identify barriers and challenges of all stakeholders involved, PPTKIS, NGO, Government Officials, Recruiters and many others, looking for the underlying issues.

Barriers in Recruitment
In Binamandiri perspective as Indonesian Recruitment Agency (PPTKIS), it is sadly to say that the biggest barrier is actually comes from Indonesian Government itself.
At least there are 7 (seven) things that makes Indonesian Government becomes the biggest barrier, thus are
1. Conflict between Depnakertrans and BNP2TKI
It already becomes despicable scene the open long conflict between Depnakertrans and BNP2TKI, not only shameful scenery that public think about power and money dispute, but also creates uncertainty in law, regulation and procedure in grass root. Not even SBY and Supreme Court can settle the dispute, although Supreme Court decision was favour to BNP2TKI, Depnakertrans still managed to create new Ministry Decree to continue the dispute.
2. Lack of Inter-Department Coordination
Not enough with problems created by the dispute by two Government institutions responsible for Placement of Indonesian Workers Overseas, it is also worsen by lack of coordination between those two Institutions with other stake holder Departments such as Department of Foreign Affair, Department of Health, Immigration, etc. It is often happens that between Departments do not trust the legal product issued by each government institution, and they tend to avoid interaction between departments. An experience case, when Binamandiri with many local regulations before PPTKIS can recruit the candidates from its region. wanted to apply Recruitment Letter for Canada Placement, Depnaker asked for Binamandiri to call Indonesia Consulate in Toronto rather than they use official letter and send by fax to confirm the validation of embassy letter.
3. Application of Regional Autonomy
The application of Regional Autonomy to Province and Region Government brought many additional problems toward recruitment of Indonesian workers. Although PPTKIS already license nationally, unfortunately because of Regional Autonomy, many province and regional governments, are burdening PPTKIS More often the local regulations are ridiculous and tend to prosper the illegal practices by Sponsor or Calo or whatever the terms is. For example in Banyuwangi, Jember, Kediri, PPTKIS cannot recruit on those area unless PPTKIS willing to set up UP3TKI (such small branch office) where the managers are the Calo or Sponsor, and under UP3TKI, they are legalize. UP3TKI can be considered illegal terminology as the law only mentions that the subjects of Placement are only Government and PPTKIS.
4. Poor Law Enforcement
It is typical of Indonesian Law Enforcement that still full of corruption and collusion. There are many cases of tormenting and neglecting Indonesian workers overseas that involve PPTKIS from the recent 78 female workers stranded for 3 days without food and money in Changi Airport on the way to Saudi Arabia, because the company until the common problems of underage workers, fabricated placement documents and inhuman accommodation and meal on Training Center, but yet from Binamandiri recollection, none of any PPTKIS license has been revoked due such actions
5. Lack and incompetent Officials
Many officials either in Central Government or in Local Government who responsible in Placement of Indonesian workers overseas are mostly never had any training about his/her duty. They comes from various background on previous department: sucah as department of agriculture, Underhead Subdistrict (camat), department of education, department of transportation and many others which not even close to handle workers. While the original officials of Department of Manpower who already has the experience and training, are also being transferred to other unrelated department. Beside need time to catch up with issues about placement, mostly lack of experience and create blunder in Department of Manpower.
6. Complicated procedure
Approximately there are 18 desks or offices or for PPTKIS to go through from recruitment until placement which previously were 22 offices claimed Erman Soeparno.
7. No POLITICAL WILL
Last but not least is NO POLITICAL WILL from the government. Placement of Indonesian workers overseas has started since 1970s until now, almost 40 years. Indonesian government actually can identify the problems, find the causes and look for the solutions but yet the problems getting bigger every year. Indonesia can reflect to Philippines where the can manage overseas placement very well, Why Philippines can do it but Indonesia cannot. It is required POLITICAL WILL.

Because of the 7 matters from the Indonesian government, it reflects towards PPTKIS. Public or candidates who want to work overseas think that to work overseas through Indonesian Manpower Agencies (PPTKIS) will be difficult, time and money consumptive, full of extortion, unsafe and many other bad images. That’s why the illegal placement getting higher every year.
The statistic survey held by NGO, informs that candidates for overseas placement get the information about procedure to work overseas from : Brooker/Calo/Sponsor (86%), Family (6%), Neighbor (6%) and Government/PPTKIS (2%). The statistic shows that Indonesian government doesn’t do his job very well to provide information about working overseas, so it is not the workers fault if they are stranded in illegal placement due to their incomprehension.

Beside from Indonesian Government, barrier also comes from News Media, due to unbalance report about Indonesian workers overseas. Media tends to blow up the misfortune incidents happens with Indonesia workers overseas who mostly using illegal procedure, where information about many success overseas workers are only very little. Thus create generalization that working overseas will always end up in sad and miserable story

Challenges in Recruitment
Beside barriers there are also challenges in recruitment, thus are :

1. Overseas demands are increasing every time and the jobs become for specific, it is a big challenge to seek appropriate candidates. There are a big need to create courses and profession school for specific job so that fresh graduates can have soft skill to take the demand from overseas
2. Lack of English or Foreign language always an issues that we always lose the competition with the Philippines
3. Competition among nations is getting tighter. Now new competitors have emerge, where previously only Philippines, now China, Cambodia, Vietnam, India, and Pakistan are the new competitors
4. Lack of fund from the candidates. Indonesian Banking system is not favour to Indonesian workers, although they have support income for Indonesian banks from remittance, 10 trillion Rupiah each year. So difficult access to bank loan to arrange for the placement expenses, sometimes become problem for the candidates, it is a challenge for Binamandiri to provide access to bank loan with the guarantee of their job order.

Binamandiri gave suggestion as part of the solution that hopefully can be a starting point to reform the National programs of placement of Indonesian workers.

1. Firstly, there is an urgent need to revise Ordinance No.39/2004 to be more comprehensive.
2. Secondly, Indonesian Government must create strong and firm law enforcement to uphold all laws and a procedure referring to placement of workers overseas as it is related to other countries business which eventually can create problems towards destination countries.
3. Thirdly, Establishing Online System will cut time, cost, and obviously problems, and it is also will be more transparent, accountable and controllable
4. The last and most important suggestion, it is advised that education about working overseas should be applied as early as possible such as Philippines. So that, since early time, candidates can set their objectives after their graduate from school, understand the procedure to work overseas and surely understand about the rights and duty.

Taiwan New Health Measure

On its letter dated 28 September 2009, Taiwan Economic and Trade Office (TETO) will apply new health measurement which will be put effectively on 15 October 2009.
The new health measurement is every worker who is placed to Taiwan, must undergo Typhus Health Check at appointed Medical Laboratories.
Fail to comply with the measurement, will be affected on suspension to apply new visa for period of 2 weeks until 4 weeks.