Contribution of the Remittance Economy to the Rural Development: A Case Study on Owners of Warung Tegal in Jakarta

Abstract:

This study aims at: (1) describing Tegal migrants in Jakarta working in the informal sector in Warung Tegal and contributing to economic opportunities for other migrants in Jakarta, (2) describing the results of money transfers or cash flows and goods done by the owners of Warung Tegal to their families in their hometown, (3) explaining what contributions of the remittance economic are for the development of the migrants’ hometown. The results show that Warung Tegal is able to be an alternative to increase the wealth of migrant families. Remittance is also impacted by various factors including the level of family needs in their hometown. This research also indicates that remittance has a fundamental meaning, namely as a form of social bonding and also as a responsibility to their families in their hometown. The remittance is usually used for consumption and productive activities such as building a house as a symbol of migrant success while running Warung Tegal.