Indonesia, Malaysia push to renew migrant worker deal by 2026

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Jakarta (ANTARA) – Indonesia and Malaysia have agreed to accelerate negotiations for the renewal of their bilateral Memorandum of Understanding (MoU) on the placement and protection of Indonesian migrant workers, aiming to complete the process by 2026.

The current agreement, signed in 2004, is scheduled to expire in early 2027. The two countries are moving to establish a modernized regulatory framework ahead of the expiration, as the two-decade-old agreement is no longer considered adequate for current labor governance needs.

Indonesian Minister for the Protection of Migrant Workers (KP2MI) Mukhtarudin said technical discussions must be expedited to ensure all substantive issues are addressed promptly.

“We aim to complete this by 2026. Therefore, technical discussions must be accelerated so that all outstanding substantive issues can be resolved promptly,” Mukhtarudin said in a press statement following a bilateral meeting with Malaysian Human Resources Minister Sri Ramanan Ramakrishnan in Jakarta on Tuesday (October 6).

Ramakrishnan stressed that renewing the MoU is an urgent necessity, noting that Malaysia has prepared a “zero draft” as the basis for upcoming discussions.

“The previous MoU was signed in 2004 and has not undergone any additions or revisions for nearly twenty years. Therefore, it is imperative that we sign a new MoU,” he said.

A key focus of the new agreement is the establishment of an integrated, centralized digital system to manage recruitment, improve operational transparency, and eliminate illegal middleman activities.

Malaysia has proposed integrating its Foreign Worker Centralized Management System (FWCMS), while Indonesia is developing a dedicated “super app” to streamline placement and protection services for its overseas workforce.

During the meeting, officials also reached an understanding on raising the maximum age limit for prospective Indonesian migrant workers from 40 to 45 years.

“Regarding age, we welcome the extension of the limit to 45 years. This means our workers over the age of 40 still have the opportunity to work in Malaysia,” Mukhtarudin noted.

The proposed agreement will also cover social protection under Malaysia’s Social Security Organisation (SOCSO), defined leave entitlements, placement schemes including government-to-government (G2G) and private-to-government mechanisms, as well as standardized placement costs to prevent financial exploitation.

To meet the 2026 timeline, the two governments have rescheduled the Joint Working Group (JWG) technical discussions to October 14–18, bringing the talks forward from their originally planned schedule of October 22–23.

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Translator: Yoanita Hastryka Djohan, Yashinta Difa
Editor: M Razi Rahman
Copyright © ANTARA 2026

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