Indonesia, Malaysia Push New MoU to Protect Migrant Workers with Digital Systems

RRI.CO.ID, Jakarta - Indonesia and Malaysia are expediting the renewal of their memorandum of understanding (MoU) on the placement and protection of Indonesian migrant workers, acknowledging that the 2004 agreement no longer meets today’s labor governance standards.

The MoU is due to expire in early 2027, and both governments aim to finalize a new framework within 2026. The revision seeks to modernize recruitment and oversight through digital platforms.

Malaysia has proposed its Foreign Worker Centralized Management System (FWCMS), while Indonesia is developing a “super apps” to integrate placement and protection services.

“This MoU was signed in 2004 and has gone nearly 20 years without significant updates. It is our obligation to sign a new MoU,” said Malaysia’s Human Resources Minister Dato’ Sri Ramanan Ramakrishnan during a meeting with Indonesian Migrant Worker Protection (P2MI) Minister Mukhtarudin in Jakarta on Tuesday, October 6, 2026, as quoted on P2MI Ministry's official website.

Malaysia has prepared a “zero draft” outlining proposals on social protection, age limits, leave entitlements, and recruitment mechanisms. One key change is mandatory coverage under the Social Security Organization (SOCSO), offering 24‑hour protection including workplace safety and commuting risks.

Another proposal raises the maximum age for Indonesian migrant workers from 40 to 45. “We welcome the increase in age limit to 45. It means our workers above 40 still have opportunities to work in Malaysia,” Minister Mukhtarudin said.

Leave entitlements are also under review. Current provisions grant 10 public holidays and 8–12 annual leave days depending on tenure. Both sides are discussing possible extensions and adjustments based on cultural or religious backgrounds. “For leave, we are discussing together to find a middle ground acceptable to both countries,” the minister added.

Digitalization remains central. Malaysia’s FWCMS is designed to reduce irregularities and limit unauthorized intermediaries, while Indonesia’s super apps aim to provide workers with official information, transparent placement processes, and stronger oversight.

Malaysia has offered technical briefings to Indonesian ministries to ensure readiness before implementation. Placement mechanisms are being considered under government‑to‑government (G2G) schemes or regulated private agencies, with both countries reviewing cost structures to ensure transparency and prevent excessive burdens on workers.

The meeting was attended by Malaysian Ambassador to Indonesia Dato’ Muzafar Shah bin Mustafa, senior officials from Malaysia’s Human Resources Ministry, and SOCSO’s chief executive.

The renewed MoU is expected to strengthen protection for Indonesian workers in Malaysia, covering social security, fair labor rights, transparent recruitment, and digital oversight from the earliest stages of placement. ***