MICROCAPITAL BRIEF: President of Indonesia, Susilo Bambang Yudhoyono, Signs Agreement to Provide Microcredit to Indonesian Workers in Malaysia

The President of Indonesia, Susilo Bambang Yudhoyono, has signed an agreement that will support Indonesian workers who have migrated to Malaysia for work. The agreement states that the Indonesian government will provide microcredit to Indonesian workers in Malaysia so that they have “initial capital,” according to President Yudhoyono. Additionally, the Indonesian government has signed an agreement with the Malaysian government to protect Indonesian worker’s rights in Malaysia. Included in the agreement is a worker’s right to take a day off on one day per week, a worker’s right to hold his or her own passport and the right to be paid according to a contract [1]. According to MIX Market, Indonesia has 59 microfinance institutions (MFIs) with total assets of USD 110.1 million, and Malaysia has one MFI with total assets of USD 231.8 million [2].

According to President Yudhoyono, the goal is to increase Indonesian workers’ welfare in Malaysia [1].

By Julia Korn, Research Associate

Sources:

[1] Tempo Interactive. “President: Migrant Workers will Obtain a Micro-Credit Support Program,” by Dwi Riyanto, May 19, 2010. http://www.tempointeractive.com/hg/nasional/2010/05/19/brk,20100519-2488…

[2] MIX Market. http://www.mixmarket.org/

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