IOM Indonesia is working to promote links between migration and development with banks, remittance service providers and key government agencies through an IOM study of the Malaysia – Indonesia remittance corridor.
At a Roundtable funded by the European Commission’s AENEAS programme in Jakarta last week, IOM and remittance service providers discussed market profiles and remittance behaviours of Indonesian migrants with a view to bridging the information gap and promoting healthy competition and product development among service providers.
Remittances can play a vital role in economic development. In 2008 alone, Indonesian labour migrants sent home US$ 6.6 billion to their families.
The IOM study, which was carried out in collaboration with the Economic Resource Centre for Overseas Filipinos (ERCOF), showed that that most migrants consider safety as the most important factor when deciding how to remit funds (34%.) Speed was next (28%), followed by ease of procedure (22%.) Remittance fees only came in fourth place (18%.)
Other findings showed that most labour migrants often use informal modes of remittance transfer. Some 34% of migrants used foreign exchange houses, but 21% per cent said that they themselves, family members or friends carried their remittances by hand. Most of the migrants using exchange houses were technical or service workers, or professionals.
The study was part of an IOM project: Understanding the Remittance Behavior of Indonesians Migrants For Enhanced Remittance Services.
For further information, please contact Cecilia Cantos at IOM Jakarta, Tel: +62-21-5795 1275 (ex 245), Email: ccantos # iom.int. Or Aiko Kikkawa at IOM Manila, Tel: +632 848 1260 (ex 152), Email: akikkawa # iom.int
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