The Malaysian Association of Foreign Maid Agencies (Papa) has announced the new cost structure of hiring an Indonesian domestic worker at RM6,700, with immediate effect.

Apart from the cost structure, there would be an additional RM1,800 as a loan to the domestic worker for her share of foreign placement fee in Indonesia.

Papa president Jeffrey Foo said the actual cost incurred by the employer was only RM6,700.

“The cost is the product of lengthy negotiations with the association’s Indonesian counterpart, Asosiasi Perusahaan Jasa Tenaga Kerja Indonesia (Apjati), in the past few months,” he told a news conference in Kuala Lumpur today.

Foo said under the previous memorandum of understanding between Indonesia and Malaysia, the one-off agency fee for the hiring of an Indonesian domestic maid was fixed at RM4,511, of which RM2,711 has to be paid by the employer and the remaining RM1,800 by the maid.

He said the new cost structure of RM6,700 was reasonable as it matched market supply and demand.

He foresaw that the new cost structure could attract more than 10,000 Indonesian domestic workers.

He also believed that the new structure would be accepted by the Malaysian and Indonesian governments.

“We acknowledge and appreciate the good faith of our Human Resources Ministry, in allowing Papa to propose and observe a fair price structure,” said Foo, adding that the recruitment, via Papa members, would be done according to proper procedures and be regulated.

“We will engage our Indonesian counterparts (Apjati) in identifying suitable candidates to be recruited and trained. We anticipate good response from them in the coming months,” he said.

Meanwhile, Foo said a foreign representative office would be set up in Malaysia by Apjati next month, to monitor their workers welfare and safety.

- Bernama