The Placement Model for Indonesian Migrant Workers to Improve their Economic Welfare

Objective – Indonesian Migrant Workers (TKI) have an important role in employment. In 2015, the number of migrants who worked abroad reached more than seven million people. Despite the huge number, Indonesian Migrant workers are prone to problems encompassing: pre-placement, placement, and post-placement phases. This study aims to analyze the priority factors affecting migrant workers at the three phases as a means to determine their work success. This study also aims to develop a placement model for Indonesian migrant workers especially in the formal sector so as to better improve their welfare. Methodology/Technique – To build a model of migrant workers for the formal sector, this study uses two approaches: 1) Analytical Hierarchy Process (AHP) and 2) Qualitative Analysis which is based on in-depth interviews and focused group discussions. Findings – The results showed that the priority factors that determine migrant workers' success include the three phases: the placement phase with a value of 0.523198; the pre-placement phase with a value of 0.289185; and the post-placement phase with a value of 0.187617. In addition, it is found that the formal sector placement policy should be conducted in collaboration with the countries of destination, especially in the recruitment patterns, the substance of contract, and legal protection. It is suggested that countries that have cooperated in the placement of migrant workers with the G-to-G (Government to Government) model is Japan and South Korea while the placement to other countries of destination is done with the B-to-B (Business to Business) model. Novelty – The main model recommended in this study is the G to G model which should be implemented in order to safeguard migrant workers as well as to ensure that this model is formulated in policies and government regulations. Type of Paper: Empirical.