KnE Social Sciences

Published date: Mar 23 2020

Journal Title: KnE Social Sciences

Issue title: International Conference on Economics, Business and Economic Education 2019

Pages: 566–573

DOI: 10.18502/kss.v4i6.6627

Grisvia Agustingrisvia.agustin.fe@um.ac.idEconomics Faculty, Universitas Negeri Malang

Hari WahyonoEconomics Faculty, Universitas Negeri Malang

Yogi Dwi SatrioEconomics Faculty, Universitas Negeri Malang

Syahrul MunirEconomics Faculty, Universitas Negeri Malang

Dian Rah- mawatiEconomics Faculty, Universitas Negeri Malang

Januar KustiandiEconomics Faculty, Universitas Negeri Malang

Worker migration is an old phenomenon. Many workers from Indonesia had migrated since 1970s, legally and illegally. According data from OECD (September, 2015) there are an estimated 215 million international migrants working in a globalised economy, the majority of whom are remitting money to their home country. Remittances are vital component of household income for families, reducing poverty and creating opportunities for investment in education and enterprise. As we know, high-income countries are the main sources of remittances. Government wants to upgrade the migrant workers financial knowledge to reduce revel tendency. But the one who arranges the remittance is the one in family member, not the migrant worker. This study tend to analyze ability to manage remittance and financial of migrant worker’s family using descriptive qualitative method based on worker migration and basic financial management theory. The results are remittances from abroad generally received 3-4 monthly. Remittances in dollars or others foreign exchange rate (for example developed countries) has huge value in rupiah because of rupiah’s exchange rate depreciation tendency. But in East Java, Indonesia, access to increase financial literacy for migrant workers family is very lack. Migrant worker’s family may have proper education and internet access but don’t improve their financial literacy.

Keywords: remittance, family’s financial management, Indonesia migrant worker

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