Greetings! Fellow members

Indonesian’s Household Service Workers Industry Scheme

In Jan 2012, Indonesia Manpower and Transmigration Ministry made the announcement that it will stop sending maids abroad by 2017. The Minister also said ‘that should Indonesia continue sending domestic workers overseas, they had to be treated the same as formal workers.’

In Feb 2015, President Jokowi reiterated that ‘Indonesia will stop sending its women to work as maids overseas; and that he has given Manpower Minister a target to come up with a clear roadmap on when they can stop sending female domestic workers.’

Indonesia has clearly expressed its intent for this foreign worker sector.

In Nov 2015 BNP2TKI approached AEA(S) to collaborate with them to develop a new scheme to reform the industry for the protection of Indonesian workers going overseas to work as household service workers or HSW. BNP2TKI appointed AEA(S) to implement a pilot HSW Industry Scheme or HIS with the signing of a MOU with on the 19 Feb 2016.

AEA(S)’s Vision for Industry Transformation

AEA(S) has been working on an industry transformation since we announced it in Feb 2013. We know that business cannot be as usual and the industry has to transform in view of major changes in Singapore and the source countries.

On the demand side, Singapore mothers need HSWs to free themselves for work outside the homes. We also know that our society is aging and the number of seniors above 65 years old will increase rapidly. They will need caregivers to reduce the demand for institutional care. Therefore, the role of HSWs has a significant impact on Singapore’s economic and social fabrics.

On the supply side, we must respect the sentiments and sensitivities of our neighbours who provide HSWs to Singapore. They have their aspirations like us. Their citizens working in Singapore must be accorded similar treatment and protection. To secure our HSW supply, we must abide by their rules and regulations. Otherwise, source countries can react negatively. Indonesia is our largest supply country and we cannot afford to mismanage and lose this HSW supply source.

AEA(S) has taken on the industry leadership role to secure our HSW supply and consequently to protect our businesses. We need to deal with the many facets of this complex. I am sure many of us face tremendous challenges and business risks in the current industry environment. Therefore, we need to change. We need to rethink our industry because we have a great future with increasing demand for HSWs.  Singapore needs 300,000 HSWs by 2030 or about 25% increase in business for all of us. We need to do the right things, and do them right so that we can do our business in peace and profitably.

AEA(S) has been working on a new industry model for 3 years after visiting and consulting all source country authorities. It is erroneous to believe that all the industry ills are attributed to the EAs. We have taken a holistic approach to transform the industry by solving problems on both sides and for all related parties.

As the only experienced industry group, AEA(S) knows and wants to implement HIS so that all EAs have the opportunity to compete fairly and provide quality HSWs and services to our customers. I seek the support of EAs to join the HIS on a voluntary basis.  The HIS is the only direction the industry can take to secure our supply from Indonesia and for all EAs to grow professionally. There is no other way.

Indonesia Finance Scheme

Pak Nusron Wahid, Chairman of BNP2TKI announced on 15 June 2016 that HSW who uses the Indonesian finance scheme (under the HIS) are allowed to leave to work overseas. Therefore, EAs are to urge their partner PPTKIS to contact BNP2TKI and Maybank Indonesia to qualify themselves so that they can continue to send their HSW to Singapore.