Taiwan Ranked Top Destination for Indonesian Migrant Workers in 2023, While Japan Placed Fifth

Publish
2024/12/13
Update
2025/08/16
You can read this article in 4minutes

The number of Indonesian migrant workers has been on the rise in recent years, returning to pre-pandemic levels by 2023.

Indonesia, the fourth most populous country in the world and the largest in Southeast Asia, commands significant attention in both domestic and international labor markets. The number of migrant workers is expected to continue increasing in the future.

What are the underlying factors behind the rise in Indonesian migrant workers?

This article first presents the ranking of destination countries for Indonesian migrant workers. It then explores the background behind the increasing numbers and features individuals aiming to work in Japan, supported by relevant data and video content.

Why Entering the Indonesian Market is Particularly Challenging
● Foreign-owned corporation ⮕ Requires paid-in capital of 1 billion Rupiah
● Domestic corporation     ⮕ Foreign companies cannot be shareholders

Are you curious about how other companies are expanding into Indonesia?

Indonesian Migrant Workers in Numbers

Taiwan Ranked First as Destination; Japan Ranked Fifth

Prepared by PT. TRICRUISE MARKETING INDONESIA based on databoks, “Ini Daftar Negara Tujuan Utama Pekerja Migran Indonesia Sepanjang 2023, Taiwan Juaranya”

According to a report by Indonesia’s Agency for the Protection of Indonesian Migrant Workers (BP2MI), a total of 274,965 Indonesian migrant workers departed the country in 2023. This figure represents a 37% increase from the previous year and a 176% increase compared to 2021, effectively returning to pre-COVID-19 levels.

The most popular destination was Taiwan, which received 83,216 Indonesian workers, accounting for 30.3% of the total.

Malaysia ranked second with 72,260 workers, followed by Hong Kong in third place with 65,916, and South Korea in fourth with 12,580. Japan was the fifth most common destination, with 9,673 Indonesian workers.

In Taiwan, Hong Kong, South Korea, and Japan, there is high demand not only for farm and factory workers but especially for caregivers. In contrast, countries in Southeast Asia such as Malaysia, as well as parts of the Middle East, tend to demand more domestic workers, babysitters, and plantation laborers.

According to statistics from January to August 2024, the rankings slightly shifted: Hong Kong ranked first, followed by Taiwan, Malaysia, Japan, and South Korea in that order. Therefore, the overall ranking for 2024 may differ from that of 2023.

Sources:
databoks, “Ini Daftar Negara Tujuan Utama Pekerja Migran Indonesia Sepanjang 2023, Taiwan Juaranya”
Antaranews, “Deretan negara yang didominasi pekerja migran Indonesia”

Relationship Between High Unemployment and the Number of Migrant Workers

One key factor behind the increase in migrant workers is Indonesia’s high domestic unemployment rate. As of February 2024, the national unemployment rate stood at 4.8%. While this marks an improvement from the peak of over 6% during the COVID-19 pandemic, it remains relatively high.

Some experts point out that the decline in the unemployment rate is primarily due to an increase in employment within the informal sector. In fact, according to the National Labor Force Survey in February 2024, out of 142.18 million employed persons, 84.13 million—or 59.2%—were engaged in informal sector jobs.

The proportion of informal sector workers increased by 3.29 percentage points between August 2019 and February 2024. Many of those who lost their jobs during the pandemic have not returned to the formal sector and are instead working in informal settings. Thus, a lower unemployment rate does not necessarily equate to stable employment or improved living conditions.

In light of this, the Indonesian government is proactively promoting the deployment of migrant workers to lower the unemployment rate and secure foreign currency. In September 2024, the Minister of Manpower announced a revised target for the number of Indonesian workers dispatched under the Specified Skilled Worker (SSW) program: increasing from 100,000 over five years to 250,000 over the same period.

Sources:
BPS, “Tingkat Pengangguran Terbuka (TPT) sebesar 4,82 persen dan Rata-rata upah buruh sebesar 3,04 juta rupiah per bulan”
CNBC Indonesia, “Cari Kerja Sulit, Warga RI Ramai Kabur ke Luar Negeri Demi Sesuap Nasi”

Precautions when conducting an on-site inspection in Indonesia

Some visitors consider, "My primary purpose is to conduct maintenance work at the factory, but the visa application process appears cumbersome. I will simply enter on a Visa on Arrival (VOA) and carry out the work discreetly."

However, there have been numerous cases where entering without the appropriate visa for the intended activities has resulted in significant legal and operational issues. It is therefore strongly advised to obtain the correct visa prior to travel.

Here are the types of visas and their purposes.

Indonesian Migrant Workers Through Video

Indonesian Woman Departing for Japan

Watch the Video

This video captures a woman preparing to depart from an Indonesian airport to Japan, having secured employment through the Specified Skilled Worker (SSW) program. She first exchanges hugs and handshakes with her family. A man in a uniform bearing the Japanese flag on his sleeve appears to be a staff member from the vocational training institute (LPK) where she studied.

As of August 2024, women accounted for 69.8% of all Indonesian migrant workers. This trend is largely driven by high demand for jobs typically filled by women—such as domestic workers, babysitters, and caregivers—at overseas destinations. Additionally, factors such as greater difficulty for women to find employment and wage disparities in Indonesia are also believed to contribute.

At the same time, the trend of women going abroad for work can also be seen as a sign of increased female independence.

In the past, women who had finished high school or vocational school but could not pursue further education or secure employment would typically stay at home to help with household chores or family businesses while searching for a spouse. Today, having the option to actively pursue work abroad is viewed by some as a powerful driver of women’s independence.

Source:
CNBC Indonesia, “Cari Kerja Sulit, Warga RI Ramai Kabur ke Luar Negeri Demi Sesuap Nasi”

In-House Testing at LPKs as Gateway to Japan

Watch the Video

This video shows a test administered by an LPK (vocational training institute) preparing candidates for work in Japan.

Some LPKs conduct such tests to assess whether trainees are physically and mentally prepared for life and work in Japan.

The scenes of students running or doing sit-ups are part of a physical fitness test. Typically, other components such as basic Japanese language exams, interviews, and psychological assessments are also administered. Those who pass are given access to job listings and can register for matching opportunities, significantly increasing their chances of working in Japan.

Indonesian Workers Gaining Global Attention

Indonesian migrant workers play an essential role in both domestic and international labor markets. In addition to domestic challenges such as difficulty in finding employment, rising demand for labor overseas is also a significant factor influencing their mobility. Japan, of course, remains one of Indonesia’s key partner countries.

If your organization is interested in vocational training or workforce dispatch services in Indonesia, please do not hesitate to contact PT. TRICRUISE MARKETING INDONESIA.

Remaining: 4863 characters
Sign up for Newsletter Membership