"We are seeking solutions for the capital needs of migrant workers who will go abroad or when returning to Indonesia after working abroad," Deputy Minister of Cooperatives Ferry Juliantono noted in a statement from his office on Saturday.
His side supports financing migrant workers' placement through its Fund Management Institution for Cooperatives, Micro, Small, and Medium Enterprises (LPDB-KUMKM).
According to Juliantono, capital needs remain the main problem for Indonesian migrant workers who want to depart abroad.
"They need financing for document preparation, training, accommodation, and others. Therefore, the P2MI Ministry will partner with LPDB-KUMKM," he explained.
With access to capital from LPDB-KUMKM, migrant worker cooperatives can also become a forum for economic empowerment for their members.
Deputy Minister of P2MI Christina Aryani also remarked that Indonesian migrant workers have experienced difficulty in accessing capital from banks.
She pointed out that access to People's Business Credit (KUR) has also been unable to meet the capital needs of migrant workers before departing abroad.
"From 2007 to 2024, five million migrant workers were placed abroad. Most of them come from East Java, Central Java, West Java, West Nusa Tenggara, and Lampung," Aryani remarked.
According to the P2MI deputy minister, the migrant workers had difficulty accessing capital from banks, especially through KUR.
Hence, she expressed hope that LPDB-KUMKM would support migrant worker cooperatives, especially those supporting migrant workers' empowerment.
Meanwhile, LPDB-KUMKM President Director Supomo conveyed his goal of supporting the capital needs of Indonesian migrant workers.
"We hope we can incubate existing migrant workers cooperatives so they can gain access to funding," he stated.
In connection with this matter, Supomo said his side seeks legal certainty that specifically regulates the flow of the loan or financing process to cooperatives fostered by the Ministry of P2MI to ensure that the capital can later be utilized to address migrant workers' requirements.
Through synergy between the government and various institutions, this program is expected to benefit Indonesian migrant workers and strengthen cooperatives as a pillar of the national economy.
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Translator: Sinta Ambarwati, Resinta Sulistiyandari
Editor: Rahmad Nasution
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