A Series of Training of Trainers - Budget Smart: Financial Education for Migration-Affected Youth

The series of training of trainers aim to educate prospective migrant workers on how to plan the migration, determine their migration goals, access financial services, as well as invest the earned remittances productively.

A. Background and Justification

Indonesia is the second largest migrant exporting county in the Southeast Asia just after the Philippines. It is estimated that about 6 million Indonesian migrant workers employed in the neighborhood countries such as Malaysia, Singapore, and Brunei as well as the Middle East such as Saudi Arabia, UEA, Kuwait, Jordan, Qatar, Egypt and Jordan. Besides the above mentioned countries, labour migration from Indonesia to Hong Kong and Taiwan also figure a huge number.

Indonesian migrant workers are dominated by females and they work at domestic sectors. Working at private rooms with lack of regulation by the state of destination and insufficient protection by their employers have placed migrant domestic workers to continually encountering trafficking and contemporary forms of slavery such as debt-bondage, violence in work place, abuse, mistreatment, sexual harassment, etc.

On other hand, lack of source of income and local employment has led migrant workers and their family members to go overseas for economic migration. With great expectation towards the improvement of life quality and economic situation, unskilled migrant workers relay on the ‘compassion’ of his/her employer since most of them are categorized as informal workers and excluded from legal protection system. Ironically, the majority of former migrant workers cannot move forward from their life difficulties: they are still economically poor without any better plan to manage the earned overseas income.

Furthermore, it seems that youth is also among the affected population due to migration. First, youth aged below 29 years present a significant percentage in the Indonesia’s overseas migration (more than 25%). Secondly, the left family members of migrant workers mostly figured by youth population. In terms of remittances utilization and financial planning, they are characterized by financially illiterate. As a matter of fact, in many cases a migrant worker is being forced to work overseas repeatedly after his or her first employment due to failure to secure the remittances as a productive-sustainable investment for their livelihoods in the migration aftermath.

Such a situation portrays the poor awareness of migrant communities on how to plan the migration, determine their migration goals, to access financial services, as well as invest the earned remittances productively. Responding such circumstances, ILO Jakarta-Combating Forced Labour and Trafficking of Indonesian Migrant Workers (CFLTIMW) Project and ILO Japan Migrant Project in collaboration with the ILO Regional Office for Asia-Pacific (ROAP) has developed a financial education programme for migrant workers and their families.

The programme is packaged into a tailor-made training modules aimed to sensitize the basic issues concerning with financial services, migration planning as well as reintegration. Among the provided modules are:

  • Setting Migration Goals and Family Decision Making
  • Deciding To Migrate
  • Managing Your Money Smartly
  • Financial Products and Services
  • Risk Management and Insurance
  • Coming Home and Reintegration

The modules are designed in a way which ensures the active participation of the participants during the classes. Specifically for the training of trainers (TOT), they also introduce the participatory and adult learning principles approach to the trainer.

B. Activities Proposed

In collaboration with EAST Project, the ILO Jakarta Combating Forced Labour and Trafficking of Indonesian Migrant Workers (CFLTIMW) Project, will undertake a series of financial education training both for national and local trainers as well as for the affected-migration communities in the EAST and CFLTIMW Projects areas.

ILO The program will directly collaborate with migrant-based organizations (NGOs and migrant unions) as well as government in order to sustainably provide direct assistance to migrant workers and their families on financial services and accesses as well as income planning and management.

Furthermore, at organizational level, the prospective trainers will be encouraged to master the skills of financial education facilitation which in turn will possibly function as financial education/training providers for migrant workers and their families. As the result, the beneficiaries of the program will be twofold: migrant workers and families as the direct beneficiaries, and the collaborating organizations as the institutional support beneficiaries.

C. Strategy

The proposed activities will ensure the sustainability of the project in the future. It seeks to establish the national experts in the selected Provinces in order to ensure the geographical coverage of the financial education service provision. The collaborating counterparts to be selected should encompass their current roles and function in their respective area in delivering services to youth and migrant workers, particularly in the area of economic empowerment and community development.

After the TOT training, ILO will provide limited fund to deliver one Financial Literacy training at community level to respective province. Such step-down training will be under supervision and technical assistance by the ILO Officer who expert on the training subject in order to optimize the technical facilitation practice. After the ILO-funded training, respective trainers will be encouraged by the ILO to identify independent training and promote it to other stakeholders (government, donor, other NGOs).

The impact of the use of the manual will be closely evaluated. Indicators will include elements related to knowledge of financial services, attitude towards financial services, and financial practices. Baseline data will be decided during the ToT, and collected as part of the trainings in the 6 provinces. Trainers and/or ILO field teams will later take a representative sample of the household trained a month after trainings, and ask the same questions. The ex-post evaluation figures will then be compared with baseline data to measure the change in knowledge attitude and practice. The evaluation will later be used for promoting the use of the manual.