Indonesian Migrant Workers' Remittances Reach Rp 136 Trillion by Mid-2025

Significant Contribution to National Economy

Indonesian migrant workers, officially known as Pekerja Migran Indonesia (PMI), have made a substantial contribution to the country's foreign exchange reserves. By the second quarter of 2025, they have remitted US$ 8.4 billion, equivalent to approximately Rp 136 trillion. This significant inflow of funds highlights the crucial role that Indonesian workers abroad play in supporting the national economy.

Comparative Analysis with Neighboring Countries

While the Rp 136 trillion remitted by Indonesian migrant workers is substantial, it still lags behind neighboring countries like the Philippines. In 2024, the Philippines received around Rp 600 trillion in remittances. According to Minister Mukhtarudin, this disparity is largely due to the more structured migrant worker system in the Philippines, which includes financial education starting from elementary school level.

Government Initiatives to Enhance Migrant Worker Ecosystem

The Indonesian government is taking proactive steps to improve the migrant worker system. One of the key initiatives is the establishment of Migran Center in various educational institutions. For instance, Migran Center initiatives are being implemented at six universities, including the planned launch of Migran Center Unhas and Pasim Bandung Migran Center. Additionally, the government is working on introducing a 'Sekolah Rakyat' (People's School) program that will integrate migrant worker education into the curriculum.

Economic Impact and Future Prospects

In 2024, Indonesian migrant workers remitted US$ 15.7 billion (Rp 253.9 trillion), which accounted for about 1% of Indonesia's GDP. With 233,000 migrant workers placed in 2025, the government is optimistic about increasing these numbers through better protection and education. The initiatives are aimed at not only enhancing the contribution of migrant workers but also ensuring their welfare and protection abroad.