MALAYSIA is expected to see a further decline in the number of Indonesian workers, particularly in the construction sector, as more Indonesians opt to seek employment in countries offering better wages and conditions, such as Japan, Taiwan, Singapore and Hong Kong.
Indonesia’s Ambassador to Malaysia, Datuk Hermono, said the trend is already evident, with the number of Indonesian workers in Malaysia falling to 543,000 this year, compared with 591,000 in 2024.
“This suggests that Malaysia is no longer seen as an attractive destination for Indonesian workers. They are now more likely to find better-paying opportunities elsewhere,” Hermono said in an interview with Berita Harian.
According to data from January to early September this year, demand remains high in Malaysia for domestic helpers and formal sector workers, but the number of contracts actually signed has decreased sharply.
“In the domestic sector, we’ve recorded 22,651 requests over nine months, but only 6,506 contracts were finalised. In formal sectors, including plantations, there were 11,394 requests but just 9,106 agreements,” he said.
He added that many Indonesian workers now choose to return home after completing their initial two-year contracts rather than extend their stay or apply for renewal in Malaysia.
“To me, the trend is clear — the number of documented Indonesian workers will continue to decline. Fewer are coming in, and those who are here are less likely to stay,” he said.
Currently, Malaysia employs around 62,000 Indonesian domestic workers, 177,000 in plantations and 114,000 in construction. However, Hermono noted that Indonesia’s lifting of its moratorium on sending domestic workers to Saudi Arabia and the United Arab Emirates could accelerate the outflow.
“We’re in active negotiations with Saudi Arabia and the UAE. Many are now taking advantage of opportunities there,” he said.
On undocumented workers, Hermono said their numbers have also dropped significantly, which he attributed to tighter immigration enforcement and frequent operations by Malaysian authorities.
“During immigration raids, most of those detained tend to be from Bangladesh or Myanmar. Indonesians make up a much smaller share now,” he noted.
“A decade ago, Indonesian workers dominated construction sites. Today, they are few and far between — Bangladeshi workers are now far more common. One reason is the uncompetitive wages offered here,” he said.
Addressing the possibility of Indonesian nurses working in Malaysia, Hermono said discussions are ongoing and the move could be mutually beneficial, especially given the large number of Indonesian medical tourists in Malaysia.
“It's still being discussed as Malaysia has yet to make a decision. But we hope this will open a new employment avenue. A large number of Indonesians seek treatment in Malaysia, particularly in Penang and Melaka,” he said.
“The healthcare services are good, and the costs are not significantly higher than in Indonesia. So it would make sense to have Indonesian nurses here, especially to assist patients from our country.”
He added that Indonesian nurses are already working in Singapore, mainly in elderly care, and the same model could be adapted in Malaysia to support the growing medical tourism sector while ensuring nurses meet local standards. - Sept 7, 2025
