Monitoring the Socioeconomic Impact of the 2008/2009 Global Financial Crisis in Indonesia - the Impact on the Livelihoods of Families Dependent on Migrant Workers in Kabupaten Malang: Results of the Second-round Monitoring

Nina Toyamah • Rachma Indah Nurbani
Report SMERU Research Institute • September 2010 Indonesia • South Korea

Abstract

During the first visit in September 2009, there were indications that the people most affected by the 2008/09 global financial crisis (GFC) were the Indonesian migrant workers working in the Republic of Korea (South Korea). This second visit was undertaken to confirm the findings of the first visit. The research was, therefore, focused on the migrant workers who had just returned from Korea as well as their families. Apart from these former migrant workers, the visit also looked at former Indonesian migrant workers in other countries because there were indications that they had also been affected by the GFC. During the September–December 2009 period, the severity of the impact of crisis varied between sectors and between types of work in the same sector. Migrant workers in the automotive sector were the most affected. They felt the impact most in the loss or reduction in the amount of overtime that indirectly resulted in a fall in the level of remittances sent to their families in Indonesia. Some Indonesian migrant workers in Korea were laid off, but they did not return home immediately. Instead, they sought work in other companies, especially, in the agribusiness sector, by using a reference provided by their former employer.

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SMERU Research Institute

Since its establishment in 2001, SMERU has been a leader in poverty and inequality research in In... see more

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Bappenas

DFAT | AusAID