BNI Visits KemenP2MI To Discuss KUR Distribution For Indonesian Migrant Workers

KemenP2MI together with Bank Negara Indonesia (BNI) discussed the distribution of people's business loans (KUR) for Indonesian migrant workers. (ANTARA/HO-KP2MI)

JAKARTA - The Ministry of Protection of Indonesian Migrant Workers (KemenP2MI) together with Bank Negara Indonesia (BNI) discussed the distribution of people's business loans (KUR) for Indonesian migrant workers.

P2MI Minister Abdul Kadir Karding assessed that the benefits of KUR are important for migrant workers because most of them rely heavily on KUR to take care of the departure process for work abroad.

"Many of these migrant workers are constrained by the budget in the initial departure process, because they do not have the money to take care of their documents," said Minister Karding when discussing the KUR program for Indonesian migrant workers with BNI at the Indonesian Migrant Workers Protection Ministry (KemenP2MI) office, Jakarta, Wednesday, March 19, which was confiscated by Antara.

"Meanwhile, the KUR is disbursed in the middle, after receiving a working quota, so that many are not covered and burdensome for migrant workers. There must be a solution for this," he continued.

Minister Karding also mentioned that the potential for giving KUR could be greater in the empowerment stage of migrant workers. Moreover, empowerment which is part of the economic protection is mandated in the Law on Indonesian Migrant Workers.

"Such as business assistance, access to capital for Retired migrant workers, rather than getting loans from irresponsible institutions and imposing high interest," he said.

Minister Karding also reminded the importance of financial literacy for Indonesian migrant workers who can be included in the collaboration between KP2MI and BNI.

According to him, financial literacy for migrant workers is important so that those, who are Indonesia's second-largest foreign exchange contributors, are able to manage their finances.

"If the financial literacy of migrant workers is good, then migrant workers can save and invest. For example, they can have a home, health insurance or education for migrant workers," he said.

Meanwhile, it was also stated that from the start of the launch in 2015 to 2023, BNI had distributed more than Rp905 billion of people's business loans to Indonesian migrant workers. The BNI people's business credit has also reached 48,920 debtors since 2015-2023.

The amount of KUR given to migrant workers ranges from Rp. 25 million to Rp. 100 million for one Indonesian migrant worker.