HOUSEHOLD SERVICE

WORKER INDUSTRY SCHEME

INDONESIA

HOUSEHOLD SERVICE WORKER INDUSTRY SCHEME - INDONESIA

� 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.’

President Joko Widodo said Indonesia will stop sending its women to work

as maids overseas to preserve the country's dignity - and is working on a

target to enforce this.

"I have given Manpower Minister a target to come up with a

clear roadmap on when we can stop sending female domestic

workers.

We should have pride and dignity," he said in a speech at the Hanura

party's national congress in Solo, Central Java, late on Friday night.

Mr Joko, who visited Malaysia, Brunei and the Philippines last week, said

he felt ashamed and upset when discussing the issue with Malaysia. "There

are only three countries in the world supplying domestic workers, two are in

Asia and one in Africa. One of those in Asia is Indonesia. This is a matter of

dignity. It was really shameful (speaking about this) during our bilateral with

Malaysia," he added.

Indonesia will stop sending its women to work

as maids overseas, says Jokowi

PUBLISHED FEB 14, 2015, 10:53 PM SGT

http://www.straitstimes.com/asia/se-asia/indonesia-will-stop-sending-its-women-to-work-as-maids-overseas-says-jokowihttp://www.thejakartapost.com/news/2012/01/04/ri-stop-sending-maids-abroad-

2017.html

HOUSEHOLD SERVICE WORKER INDUSTRY SCHEME - INDONESIA

� Dec 2015 NBPPIOW approached AEA(S) to assist 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.

� 19 Feb 2016 NBPPIOW signed a MOU with AEA(S).

� 1 May 2016 NBPPIOW has announced that all HSWs shall only be recruited and deployed through the Finance Scheme.

� HIS is an Indonesian National Project and AEA(S) is honoured to be

chosen to implement the HIS as the PILOT PROJECT for NBPPIOW.

AEA(S) VisonIndustry Transformation 2013

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

� Demand - Singapore mothers need HSWs to free themselves for workoutside the homes. We also know that our society is aging and the numberof seniors above 65 years old will increase rapidly. They will need caregiversto reduce the demand for institutional care.

� Therefore, the role of HSWs has a significant impact on Singapore’s economicand social fabrics.

AEA(S) VisonIndustry Transformation 2013

� Supply, we must respect the sentiments and sensitivities of our neighbourswho provide HSWs to Singapore.

� They have their aspirations like us. Their citizens working in Singapore mustbe accorded similar treatment and must be protected like our localworkers.

� To secure our HSW supply, we must abide by their rules and regulations.Otherwise, source countries can react negatively as in the case of thePhilippines.

� Indonesia is our largest supply country and we cannot afford to mismanageand lose this HSW supply source.

AEA(S) VisonIndustry Transformation 2013

� AEA(S) has taken on the industry leadership role to secure our HSW supply and consequently protect our businesses.

� We face tremendous challenges and business risks in the current industry environment.

� 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) VisonIndustry Transformation 2013

� AEA(S) has been working on a new industry model for 3 years by visiting and consulting all source country authorities.

� We have taken a holistic approach to transform the industry by solving problems on both sides and for all related parties.

� As the only established industry group, AEA(S) knows and wants to implement HIS so that all EAs have the opportunity to compete fairly and provide quality HSWs, services to our customers and grow professionally.

� It is erroneous to believe that all the industry ills are attributed to the EAs.

� We need to educate and change the Employer’s mind-set.

� HIS is the only DIRECTION to secure our supply from Indonesia

HIS MOU & LEGAL FRAMEWORK

HIS MOU & LEGAL FRAMEWORK

� HIS MOU is a legal framework for NBPPIOW and AEA(S) to collaborate exclusively over 5 years. To accomplish the following strategic objectives:

1. Implementation of HSW Industry Scheme (HIS)

A. New HSW Cost Structure & Bank Scheme to finance HSW employment service fees

B. New documents for Employment Agreement, Service Agreement and Recruitment Agreement to ensure transparency

2. Implementation of a formal and authorised Training and Assessment system which is Demand Driven.

3. Strengthening enforcement by connecting overseas Mediation Centre and to reduce the number of illegal placements.

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

HIS PRE-QUALIFICATION AND PROCESS

PPTKIS & EAs – Qualified under EA Trust

� All Employment Agencies (EA) and Indonesian Recruitment Agencies(PPTKIS) must be qualified by NBPPIOW’s (BNP2TKI) approved standards.

� EA TRUST (Indonesia) – AEA(S)’s will facilitate to qualify EAs through a desk audit and training program.

� PPTKIS will be qualified on a similar program by NBPPIOW

� Participating PPTKIS & EAs shall only recruit & deploy through the scheme for Indonesian HSW to work in Singapore. All other channels are considered illegal.

� Participating PPTKIS & EAS shall follow the scheme strictly.

� Errant EAs & PPTKIS will be disqualified from EA TRUST and HIS by NBPPIOW

KBRI Processes – Simplified & Expedited� JOB ORDER (JO)

�JO will be processed by KBRI & have 2-year validity with a maximum quota of 100 per JO.

�Notarisation for JO and AN 01/R01 and Authorisation Letter is removed.

�EA TRUST Certificate and PPTKIS Letter of Undertaking to NBPPIOW will replace the above.

�A new Standard Recruitment Agreement shall replace the existing Recruitment Agreement.

� Employment Contract Endorsement (EC)

�KBRI will process the Employment Contract (EC). A new Standard Employment Contract shall replace the existing.

� JO and EC application shall be processed within 3 days

NEW COST STRUCTURE & FINANCE SCHEME

HSW Cost Structure & Service Fees

B. Cost Preparation & Training

Passport Rp. 255.000 Equipment &

Material Practices

Rp . 2.000.000

Local Transport Rp. 0 Competency Test Rp . 150.000

Accommodation Food &

Training

Rp . 4.000.000

Total B Rp . 6.405.000

TOTAL A + B Rp. 12.397.000

A. Placement Fee

Visa borne by the Employer Rp . 0 Insurance Protection Rp . 400.000

Departure Ticket Rp . 1.442.000 Medical Rp . 700.000

Airport Tax & Handling Rp . 300.000 Agency Fee Rp . 3.150.000

Total A Rp . 5.992.000

C. Cost of service fee in Singapore agreed for 2 years ( contract ) is SGD 1,000

D. The minimum salary for Indonesian Labor Formal Sector is SGD 550

E Return ticket costs borne by the Employer

F. Cost Allowance ( Living Cost) for the family of migrant workers allowed to Rp 3,000,000

Bank Scheme

� Within Java Rp15,397,000 @ 9500 = S$1620

� 8 Monthly Instalment Repayment Rp 1,991.111- S$209 approximately

� Non Java Rp16,538,000 @ 9500 = S$1740

� 8 Monthly Instalment Repayment Rp. 2,138,663 – S$225 approximately

� Monthly Salary to be Credited to Maybank Singapore FDW Personal Account

� Monthly Transferred S$ 300 to FDW Indonesian Bank Account

� Balance Salary to be maintained in Maybank Singapore FDW personal Account

Training /Assessment & Certification

� AEA(S) will jointly develop with NBPPIOW Training / Assessment / Certification.

� To establish standardised basic skill requirements for the HSWs.

� Include both Practical Skills and mental preparedness for Foreign Employment

� HSWs are required to obtain Competency Certificate or HCC. Pre Test or Post Test.

� Implemented in July

� Removed 400 Hours mandatory training but will adopt a new curriculum to meet the HSW Competency Standards.

� For Indonesia, it is one of their strategic objectives to deploy only certified candidates

� For Singapore, it will ensure that HSWs are properly equipped to work and meet the requirements for their prospective employers .

Standard Agreements

Standard Agreements

The MOU Articles have been integrated into a set of new Recruitment Agreement, Service Agreements between HSW and PPTKIS/EA, and Employment Contract.

1. New Recruitment Agreement

1. Bio Data Fee Charged by PPTKIS

2. Guarantee & Guarantee Period

3. Responsibilities of Parties in the event of successful/unsuccessful deployment

2. Employment Contract & Job Offer

1. Mandatory Job Offer Form to be singed before IPA

2. Employer to return to EA in the event of contract termination

3. If premature termination & repatriation of HSW without the knowledge and concurrence of EA. Employer is liable for balance bank loan & EA Fee

Standard Agreements

1. PPTKIS & HSW Service Agreement

1. Cost Structure & Bank Scheme to be strictly followed

2. HSW commitment to work in Singapore for 2 Years

2. EA & HSW Service Agreement

1. HSW to pay EA Service Fee and complete it regardless of engaging another EA.

2. No Transfer Fee to be charged to the HSW. As the service fee (20x$50) is being paid by HSW to EA for both deployment services and 2 years continued assistance.

AEA(S) Mediation Centre (AMC)

Mediation Centre

� 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 AMC.

� AMC is required to report all wrong doings to NBPPIOW.

� Errant PPTKIS & EAs maybe have their qualification suspended or terminated.

� Strengthening enforcement by connecting to overseas Mediation Centre with Indonesian Directorate of Mediation and Advocacy.

HSW Welfare & Empowerment

HSW Welfare & Empowerment

� Reduce the Illegal Recruitment and Placements of HSW through Unlicensed Agents and Direct Hire

� HSWs to be provided Fair, Transparent Terms and Protection.

� Employment Transfer and Renewal regulated and monitored under HIS

� HSWs who complete a 2-year contract must apply for a new EC for Renewal

� New EC Application for Transfer

� Continued Insurance Coverage @ Source

� Facilitate Livelihood and Welfare when they return to Indonesia – Micro Loan

Benefits to All Parties

Benefits of the Scheme

1. HSW:

a. The HSW will know the exact fees charged by the PPTKIS and EA.

b. Loan deductions are from her salary deposited by the Employer into a Bank Account. HSW is responsible and manages her liabilities herself

c. HSW does not have to pay transfer fees

d. After paying her for her loan and EA service fee, HSW has money to remit from first month.

e. Better prepared to work in Singapore thru certification.

2. PPTKIS:

a. Fee is close to industry level and acceptable.

b. Working capital is available from MayBank

c. The fee amount provided to PPTKIS covers existing arrangement with sponsor but it will be progressively reduced by the Indonesian Government.

d. The practice of HSWs shifting from one PPTKIS to another will be controlled thru a ID Tracking system – lowering the loss and risk

e. PPTKIS will have increased business as more HSWs will prefer to be recruited through the correct channel

Benefits of the Scheme4. EA:

a. Protected $1000 Service Fee payable in 20 equal monthly instalments ie. $50/month.

b. HSW going to another EA for transfer as she must complete payment to the first EA

c. HSW has less incentive to transfer and use another EA.

d. HSW cannot transfer more than 3 times within her 1-year contract- she will be required to be repatriated

e. EA’s advance payments or deposits for biodata are protected by the bank scheme. Their business risk is reduced.

f. Employer is contractually bound to compensate for outstanding HSW loan and EA Service Fee in the Employment Contract.

5. The Employer:

� Employer will not be burdened with a high upfront payment for the HSW Placement Fee. No risk of Placement Fee being forfeited in the event of HSW running to NGOs or KBRI.

� HSW Competency Certification (HCC). HSW will have the basic skills to start working for employer on arrival. Better Job Matching. There will be less HSW transfers.

Benefits of the Scheme

4 All Parties

a. Can refer to AEA(S) Mediation Centre to resolve disputes.

b. EA will deliver quality services to the Employers and HSWs.

c. The success of the scheme will ensure long term supply and remove destructive hyper competition.

d. The KBRI EA accreditation and JO notarisation costs have been removed.

I. The procedures have also been simplified. For JO application and EC endorsement, there is now a service level requirement to approve them within 3 working days.

e. The PPTKIS and EA will have their fair earnings for services rendered to the HSW.

5 Bank

a. AEA(S) and EA will work closely with the Financial Institution to ensure HSW receives her salary to repay the bank loan.

HIS Pilot and Administrative Structure

HIS Pilot and Administrative Structure

� A new administrative structure has been appointed by NBPPIOW to implement the HIS:

� EA TRUST Administration Office

� This office will receive application for EA TRUST qualification, Conduct Training and apply disqualifications as required under the scheme.

� HIS Administration Office

� This office will provide the administrative support for the bank loan and salary.

� HIS Mediation Office

� This office will provide the administrative support for the mediations cases

� The EA Trust Office, HIS Administration Office & Mediation Office will be managed Independent of AEA(S) Management Committee to ensure the integrity of the program

HIS Pilot and Administrative Structure

� Authorised Certification Centre – ACC will be jointly implemented withNBPPIOW to provide assessment for the HSWs.

� AEA(S) Mediation Centre – AMC will be the current centre. It will deal withcomplaints from Employer, HSW and EA.

� In addition, any serious incident reported to NBPPIOW will be referred toAMC for investigation.

� Sanctions / Penalties will be impose only by NBPPIOW

� A comprehensive set of standard operating procedures and documentshave been developed to support the scheme. EAs will be trained on theseunder EA TRUST.

CONCLUDING REMARKS

Concluding Remarks & Future

� The HIS is unlike the old scheme.

� The previous bank scheme is about the loan facilitation.

� The HIS is an industry reform driven at the high government level in Indonesia with a national objective for 2017.

� Therefore, NBPPIOW has collaborated with AEA(S) with a strong industry alliance and to set up local structures to enforce the scheme. This shows their level of commitment and determination to make this scheme successful.

Concluding Remarks

� For Singapore, it is an industry transformation to secure our HSW supply amidst competition from regional demand and protect our business for the future.

� We cannot afford to fail as the consequence for the industry and Singapore is really serious beyond imagination.

� Our counterpart in Indonesia – APJATI has entered into an agreement with AEA(S) to support the scheme. Their support is tangible in that they are going to supply 1000 HSWs a month and progressively push this up to 3000 HSWs.

AEA(S), APJATHI & Maybank

� An alliance of 3 parties has been formed for the pilot project.

� The three parties have formal mutual agreements signed between them to comply and promote HIS.

� AEA(S)

� HIS Admin Office is ready

� Training Curriculum and Assessment Competency Standards based on WDA WSQ Framework is being developed

� MayBank Indonesia & Singapore – Simplified and Expedited Process

� Loan Processing will be executed within 3 days of IPA in Indonesia

� Account Opening Facilitated @ 5 Branches in Singapore

� APJATHI - Briefed their members on the 3 May 2016

� 50 PPTKIS are ready and will sign the undertaking with NBPPIOW this week

� Will recruit a minimum of 500 FDWs per month and increase the number progressively

Future

� This is the only path forward into 2017

� that will present Singapore as a favoured destination for IndonesianHSWs and to improve the industry

� Indonesia’s plan to improve overseas worker employment

� Intensive Marketing efforts will be undertaken by NBPPIOW / AEA(S)and APJATHI to educate HSWS and Employers of the new scheme.

Registration

Registration

� Registration and training for EA TRUST is opened from the 5 May to 5 Jun 2016.

� This is a one-month window period for EAs who currently deploy Indonesian HSWs.

� EAs whom intend to deploy HSWs from Indonesia can also join the scheme. A golden opportunity for EAs to get supply and jump start their business.

� Thereafter, registration maybe opened in 6 months and the conditions maybe different and NBPPIOW deems that the number of EAs is sufficient to deliver the monthly new HSW numbers coming to Singapore.

� Entry Fee

� S$650 for Members

� S$950 for Non-Members

� Annual Renewal

� S$300 for Members

� S$600 for Non Members S$600

Training Dates

� Registration:

� AEA(S) Office at:

Address: Blk 9 Jalan Kukoh #03-77, Singapore 160009,

Registration is from 5 May 2016 to 6 June 2016 (Monday-Friday)

10.00am to 4.00pm.

� Training Dates as follows:

� 9 May, 23 May and 9 June 2016

� Time is from 9.00am to 3.00pm at The Seacare Hotel, The Maritime Hall, Level 4

Sample Certificate & Decal

Thank You