The Workers Rights 
Indonesia is set to sign an updated memorandum of understanding with Malaysia on the placement and protection of domestic employment, while the proposed update aims to encompass a broader range of placement relationships, including both placement and protection of Indonesian migrant workers in October 2026; the schedule was announced by Indonesian Minister for the Protection of Indonesian Migrant Workers Mukhtarudin after a meeting between Indonesian Vice President Gibran Rakabuming Raka and Malaysian Deputy Prime Minister Ahmad Zahid Hamidi in Jakarta on September 17.
The Indonesians asked the Malaysians for support in accelerating the remaining stages of the agreement. The proposed update is to provide a broader framework to cover migrant workers in both formal and informal employment. The discussions also reflect Indonesia’s efforts to improve governance in recruitment and expand opportunities for workers with higher qualifications and skills in the Malaysian labour market.
Worker Protection Remains At The Heart Of Bilateral Discussions
The proposed agreement places Indonesian migrant worker protection at its core. During the meeting in Jakarta, Vice President Gibran stressed the importance of strong safeguards for Indonesian workers in Malaysia, and the Indonesian government is looking for arrangements to improve the protection of workers throughout the employment process.
Both governments have existing mechanisms for worker protection and capacity building, and Indonesian officials said these arrangements have helped minimise possible problems affecting migrant workers. It is expected the new framework will build on existing cooperation while covering recruitment and placement arrangements over a broader range of employment sectors.
Indonesia Seeks More Formal Sector Jobs
One of the key elements of the proposed MoU is Indonesia’s desire to increase the quotas for formal sector placement in Malaysia. Jakarta is particularly keen to open up more medium- and high-skilled jobs. It is part of a wider policy shift to higher-quality overseas jobs for Indonesian workers.
Mukhtarudin has said that opportunities in the formal sector continue to be a key area for growth, with current placements still heavily concentrated in informal employment. The proposal could therefore create more opportunities for Indonesian workers with vocational, technical and professional credentials to enter regulated jobs in Malaysia.
Malaysia Welcomes Faster MoU Finalisation
Malaysia’s Deputy Prime Minister Ahmad Zahid Hamidi welcomed Indonesia’s request for the renewed pact to be completed sooner. Indonesia’s migrant-worker ministry stated that the Malaysian side has indicated it would coordinate internally to expedite the process.
The response provides a diplomatic framework for the technical discussions in September and the planned high-level meeting in October. The two governments are aiming for a timetable that could get the revised framework from technical talks to ministerial sign-off in a relatively short time.
The bilateral engagement also reflects the wider relationship between Indonesia and Malaysia, where labour mobility is a key area of cooperation. Malaysia is an important destination for migrant workers from Indonesia, and predictable recruitment and protection arrangements are important for both governments.
Current Agreements Lay Groundwork For New Framework
A separate 2022 memorandum governs the employment and protection of Indonesian domestic migrant workers in Malaysia. That agreement outlined a specific framework for recruitment, placement and protection in domestic employment, whereas the proposed update seeks to cover the wider placement relationship covering the formal and informal sectors.
The difference between the current agreements and the proposed updated framework is important because the new negotiations are not starting from an entirely new institutional base. Instead, Indonesia and Malaysia are looking to beef up and widen agreements that now cover large swathes of cross-border labour mobility.
Indonesian Workers Are A Major Source Of Labour For Malaysia
Proximity, existing economic ties and demand in several industries mean Malaysia continues to be a major overseas job market for Indonesian workers. Indonesian authorities registered 22,915 placement services to Malaysia between January and April 2026, the ministry for the protection of migrant workers said.
This movement is so huge that bilateral labour governance is important for both countries. The revised MoU is expected to address recruitment and placement and worker protection. More effective governance at the recruitment stage can facilitate the provision of accurate employment information to potential workers and ensure that Malaysia’s entry occurs through recognised channels, thereby reducing the risks of irregular recruitment.
Indonesia has been increasing its preventive efforts against non-procedural departures and trafficking-related cases. The policy of the country’s migrant-worker ministry includes protection from the earliest stage of recruitment, including cooperation with law-enforcement agencies and improved complaint handling, the ministry said.
More Access For Skilled Workers To Malaysian Jobs
The proposed expansion of formal-sector quotas is especially relevant as it aligns with Indonesia’s efforts to transition towards medium- and high-skilled overseas employment. The government is increasingly linking training and vocational preparation to international labour market opportunities to improve the quality and value of migrant-worker placements.
The policy direction could help Indonesian workers in sectors where Malaysia needs technical and specialised skills. Greater access to the formal sector could also reinforce the link between Indonesian vocational education and recognised employment opportunities abroad.
October Talks Could Shape Future Of Labour Cooperation
The next major milestone in the process will be the high-level meeting scheduled for October. Both nations’ ministers are expected to review the final framework before the proposed signing, with technical talks scheduled for completion in September.
The outcome will depend on how the remaining technical work and bilateral coordination are carried out. The key areas are protection arrangements, recruitment and placement procedures, quotas and opportunities for medium- and high-skilled Indonesian workers in the formal sector.
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