Investment Intensity of International Return-Migrant: A Case Study of East Java - Indonesia International Migration

Abstract

Working abroad is an alternative strategy to change the quality of life by the poor family. Working as migrant workers is an alternative for some people to change their lives. After a long time of migration, many migrant workers return to their regions and they do not have a sustainable income again. The presence of migrant workers or returning Indonesian migrant workers (TKI) has actually led to problems which have become quite serious problems in the labor sector. These problems mostly led to a culture of hedonism and consumerism so Ex-Indonesian migrant workers do not have sustainable income. There is a tendency where migrant workers do not have the commitment to create sustainable business units that can create income after becoming migrant workers and even lead to unemployment. Whereas, investments must be made after returning from abroad. It has been occurring in Tulungagung Regency which is one of the main areas of the Indonesian Migrant Workers. As it has been stated in some theories that factors influencing investment decisions are the amount of income, individual and family characteristics, psychological factors, and external factors such as knowledge or skills. Therefore, this study aims to find out the reasons of ex-migrant workers' investment decision by involving several factors that were quantitative method and tested by using binary logistic regression models. The sample of this research are 42 Ex-Indonesian migrant workers. The results show that the factors that have significant influences are income, other wealth, marital status, number of family liabilities, education, length of work, and government training. Then, this research also proves that the investment determinants of ex-migrant workers in Tulungagung Regency are not only themselves but also their families.