The Role of Social Remittance in Supporting Entrepreneurship of Indonesian Return Migrant Workers

Abstract:

Return migrant workers in Indonesia have great potential to be developed. Migrant workers may provide financial remittance to Indonesia, which can be invested in economic activities when returning to the home country to stimulate economic growth through entrepreneurial activities. The purpose of this study is to explore the potential of entrepreneurship in Indonesian return migrant workers, and how the role of social remittances obtained during migrating abroad to the entrepreneurship of Indonesian return migrant workers after returning to their home regions. The study was conducted using a qualitative approach with applying interviews and focus group discussion (FGD) methods for the Indonesian return migrant workers in Blitar (East Java), Kendal (Central Java), and Karawang (West Java). This research will examine the factors that encourage migrant workers to become entrepreneurs and how these migrant workers utilize their social remittances for entrepreneurship. The results show that the social remittances brought by migrant workers to their hometown have played a role in encouraging the entrepreneurship of Indonesian return migrant workers in the Blitar, Kendal, and Karawang regions. The results of the study can be used as alternative consideration for developing entrepreneurship development policy proposals for Indonesian migrant workers, especially those who have returned to Indonesia. The potential of Indonesian return migrant workers can help to reduce unemployment and improve welfare, and to reduce poverty in the long run.