The Financial Planning and Financial Literacy of ex-Malaysia Indonesian Migrant Workers

Abstract

Indonesian migrant workers (IMW) face life difficulties after returning back to Indonesia. This is a contrary condition considering their contribution to their home family in Indonesia while working abroad. Literature mentions that their financial planning is the root of the poverty of ex-IMW. Therefore, this research adopts literacy theory to explain this phenomenon. This research conducted a survey among 548 ex-IMW and measures their financial literacy and financial planning. This research also maps their asset ownership to examine the relationship between financial literacy and asset ownership. Overall, this research documents that financial literacy contributes statistically significantly and positively to financial planning. Furthermore, this research shows that asset ownership is closely related to financial literacy. In a nutshell, this research concludes that it is important for migrant workers to have good knowledge of financial issues, because having good financial literacy helps the migrant workers to plan their finance and budget much better, thereby helping them to avoid the poverty trap. Therefore, policymakers such as migrant worker authorities and/or Indonesian embassies abroad have to institute financial education programmes for migrant workers before they return to Indonesia.

Pengaruh Literasi Keuangan, Perencanaan Keuangan Dan Pendapatan Terhadap Kesejahteraan Keuangan Guru Perempuan Di Kota Denpasar

“…Perencanaan keuangan memerlukan penilaian yang komprehensif karena mempertemukan status keuangan saat ini dan masa depan, dan proses ini terus berkembang dikarenakan adanya tujuan hidup (Kumar et al, 2019). Penelitian yang dilakukan oleh Brahmana & Brahmana (2016) mengemukakan perencanaan keuangan yang dilakukan oleh mantan pekerja imigran Indonesia di Malaysia cenderung buruk sehingga mantan pekerja tersebut tidak mempunyai dana dan tidak tercapainya kesejahteraan keuangan yang baik karena tidak adanya perencanaan keuangan dalam mengelola pendapatannya selama menjadi pekerja imigran. Individu yang ingin memetakan cara -cara mencapai kesejahteraan keuangan maka perlu melakukan perencanaan keuangan Berdasarkan penelitian yang dilakukan Yohanna & Maya (2018) menunjukkan bahwa manajemen keuangan yang baik dapat meningkatkan kesejahteraan keluarga.…”

“…Penelitian ini mendukung penelitian-penelitian sebelumnya oleh Brahmana & Brahmana (2016), Yohanna & Maya (2017), Fulda & Lersch (2018) dan Kumar et al (2019) bahwa perencanaan keuangan akan membantu dalam manajemen keuangan untuk mencapai kesejahteraan keuangan dan tujuan keuangan baik itu individu maupun badan. Hasil pada penelitian ini juga menunjukkan bahwa para guru-guru perempuan cenderung merencanakan keuangan untuk menghadapi ketidakpastian masa depan dengan mempersiapkan asuransi, dana pensiun, dan melakukan investasi.…”

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

“…The gender factor has a significance value of 0.213 which means that it does not affect the labors' investment decision. [6] mention that gender has no effect on financial planning and investment. Gender equality that equalizes the rights of men and women in making investments, because managing business investment or other investments can be controlled not only by men but also by women.…”

“…Whereas, the migration is done to change and to improve material conditions and not to cause social problems [5]. This is partly because they are not able to allocate their income ideally [6]. Most of the remittances are still used to pay repayment loan, then it is used for domestic consumptions.…”

The Role of Institutional Collaboration Between Actors in Protecting the Economic Security of Indonesian Migrant Workers With Financial Literacy

“…Economic Social Cross-sectoral programs are less likely to have a large social impact Brahmana and Brahmana (2016) The lack of financial literacy of PMIs is the answer to why PMIs are still experiencing economic difficulties Indonesian ex-migrant workers prefer to get instant loans to meet their needs instead of managing post-employment finances…”