Indonesia Postpones Placement Fee Policy; Hiring Domestic Workers Might Become More Expensive

For a long time, domestic workers have had a reputation for being beneficial, effective and generally affordable.

But times change.

It appears that the rates may, well, soon be increased.

Indonesia Postpones Placement Fee Policy; Hiring Domestic Workers Might Become More Expensive

According to Channel News Asia, Indonesia has delayed a new policy that could see increased rates being paid for foreign domestic workers.

For those unaware, the upcoming exemption of placement fee policy will free Indonesian migrant workers in 10 job sectors from their own placement and training fees.

Instead, the expenses will be settled by the Indonesian provincial government.

The policy was originally set for launch on 15 Jan.

However, due to “several factors”, the implementation has since been pushed back to mid-July.

One reason, said Mr Tatang Razak, Indonesia’s chief secretary of the government agency for the protection of migrant workers (BP2MI), is that the Indonesian provincial government does “not seem to be ready”.

The infrastructure for training sessions, for instance, is not yet ready in several regions.

“After observing and seeing the objective conditions on the ground, especially the infrastructure for training (of migrant workers) in regions (within Indonesia), it seems that many are not ready,” Mr Razak said.

Sudden

According to President of the Singapore Accredited Employment Agencies Association Brian Tan, agencies first learnt of the news in January – through the Indonesian embassy.

It was “sudden”, he said. But the delay did grant more adjustment time on the employers’ part.

There is, after all, the likely possibility that employers may have to pay more in the future – a notion they would have to get used to.

“There’s a cost in the placement of foreign domestic workers (FDWs), be it for training, food and lodging and all that. Currently, with the placement loan, the FDW bears some of the cost, but if the Indonesian government wants to proceed with this policy, then the cost has to be parked somewhere.”

“Ultimately, if the zero placement fee (policy) goes ahead, what would likely happen is that employers may bear the brunt of the burden. If that happens, Indonesian FDWs may become a little bit more costly to hire,” Mr Tan said.

It should be noted that amidst these tumultuous times, employers already have to fork out extra for stay-home notice and coronavirus testing.

“That is a concern to them, especially in the context of COVID-19.”

Concerned

Iit appears that employers have already expressed concerns about such costs.

To the point where demand for Indonesian workers actually dipped momentarily.

However, the delay has seen things return to normal.

Nevertheless, the policy has prompted calls for reconsideration, as well as the hope that the relevant authorities will be able to discover a win-win solution.

“We can’t control what the government in Indonesia wants or plans to do,” said Mr Matthew Lee, manager at Raymond Maids Employment Agency.

“What we hope is that they will reconsider this policy and hopefully find a win-win, viable solution moving forward.”

Foreign Domestic Workers

Since the Coronavirus outbreak, foreign domestic workers in Singapore have largely faced dissatisfaction in their new lifestyles.

Most of us know that all FDWs are entitled to one rest day a week, where they usually go out to meet with their friends or do some shopping.

Because of the pandemic, however, they were advised to stay home on all days of the week – a notion that held true until the Phase 2 reopening.

Additionally, they have also faced dwindling job prospects.

According to an interview by The New Paper with the director of the employment agency Workforce Manpower, Mr Michael Khan, one Filipina domestic worker had her work permit cancelled because “her employer told her she could not afford to pay her if she was quarantined”.

With potential rising costs, these prospects may not be due for an upheaval unless some re-evaluation is done.

Image: Dr David Sing / Shutterstock.com