04-2957730 / 04-2957731 / 016 448 8225 (Adam)

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Jun 23 2016

1. What are the major benefits of the Indonesia G2P (Government to Private) Program to Principal Employers?

Most Principal Employers preferred Indonesia than Vietnamese or Myanmar workers because of better communication skills (verbal and written). The Indonesia workers are able to be trained as multi-skilled workers (SMT, QC, Technical etc) as they can read and understand the Factory standard operating procedure (SOP) and New Product Implementation (NPI) in Malay language better than any other foreign workers. Moreover, their working duration in Malaysia will be much longer than Vietnamese or Myanmar workers. Majority of them have worked for more than 3 years and most of them have extended to the maximum period.

The following are benefits to the employer as compared to the current recruitment system:

  1. Savings, Stable Workforce and Increase Productivity.
    Under the current recruitment system, every principal employer has to pay a loan of RM2000 to RM2400 per worker to the Indonesian licensed agents and thereafter deduct RM200 to RM240 from each worker monthly income between 10 to 12 months period. Thus, the workers will suffer and receive less income. The situation will be aggravated when there is no overtime during certain period of the year. To add to the wound, the passport will be under the worker custody (With effect from June 2011, the Indonesian housemaids will be allowed to hold their passports. It is a matter of time all foreign workers will have to hold their own passport due to global human rights pressure and anti human trafficking act). It will then encourage and provide more opportunities for the foreign workers to runaway or find illegal job. The estimated losses per worker are as follows:-
    1. The levy (RM1200) +
    2. Statutory fees (RM511) +
    3. Recruitment Loan (RM2000-2400) +
    4. Average cost per hostel and transportation.
    5. Training and replacement cost
    The principal employers (under direct hiring) will suffer such losses under the present loan recruitment system . Besides, the negative impact of expected high absenteeism will eventually affects the principal employers' production quality and productivity.

    However, under this new G2P system, it will be different as the parents or families of the workers are the principal guarantor to this national program. The Indonesia Government together with its Consulate in Penang/Malaysia will ensure the workers are fully understood and committed to this program.
  2. Safe from Anti-Trafficking in Person Act 2007
    Under the current recruitment system, most principal employers rely on its Malaysia and overseas agents for the selection and recruitment process in overseas. If any of the foreign workers recruited were forced, coerced or cheated by the middlemen (third parties) into paying hefty placement fees and were promised jobs, of which basic salary, allowances, benefits, position, working environment and conditions differ from what have been offered by the Principal Employer in Malaysia, the principal employers will be liable to this offence even though it is beyond their control and knowledge. The principal employer is jointly liable with the outsourcing and overseas agents in Anti-Trafficking in Persons Act. They will be charged as accomplice to forced debt bonded labor and human trafficking especially when the passport is NOT under the foreign worker custody. However, under this G2P program, the Indonesia government represent one of the partners in the recruitment process and shall scrutinize and brief every details in the employment contract to the workers before the migrant workers arrive in Malaysia, thereby the employer will be safe from such Act.
  3. Ability to attract Talented and Educated Workers
    With this G2P program, more talented and educated graduates will be interested to work in Malaysia as they are recruited by the Government authorities and not by middlemen(third parties). Already, there are many successful stories from migrant workers returning under the Government existing G2G Recruitment Programs from Japan and South Korea. By undergoing this G2P Program in Malaysia instead of the G2G Programs, the workers are able to save at least six months for learning Japanese and Korean languages. Moreover, the culture, religion, language and food are similar between Malaysia and Indonesia.
  4. Systematic Process.
    The Indonesia Government will follow the same systematic process that supported the existing G2G Recruitment Programs to Japan and South Korea. Passport of workers shall be prepared before the interview. Medical and insurance documentation shall be completed within a short period of time. The departure of workers shall be conducted by the BNP2TKI in Jakarta as per schedule planned.
  5. No Deduction (EICC).
    No deduction of salary workers for loan purposes which comply to EICC conditions.
  6. Disciplinary Cases monitored by Indonesian Consulate and IRC.
    Disciplinary cases of workers shall be monitored closely by Indonesia Missions and IRC. This is only possible if the principal employer provides regular performance appraisal to Indonesia Mission and IRC to keep track of workers conduct and progress.
  7. National Pride to Excel Working Performance.
    The workers shall be briefed and counsel by the Indonesia Mission to behave and committed in their employment, before and after they arrived in Malaysia. They will be briefed in Jakarta and escorted by the BNP2TKI officers from Jakarta to Penang and thereafter received by the Indonesia Consulate and IRC officers at the Penang International Airport. An orientation will be conducted at the Penang Indonesian Consulate immediately after they have arrived.
    The Indonesian workers will take an oath at the Consulate to perform to their best ability and for the interest of the Principal Employer. It will be of national pride and interest for the workers to perform in Malaysia under this national program as they are representing the Indonesia government's effort to improve the US Anti-Human Trafficking status from Tier 3 to Tier 2. The workers will be indirectly embarrassing the government if they do not perform well and absconded before the completion of the contract.
  8. Working Performance and Conduct guaranteed by Workers' Family.
    Workers are recruited directly by the Government national board (BP3TKI) in every district who has direct contact with their family members. Their family profiles are kept by the government authorities and application to work abroad are scrutinized by the authorities and guaranteed by their parents, spouses or guardians. This will ensure the worker to be responsible for their actions as their family reputation is involved.
  9. Performance Recognition and Achievement Awards.
    At the end of the contract, workers with good performance and attendance record will be awarded the Certificate of Achievement by the Indonesia Mission witnessed by IRC and Principal Employers. This certificate shall enable the workers to continue his/her future career undertakings.
  10. Best Employer Award.
    Similarly, the Principal Employer who had participated in this G2P program and provided the best working environment, benefits, culture and most importantly allow the opportunity for the migrant workers to participate in this free debt-bondage program shall be awarded the Best Employer Award by the Indonesia Government. This award will establish a benchmark for employers to be evaluated by the external global auditors and customers.

2. Please tell me the history and background of this unique 1st Indonesia-Inter G2P program in Malaysia with IRC Global Search (M) Sdn Bhd

IRC Global Search (M) Sdn Bhd (IRCGS), an accredited Malaysia outsourcing company since 2005 with its Head Office based in Penang, was officially appointed by The Indonesia National Board of Placement and Protection of Indonesia Migrant Workers (Badan Nasional Penempatan dan Perlindungan Tenaga Kerja Indonesia or BNP2TKI) in Jakarta to be its first partner in the Government to Private (G2P) Recruitment and Outsourcing Program in Malaysia. Prior to this, the Indonesia Government has been collaborating with the Japanese and Korean counterparts in recruiting thousand of talented workers and operators under Government to Government (G2G) Programs every year.

This inaugural G2P Program MOU (which is the extension of the G2G Program) was signed in Jakarta between BNP2TKI and IRCGS on 22 December 2010 and witnessed by the Head of BNP2TKI Bapak Moh Jumhur Hidayat, who reports directly to the President Republic of Indonesia. BNP2TKI is a special government ministry who is responsible for the promotion, protection and placement of its country's talented human resource in overseas. The local Indonesia Missions (Embassy and Consulates) will be responsible for coordinating and monitoring the G2P program. IRCGS, as their partner, will be responsible for managing its workers' welfare in Malaysia.

IRC is officially assigned to source and recruit skilled and unskilled workers from 6 regional areas namely:

  • Yogyakarta (Education City of Indonesia),
  • Jakarta,
  • Bandung,
  • Semarang,
  • Palembang, and
  • Surabaya.

Under these six (6) locations of recruitment, the government officers in BNP2TKI and its branches BP3TKI will conduct monthly meeting with the heads of the universities, technical colleges and high schools to develop a pool of skilled workers tailored to the national G2G and G2P recruitment programs. These target graduates ranging from university degrees to high school certificate level are from the electronics, electrical, mechanical, mechatronic, automotive, information technology (IT). computer science and quality management faculties.

3. What are the services offered by Inter Group?

  • Indonesia-Inter G2P Recruitment and Outsourcing program (for Indonesia workers)
  • Normal Recruitment and Outsourcing services (for others source countries)
  • Direct Recruitment only (under factory approval)
  • Executive Talent and Manpower Search services
  • HR Public Training and Consultancy (for Asean Managers and Executives)

4. What are the types of workers available under the G2P Program and what are their salary expectations for fresh graduates of certificate, diploma and degree level?

Under this G2P program, we are able to source both direct labour (DL) and indirect labour (IDL) from the alumni from over 500 high schools, technical colleges and universities within the 6 areas of recruitment locations - Palembang, Jakarta, Bandung, Semarang, Yogyakarta and Surabaya.

With no placement fees, many candidates are attracted to work and experience the working environment, culture and lifestyles in Malaysia. Some may want to extend working here and apply for the resident pass which can be extended up to 10 years. Others may married to locals and continue to work here.

Incidentally, there is a large pool of skilled workers available in Yogyakarta (popularly known as the education and cultural city of Indonesia). Among the top universities and technical colleges available here are University of Gajah Mada, Sanata Dharma, AtmaJaya, Teknoloji Yogyakarta, Muhamadiyah, SMK Depok 2 and many others.

Throughout the past 8 years, IRCGS has been recruiting male and female factory workers with position from assistant engineers to operators from various education institutions in Indonesia, This group of workers can be trained to be

  • Test engineers
  • NPI and R&D engineers
  • Process engineers,
  • SMT engineers
  • Maintenance engineers,
  • Computer engineers
  • Production supervisors
  • technicians/super-operators and
  • Factory operators.


Due to our workers' excellent performance and positive attitude, our client had successfully converted them from outsourced workers to their permanent headcount after completion of two years contract with IRCGS.

Prior to G2P, the Indonesia Government has cooperated successfully with the Japanese and Korean multinationals on the G2G (Government to Government) Programs and have recruited many skilled industry workers for electrical, electronic and automotive industries in these developed nations.

The average incomes requested by the Indonesia workers for Malaysia employment market are:

Qualification Position Income *
Certificate level Super-operators/ Asst. Technicians RM 900 to RM1000 (basic and allowances)
Diploma level Technicians RM1200 to RM1500 (basic and allowances)
Degree level Asst. Engineers RM2000 to RM2300 (basic and allowances)

* The amount of income does not include overtime and our monthly management fee. It is also subjected to changes due to market demands in local and foreign manpower industries.

5. I am quite ignorant about today labor debt bondage, human trafficking and the Anti-Trafficking in Persons Act 2007 and amended recently in 2010. Please explain to me the negative implications, conditions and consequences of the Act to my company.

Today, labor debt bondage has become a very serious human trafficking offences in foreign labor industry. Debt bondage occurs when unlicensed labor recruiters unlawfully exploit an initial debt the workers assumed as part of the terms of the employment. The workers will be forced, coerced and cheated into accepting the contract as their passports and personal documents will be kept by the employers or agents as collateral. There were many reported cases where foreign workers have been cheated as money paid to the overseas middlemen(third parties) was not accountable and when the foreign workers arrived in Malaysia, their salary will be deducted again. Surprisingly, when such cases were reported to the authorities, they were unable to recover the workers losses from the middlemen(third parties). The current recruitment system in overseas is too dependent and control by the middlemen(third parties).

In other countries such as India and Bangladesh, debt bondage is still widely practice and the workers have to borrow loans from money lenders with high interest rate to work in Malaysia. Under the new amended ATIP 2007, the Principal Employer will be prosecuted as accomplice to the Human Trafficking Act if they collaborated directly or indirectly with the Malaysian or overseas agents or middlemen(third parties) who are involved in human trafficking irrespective whether the workers are outsourced or permanent hired. The principal employer may be oblivious to such Act but they cannot plead ignorant in facing the law.

In 2007, Malaysia was downgraded from the US Anti Human Trafficking Tier 2 Watch List to Tier 3 (partly due to labor debt bondage). In 2010, it was upgraded to Tier 2 Watch List and if the government is not serious in enforcing the Act, Malaysia maybe downgraded again to Tier 3. The Malaysia government is currently engaging its full force and resources to combat and prevent human trafficking activities such as labor debt bondage. They have conducted many surprise visits and checks (naziran) on outsourcing companies and principal employers who employ foreign workers.

The G2P and G2G Programs were discussed at the Asean Summit and Conferences to prevent and combat human trafficking among Asean countries. The Indonesian government, who is also the Chair of Asean has initiated such programs and directly involved in protecting their migrant workers. Labor debt bondage is now a crime that has become more rampant in this 21st century. It is a form of modern slavery where the poor workers have to force to work to repay their debts.

In this respect, and coupled with the shortage of skilled workers and also to comply with EICC requirements, IRC is willing to assist interested Malaysian Company who wishes to participate in the G2P Program. IRC will invite our client to approach the Indonesian Consulate and Its Missions (BNP2TKI) for recommendation to the Malaysian government for special approval. However, the principal employers must substantiate the application with sufficient documentary evidence to support the approval.

In conclusion, the Principal Employer should take this opportunity to work with the Indonesia government together with Malaysia government, to prevent and combat against labor debt bondage and human trafficking, and eventually help Malaysia to achieve the US Tier 1 status ranking on human trafficking.

By doing so, the Principal Employer is also able to fulfill its EICC or ILO requirements and at the same time avoid the risk of dealing with any overseas recruiting middlemen(third parties) or parties who may in anyway involved in human trafficking activities beyond your control and knowledge.

6. How can IRC plays its roles as responsible outsourcing and Recruitment Company in Malaysia to ensure that the foreign workers I recruited are not labor debt bondage and exploited by overseas agents under human trafficking act?

In this respect, and coupled with the shortage of skilled workers and also to comply with EICC requirements, IRC is willing to assist interested Malaysian Companies who wish to participate in the G2P Program. which is not under labor debt bondage and exploited by middlemen(third parties). IRC will invite our client to approach the Indonesian Consulate and Its Missions (BNP2TKI) for recommendation to the Malaysian government for special approval. However, the principal employers must substantiate the application with sufficient documentary evidence to support the approval.

We advise Malaysian companies to work with the Indonesia government together with Malaysia government, to prevent and combat against labor debt bondage and human trafficking, and eventually help Malaysia and Indonesia to achieve the US Tier 1 status ranking on human trafficking.

By doing so, the Principal Employer is also able to fulfill its EICC or ILO requirements and at the same time avoid the risk of dealing with any overseas recruiting middlemen(third parties) or parties who may in anyway involved in human trafficking activities beyond your control and knowledge.

7. What are the roles and responsibilities of this G2P program to the 3 partners: Indonesia Mission; Principal Employer and IRC?

Unlike the existing outsourcing system, this G2P Program works in a tripartite agreement between three (3) partners:

Each partner has their individual roles, responsibility and commitment to determine the success of this G2P program under the following conditions:

  1. The Indonesia Mission, being the Authority Body will ensure smooth recruitment process and provide ready pool of quality skilled and unskilled workers in Indonesia. They will conduct their own publicity and promotion strategies with the education institutions, universities, government bodies and its alumni body for interviews and documentations. However as a government body, BNP2TKI will not pay for any expenses and will provide only services and facilitate the process. They will help the workers to apply for passport, medical, insurance and even government soft loans if needed. At the end of the contract, they will award certificates of achievement to the workers and also certificates of recognition to the Principal Employer for participating in this program.
  2. The Principal Employer, being the Ultimate User of the worker will commit in ensuring the minimum working hours per month, provide safe and efficient equipment, conducive working environment and pay for the annual levy, workers remuneration benefits package (incld public holidays, sick leaves and annual leaves) and management fee to IRC.
  3. The Approved Service Provider - IRC being the Licensed Outsourcing Company shall provide safety and conducive hostel facilities and management (approved under EICC), medical care (optional), statutory fees, monthly payroll services, workers welfare and counseling, renewal of working permit and passport, pre and post recruitment expenses in Indonesia and Malaysia, repatriation cost and other workers welfare services cost.

This G2P program is also in compliance to the Malaysian Labor Law and International Labor Law where outsourced workers shall also receive the similar salary package, incentive, bonus and benefits provided to the same category of workers working in the same factory. Under EICC and the labor law, discrimination of remuneration package among the same category of workers working in the same factory should be discouraged irrespective whether they are permanent or outsourced workers.

8. How can my factory benefited in terms of savings from these G2P program as Principal Employer?

IRCGS will provide a very competitive and transparent management fee to our clients. It is divided into four (4) mandatory and (3) optional services provided for a two (2) years contract subject to renewal. IRCGS charge a fixed amount of management fee per worker per month based on the services provided.

Please note that IRCGS will not charge for any overtime services performed by the workers and also the recruitment fee of RM2000 to RM2400 per worker to our clients. Under EICC, our client cannot deduct the fee from the workers' salary, therefore it is a very high upfront cost for them.

From our G2P Program, our client will be able to save a huge sum of money from these 2 savings. If you are interested to know further, please contact our office 04-6462020 for Ms Ng or email to This email address is being protected from spambots. You need JavaScript enabled to view it.

9. If my factory has exceeded the approved ratio, and we are in urgently needed of foreign workers due to our increasing export demand, what shall we do?

As licensed outsourcing and recruitment agency in Malaysia, IRC can help you to prepare an appeal letter and constructive proposal to the Director of Foreign Workers section, Ministry of Human Resource at Putrajaya to appeal for the increase of the required ratio based on your valid reasons and supporting documents. These proposals shall be prepared and discussed together with Ministry of Home Affairs directors and related officers after you have officially signed an appointment agreement with IRC.