Ismira Lutfia – Activists have welcomed a new policy that may allow the direct hiring of Indonesian migrant workers by prospective Malaysian employers, but they insist the mechanism must be tightly supervised by the government.

By cutting out recruitment and placement agencies, Malaysian authorities have effectively cut costs for local employers. The move may also relieve Indonesian workers, and their families, from the considerable fees often charged by the agencies. According to The Straits Times, Malaysian agencies can charge up to 8,000 ringgits ($2,689) in fees.

"This is a win-win solution for both workers and employers," said Muhammad Iqbal, head of the Indonesian Migrant Workers Union (SBMI).

Iqbal said that any work agreement based on this new policy should be endorsed by the Indonesian Embassy in Kuala Lumpur to ensure that the worker's arrival and working terms were properly recorded and monitored.

Jamal, from the Indonesian Migrant Workers Union (SBMI), stated that placements through agents did not guarantee that workers were protected. "The new policy is fine as long as the Indonesian Embassy verifies the employer's credentials and checks the workplace," he said.

Malaysian employers have largely agreed to the move, stating that it will cut hiring costs in half and give them the flexibility to chose their own maids, according to reports in The Straits Times.

But the Indonesian Workers Association (ATKI) warned that the new regulations could leave migrant workers vulnerable for human trafficking. "This is quite dilemmatic and the government must be ready to implement stricter supervision," said Retno Dewi, chairwoman of the ATKI.

The policy should be extended to recruitment agencies in Indonesia as well, Retno said.

But the policy may have little impact on the hiring of migrant workers. The move to cut Malaysian placement agents was not part of a memorandum of understanding signed between Indonesia and Malaysia, said Suhartono, spokesman for the Manpower and Transmigration Ministry.

According to Suhartono, the decision was one-sided. Job orders for Indonesian maids would still have to come from Malaysian agents who send requests to Indonesian placement agencies. "Indonesian agents will not be able to send workers without job orders from Malaysian agents." he said.