Indonesia is set to lift a decade-old ban on sending citizens to Saudi Arabia as domestic workers and formal sector employees, following assurances of stricter labour protections from the Gulf nation.
A memorandum of understanding to facilitate the legal placement of migrant workers will be signed by ministers from both countries later this month in Jeddah, Indonesia's Migrant Workers Protection Minister Abdul Kadir Karding said.
President Prabowo Subianto has approved the lifting of the moratorium imposed in 2015, the Jakarta Globe quoted Mr Karding as saying on Saturday after a meeting with the president. "He has instructed us to develop a training scheme and placement system for these workers."
The Saudi government is offering as many as 600,000 job openings, including about 400,000 for domestic workers and 200,000 for formal sector jobs, he said.
Indonesia has banned labour migration to several Middle Eastern countries over concerns about mistreatment. However, the moratorium faced criticism for loopholes that have allowed a steady flow of undocumented workers amid high regional demand.
More than 25,000 undocumented domestic workers still enter Saudi Arabia illegally each year, Mr Karding told Bloomberg news agency.
Working abroad is an economic lifeline for Indonesians grappling with poverty and unemployment at home. Indonesia’s migrant worker agency received about 186 complaints from workers in Saudi Arabia over the past year, making it one of the top five destinations with the highest number of grievances, data showed.
Mr Karding said Saudi Arabia labour protections have "significantly improved" under the leadership of Crown Prince Mohammed bin Salman.
The new agreement will also include stronger labour protections, such as a minimum monthly wage of around 1,500 riyals ($399) or 6.5 million rupiah – higher than Jakarta’s minimum wage – as well as health, life, and employment insurance.
The agreement will also enhance workers’ rights, tighten oversight of employers and recruitment agencies, and, if signed quickly, could allow the country to resume sending hundreds of thousands of workers to Saudi Arabia in June. The programme is projected to generate about $1.89 billion annually in remittances.