Indonesian Migrant Workers (IMWs) are an important component of the country's economy. They number in the millions and are spread across more than 30 countries.
In addition to developing their personal qualities and reducing domestic unemployment, IMW's biggest contribution to the economy is remittances, which total billions of US dollars or tens of trillions of rupiah each year.
IMW remittances are used for various family needs in the country such as basic necessities, housing, health, education, business, and investment.
IMWs Growth Statistic 2021–2023
New placements of these Foreign Exchange Heroes have increased in the last two years, by 176% in 2022 and 37% in 2023.
A total of 274,965 workers were recorded in IMW placements in 2023. Here are the 5 countries and occupations with the highest number of placements.
Countries | 2023 IMW Placements |
Taiwan | 83,216 Workers |
Malaysia | 72,260 Workers |
Hong Kong | 65,916 Workers |
South Korea | 12,580 Workers |
Japan | 9,673 Workers |
Occupations | 2023 IMW Placements |
House Maid | 66,362 Workers |
Caregiver | 54,665 Workers |
Plantation Worker | 25,163 Workers |
Worker | 22,361 Workers |
Operator Production | 16,094 Workers |
Source: BP2MI
IMW Remittances Growth Statistics 2021–2023
Not only in terms of the number of workers, the nominal remittances from IMWs also increased significantly during 2021–2023.
Investment among Migrant Workers
The total remittances of IMWs reach US$ 14.22 billion (around Rp 231.3 trillion) by 2023. They face great challenges in managing their finances as they have to manage their income carefully to achieve financial stability for themselves and their long-distance families.
Stocks are becoming an increasingly popular investment product among migrant workers. In the long run, stocks can help the Foreign Exchange Heroes optimize their savings.
This is why stocks are one of the right investment options for Indonesian Migrant Workers.
1. High Potential Return
A stock investor can earn returns in the form of capital gains and dividends. In 2023, the IDX Composite (IHSG) growth reached 6.16% (YTD change). Some issuers also pay jumbo dividends that the yield ranges from 20–40% per share (including for interim and final dividend types).
However, keep in mind that stocks also come with capital loss and liquidation risks.
2. Contribution to the Domestic Economy
When migrant workers invest in the stock market, they directly contribute to strengthening liquidity and trading volume on the Indonesia Stock Exchange. Buying shares is also proof of an investor's ownership in the company.
3. Buy Stocks from Anywhere
Stock transactions are made easier with the KAF ETRADE online trading system from KAF Sekuritas. Investors can access KAF ETRADE through the kaf.bofis.id website or the Neo BOFIS application on the Play Store and App Store.
4. Easy and Fast Opening Account Online
Investors fill in the securities account opening form, upload personal documents, and wait for verification online. By simply accessing one page opening-kaf.bofis.id, investors can start the process at any time.
5. Promo 0.07% Stock Transaction Fee at KAF Sekuritas
This is a great opportunity for investors to reduce their investment costs and maximize their returns.
New investors who open an account at KAF Sekuritas until July 31, 2024 will receive 0.07% transaction fee promo valid until December 31, 2024.
Check out the full terms and conditions!
Disclaimer: The content is made for educational purposes, not a recommendation to buy or sell a particular stock. PT KAF Sekuritas Indonesia is licensed and supervised by the Financial Services Authority (OJK).
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