Hiring Indonesian Helpers Just Got a LOT MORE Expensive

Who should pay the agency fee? The Indonesian government says that the HK employer must bear the cost.

The Indonesian government has recently made a significant decision regarding the hiring of helpers from Indonesia by HK employers. In the past, the burden of hiring costs was primarily placed on the helpers themselves, artificially keeping the cost lower for HK people. Before arriving in Hong Kong, Indonesian helpers typically undergo training for 3-6 months, learning skills such as Cantonese, cleaning, and cooking to be able to perform their work satisfactorily. However, the helpers do not have the financial means to pay for this training. As a result, upon arrival, they are often taken to a loan company by their agents to borrow money. This borrowed amount is then divided, with some paying for the training school while the remaining portion might end up in the pockets of the Hong Kong agency, which also collects fees from the employers.
The Indonesian government has now decided that HK employers must take up the responsibility of funding their workers' training. Consequently, the cost of hiring an Indonesian helper will now amount to approximately $20,000. While the cost has always been this high, it is now solely the employers' responsibility, rather than being shouldered by the helpers.

This move aligns with the zero placement fee policy implemented by the Philippines years ago. Although the fee increase initially surprised customers, it has ultimately proven beneficial for the industry. Helpers arrive and begin their jobs without debt, allowing their families to immediately benefit from their salaries. This factor makes them less likely to resign and enables them to manage any emergencies in the Philippines with greater ease, thanks to the financial cushion. Arrow Employment Services welcomes the overdue decision made by the Indonesian government. When workers are not burdened with excessive debt, they are better able to provide their services, as they are less likely to become discouraged and quit prematurely. Furthermore, they are less likely to return home early due to problems in their home country. Ultimately, workers who are happier and unencumbered by heavy debt are more likely to stay with their employers for the long term.