Hello everyone, prospective and current Formal Indonesian Migrant Workers (PMI)! Many of you are probably wondering, "Why do I have to pay my own placement fees, even though I'm a Formal PMI?" This is a perfectly reasonable question, especially since we often hear that Formal PMI should be exempt from fees, or 'zero rupiah'. So, to clear up any confusion, let's discuss why this can happen and what the rules are!

Understanding PMI Placement Fee Structure

The government, through the Ministry of Manpower (Kemenaker) and the Indonesian Migrant Worker Protection Agency (BP2MI), has established a "Cost Structure" or PMI Placement Cost Structure. This is a detailed list of potential costs from when you first register until you depart for your destination country. The purpose? To ensure everything is transparent and there are no obscure, 'ghost' fees.

Within this Cost Structure, there are several cost components that are already regulated as to who bears them: whether it's the overseas employer (employer), the Indonesian Migrant Worker Placement Company (P3MI), or the PMI themselves.

So, Why Can Formal PMIs Still Fund Themselves?

Well, herein lies the explanation. Although ideally the placement fees for Formal PMI are borne by the employer, there are certain cost components that can legally be charged to the PMI. This is all legitimate and legal, provided it does not exceed the "upper limit" of placement fees set by the government.

Think of it this way: the government has set a 'ceiling' or maximum limit on the fees that can be charged. As long as the total cost you bear doesn't exceed this ceiling, then it's considered legitimate.

Some reasons why there are costs borne by the PMI include:

1. Inherent Personal Cost Components: There are personal costs that are the responsibility of the individual. The most common examples are:

   • Passport Issuance: This is your personal document that you must have.

   • Medical Check-up: To ensure you are healthy and fit to work abroad. This is for your own good, too!

   • Training and Competency Certification: If the job you're applying for requires specific skills and there's a cost involved, this can be your responsibility. The aim is to equip you adequately so you're not taken by surprise when working there.

   • Insurance: Some types of insurance may be a mandatory cost borne by the PMI for self-protection.

2. Agreement with Employer or P3MI: Although there are general rules, in some cases, there might be negotiations or agreements between the PMI, P3MI, and the overseas employer. As long as this agreement does not violate the upper limit rules and is agreed upon by both parties, it can occur.

3. Labour Market Dynamics: In some sectors or destination countries, there might be labour market dynamics that result in a small portion of the costs being borne by the PMI. This is often offset by the potential for higher salaries there.

The Upper Limit: Your Protector!

It's crucial to remember that the "upper limit" on placement fees is your protector! Therefore, P3MI or any party must not demand fees outside of what has been determined or exceeding the maximum limit set by the government.

If anyone demands unreasonable fees or exceeds the upper limit, you have the right to refuse and report it! You can complain to BP2MI or your local Manpower Office. Don't be afraid, this is your right as a prospective PMI!

So, What Should You Do?

1. Understand the Cost Breakdown: When registering or dealing with a P3MI, request a clear and transparent breakdown of costs. Never hesitate to ask questions!

2. Check P3MI Legality: Ensure the P3MI you use is a registered and official company with Kemenaker/BP2MI.

3. Compare and Verify: If possible, compare offers from several P3MIs (official ones, of course) and verify the cost information you receive.

4. Report Any Irregularities: If you feel something is amiss or you are asked for unreasonable fees, report it immediately to the authorities.

Even if you have to incur initial costs, remember that this is an investment in your future. The most important thing is that the entire process is legal, transparent, and your rights as a PMI are protected. So, stay positive and be careful as you move forward!

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