Indonesia Plans to Send 100,000 Workers to Japan

JAPAN -  JAKARTA. Indonesia plans to send 100,000 workers to Japan over the next five years, helping Tokyo reduce its labor shortage as the population ages in the world's third-largest economy.

The Indonesian Ministry of Labor and the Japan International Cooperation Agency (JICA) held their first joint human resources forum in Jakarta on November 28, 2023, attended by more than 200 people including Indonesian government officials and representatives from Japanese industries ranging from automotive to tourism and nursing.

“Indonesia is entering a demographic bonus period,” said Minister of Labor Ida Fauziyah at the event as quoted from Nikkei Asia, Saturday (16/12).

“Our challenge is how to provide job opportunities for many people, especially those of working age between 15 and 64 years old, and prevent increasing unemployment,” added Ida.

She added, Japan is a highly sought-after destination for Indonesians, especially the younger generation.

Another Ministry of Labor official said in the forum that Indonesia aims to send 100,000 skilled workers to Japan in the next five years.

As part of this effort, the Ministry of Labor hopes 70,000 workers will travel using Japan's Special Skilled Worker visa program, which allows a stay of up to five years. They estimate another 30,000 people will work under different programs.

Both countries also agreed to build a platform to exchange labor-related information between the public and private sectors, and offer Japanese language skills and training for Indonesians. This includes revising teaching materials in Indonesian schools that are considered to have great potential to send workers to Japan.

With a population of more than 270 million people, Indonesia is the fourth most populous country in the world and has long sought to send workers to countries such as the Middle East, Hong Kong, and South Korea to increase foreign currency income and reduce domestic unemployment.

Unemployment among Indonesians aged between 15 and 24 reached 13% in 2022 despite annual economic growth stable around 5%.

Conversely, the working-age population in Japan is declining, threatening a labor shortage. The country will need about 6.7 million foreign workers by 2040, about four times more than currently, according to a JICA study.

“With the active role of Indonesian human resources in Japanese society, social problems in both countries can be overcome,” said Kenji Kanasugi, who is the Japanese ambassador.

Takazumi Yamaguchi, managing director of a hotel operator in Fukui Prefecture, Japan, said his company, Grandia Housen, faces a serious labor shortage that he hopes can be overcome by employing Indonesian talents. 

He said such staff tend to be flexible and can perform many tasks in places like traditional ryokan inns.

According to data from the Japanese Ministry of Labor, the country had about 1.82 million foreign workers in October 2022, of which 77,889 were Indonesians – the sixth largest group after workers from Vietnam, China, the Philippines, Brazil, and Nepal. 

However, the number of Indonesian workers increased by 47.5% from the previous year, the sharpest growth among major countries.

Japan has been reviewing its labor programs to attract more foreign talents, including a recent decision to overhaul the controversial “technical intern” system. ASEAN countries, in particular, are a major source of foreign labor for Japan due to geographical proximity and strong bilateral relations.

Japanese Prime Minister Fumio Kishida said in a meeting with Vietnamese President Vo Van Thuong in Tokyo in late November that human resources from the Southeast Asian country are important for Japan's socio-economic development.

However, life in Japan is not always smooth for foreign staff, who often face challenges in adapting to their workplaces, something that policymakers and employers need to consider if they want to attract more workers.

At a forum in Tokyo in late November, Indonesian citizen Dzaradin Falaq highlighted some of the challenges he witnessed both as a former student in Japan and as a recruiter at a company that introduces foreign talents to Japanese businesses.

“There is a tendency for both Japanese and foreign people to leave their companies due to dissatisfaction with their company, workplace, or job,” said Falaq, citing language barriers, possible unclear job roles, and rigid adherence to traditional methods in some companies.

“Many small and medium-sized companies are still reluctant to accept foreign workers… and the smaller the company, the more traditional they think,” he said. “Foreign workers… and workplaces that encourage diversity can produce innovation,” he concluded.