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Written Answer by Mrs Josephine Teo Minister for Manpower to PQ on Indonesia zero placement fee policy

Foreign manpower

NOTICE PAPER NO. 191 FOR THE SITTING ON 2 FEBRUARY 2021
QUESTION NO. 502 FOR WRITTEN ANSWER

MP: Mr Melvin Yong Yik Chye

To ask the Minister for Manpower arising from Indonesia’s new “zero placement policy” (a) what measures can the Ministry put in place to support employers who need to hire new foreign domestic workers from Indonesia; and (b) whether the Ministry has any plans to help alleviate the financial burden for such employers who are unable to afford the placement fee. 

Answer:

  1. The Indonesian authorities have informed employment agencies (EAs) in Singapore that it will be introducing a “zero placement fee policy”. This policy requires employers to bear placement fees and other costs incurred by new Indonesian foreign domestic workers (FDWs) when seeking employment overseas, including the costs of air tickets, work visas, passport replacement, medical examinations, transportation and accommodation. While this policy was supposed to have taken effect on 15 January 2021, the Indonesian authorities have extended the transition period by six months, until 15 July 2021. EAs have indicated that the service fee charged to employers for Indonesian FDWs could increase as a result of this policy.
  2. To avoid these higher fees, employers can consider FDWs other than those from Indonesia. Regardless of the country of origin, employers should ensure they have full information of the cost implications before making their hiring decisions. EAs are required by Singapore law to provide employers with a clear breakdown of the fees charged to them and their FDWs. Depending on employers’ preferences and cost considerations, EAs will advise them on the options that best meet their requirements. EAs will likely make adjustments to bring in FDWs from countries with growing demand by employers.
  3. Alternatively, employers can consider hiring part-time help from domestic services providers under the Household Services Scheme. Those with caregiving needs for the elderly or young children may also approach agencies like the Agency for Integrated Care (AIC) or the Early Childhood Development Agency (ECDA) for assistance on accessing subsidised services.