HSW Industry Scheme

BNP2TKI - AEA(S) HIS MOU

The HIS MOU is a legal framework for BNP2TKI and AEA(S) to collaborate over 5 years. During this period, BNP2TKI’s plan is to accomplish the following strategic objectives:

  1. Implementation of HSW Industry Scheme (HIS) with new HSW Cost Structure, Bank Scheme to finance HSW employment service fees, and new documents for Employment Agreement, Service Agreement and Recruitment Agreement to protect the HSWs.

  2. Implementation of a formal and authorised training and assessment system. This is to establish basic skill requirements for the HSWs.

  3. Strengthening enforcement by connecting overseas Mediation Centre with Indonesian Directorate of Mediation and Advocacy; and to reduce the number of illegal placements. 

  4. Empowering HSW livelihood and welfare when they return to Indonesia.


HIS Requirements

From 15 June 2016, HSW who use the Indonesian finance scheme (under the HIS) can leave to work overseas. HSW who do not take up the Indonesian finance scheme will not be issued with E-KTKLN to facilitate their departure. The HIS is summarised as follows:

  1. Qualification – All EAs and PPTKIS must be qualified by BNP2TKI’s approved standards. AEA(S)’s EA TRUST is developed to meet Indonesian standards to qualify EAs. Only EAs with EA TRUST (Indonesia) are trained to provide employment services under HIS. Those who agree to participate is also not allowed to bring in Indonesians outside the scheme. Errant EAs will be disqualified from EA TRUST and HIS.

  2. Training and Assessment - AEA(S) will propose to BNP2TKI a HSW competency standards and assessment methodology. This is a very important factor on both sides. For Indonesia, it is one of their strategic objectives. For Singapore, it will ensure that HSWs are properly equipped to work for their prospective employers.

  3. Bank Loan (KUR) – Maybank is presently the only nominated bank ready to provide the loan to the HSWs. The procedure is summarised as follows:   
    a. Upon IPA, the HSW will open an account and obtain a loan to pay her PPTKIS.
    b. On arrival, EA must make an appointment with one of the four branches of Maybank to activate her account.
    c. Employer must deposit HSW salary at the end of each month. Anniversary month for salary payment is not allowed.
    d. HSW will repay her loan and EA Service fee through her personal bank account.
    e. If there is a salary default in due date or amount, the EA will be informed to take remedial action with the employer.
    f.  EA must inform HIS Administration on the termination and transfer of the HSW to a new employer or repatriation to home country.

  4. Mediation – Under the new Service Agreements and Employment Contract, HIS participants are required on a mandatory basis to refer all complaints and abuses including late and wrong salary payment to AEA(S) Mediation Centre.

  5. Employment Renewal – Under HIS, all HSWs who complete a 2-year contract must apply for a new EC for transfer to a new employer or renewal for the same employer.