Monitoring the Socioeconomic Impact of the 2008/2009 Global Financial Crisis in Indonesia - The Impact on the Livelihoods of Families Dependent on Migrant Workers in Kabupaten Malang

Rachma Indah Nurbani, Nina Toyamah
Labor & Migration, Social Protection
Jawa Timur
Fact Sheet, November, 2009, Final


The community group in Desa Arjowilangun most affected by the impact of the 2008/09 global financial crisis (GFC) is the families of male migrant workers (TKI) employed in the export-oriented manufacturing industry in South Korea. Although none of these workers has returned home because of the crisis, the money that they send has gone down by 25%–50% due to the reduction in their official working hours, and the reduction or even removal of overtime. Even so, this situation has had no impact on fulfillment of the basic needs of their families because the amount of money that the families receive is still sufficient for them to meet daily needs and because the TKI families generally have other sources of income from agriculture, livestock raising, or other businesses. During the past year, the socioeconomic situation of the Arjowilangun community has been relatively stable and economic activities have continued to expand. The drop in turnover in such trading activities as the sale of mobile phones and pre-paid voucher, and the currency exchange business has been caused more by increased competition in the sale of phone and the presence of services fast money transfer from abroad.

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