The Impact of Indonesians Working Abroad

A report from the World Bank recently discussed the opportunities that Indonesians have to work abroad. Currently, approximately 7% of the Indonesian population is a migrant worker. In 2016, the nine million Indonesians who worked abroad sent home approximately the equivalent of 9 billion USD, which has contributed significantly to the economy, both in homes and nationally. They earn, on average, 4-6 times as much as they would in Indonesia. The skills learned abroad help to improve their lives by allowing them access to better jobs, and by reducing the likelihood of poverty by about 28%. Many households put their income into savings accounts, education, and business capital.                       

 Read more about migrant workers here.

As one can imagine, there are social costs when people leave their homes for an extended period. There are some villages where most men are absent from their homes for most of the year. Women also travel for work, although generally less than men. This prolonged absence can cause tension and hardship for families. Although there are economic advantages to working abroad, the social disadvantages for families and villages can be difficult to overcome.

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