Page 1 th Edition June (GLWLRQ\031R\11\03ff\0f\03-XQH\03fflflfifl\03 \03 )LQDO\035RXQG\03RI\03)LQDQFLDO\03/LWHUDF\\037UDLQLQJ\03IRU\03,QGRQHVLDQ\03 2YHUVHDV\030LJUDQW\03:RUNHUV\03DQG\037KHLU\03)DPLOLHV\03 The pilot program on financial literacy for Indonesian overseas migrant workers and their families is designed within a research framework with the objective of finding effective ways to improve the financial literacy of migrant worker households so that they can skillfully manage their remittances. The program consists of four stages preparation training delivery monitoring and analysis and recommendation The preparation stage was carried out in late and included collecting migrant workers data training the trainers and conducting workshops with representatives of migrant worker recruitment agencies The training stage was conducted from January to June and consisted of two main activities a baseline survey and five rounds of financial literacy training At the end of this stage the World Bank conducted a workshop on Follow Up of the Financial Literacy Training for Indonesian Overseas Migrant Workers and Their Families on June in Malang Currently the pilot program has just begun activities in the monitoring stage Follow-up Workshop The workshop was attended by implementing partners in Malang District as well as representatives from the Coordinating Ministry for Economic Affairs CMEA and National Board for the Placement and Protection of Indonesian Overseas Migrant Workers BNP TKI At this workshop the World Bank presented the pilot s progress and emphasized the importance of continued support from all implementing partners to ensure the pilot s overall success What Was Done in the Training Stage The pilot involves migrant workers and their families who came from Greater Malang and Blitar The financial literacy training was conducted in five rounds with a total of training classes for migrant workers and training classes for migrant workers families during the period January to June The long period needed to complete the training was mainly due to the limited number of migrant workers in the recruitment agencies PPTKIS who were available to take the training and difficulties in assuring participants full attendance during classes 56292 Page 2 th Edition June Page 3 th Edition June What Was Gained from the Financial Literacy Training Based on observations and interviews with participants there are many benefits gained from this training The majority of participants began to be aware of the importance of managing their relatively limited incomes Moreover they also gained information on various financial service alternatives that are on offer Exercises completed by training participants showed that they gained the basic skills of managing finances and basic know how of accessing financial service For the World Bank the rounds of training have provided valuable feedback on how to improve the training materials methodology and supporting tools for financial literacy training that are most suitable for migrant workers and their families The feedback included among others information updates on financial products for migrant workers and the services provided in practice simpler explanations of financial terms and adjustments needed to balance the training content and the time allocated Based on this feedback the World Bank will revise and finalize the training materials in order to make them applicable forwider use What Can Be Done to Expand the Program The workshop concluded by discussing ideas on how to take the financial literacy pilot program to the next level The Manpower and Transmigration Office of Malang District expressed its interest in allocating APBD funds in fiscal year to conduct financial literacy training as a follow up of the pilot The Malang District Office hopes that the training program can be carried out continuously in the long term During the discussion participants raised ideas on expanding the financial literacy program such as forming a task force consisting of the local Manpower and Transmigration Office PPTKIS and NGOs to specifically replicate the training at the district level integrating the pilot s financial literacy educational material into the training curriculum of the migrant worker s training centers BLK LN or the final pre departure training PAP program and conducting financial literacy training as a part of the debriefing program in the destination countries In terms of scope participants suggested that the financial literacy materials can be combined with entrepreneurial training materials As for program replication participants stressed the importance of establishing a a system to consistently maintain the quality of the training Page 4 th Edition June To enhance the possibility of expanding the financial literacy program further participants suggested similar workshop should also be organized at the national level inviting representatives from financial institutions as well 1H[W\036WDJH\1d\030RQLWRULQJ\03 As part of a research framework the monitoring stage aims to assess the impact of financial literacy training delivered to migrant workers and or their families Monitoring results will be a very important basis for the next stage i e analysis and formulation of policy recommendations on the most suitable and effective financial literacy training delivery for migrant worker households How Will the Monitoring Be Conducted Monitoring will be conducted through a telephone survey and house visits to each migrant worker household who Visit from Representatives of the CMEA and BNP TKI In the final round of financial literacy training for migrant workers on June th Bapak Erlangga Mantik Deputy for Macroeconomic and Financial Coordination CMEA Bapak Bobby H Rafinus Assistant Deputy for Macro Policy Analysis CMEA and Ibu Lisna Y Poeloengan Acting Deputy for Protection BNP TKI made a visit to directly observe how the training session is delivered as well as to obtain a hands on overview of the migrant workers financial problems and challenges During the visit they directly interacted and actively involved in discussions with training participants The visit was concluded by sharing the government s views on the importance of good financial management to all participants Page 5 th Edition June participated in the financial literacy pilot program A questionnaire will be used in each survey to track changes in the migrant worker s family s financial behavior both in managing household finance as well as in accessing financial services The survey will be conducted once in every months for a one year period starting from July The World Bank in collaboration with REDI will carry out the survey What Kind of Support Is Needed As a follow up to the training delivery the World Bank needs continuous support from all of the implementing partners The survey will be targeted at the participating migrant worker households whose family member has left for the host country and therefore assumed to have started sending remittances to be managed by the family at home During the monitoring process the World Bank will need continued support from all PPTKIS partners in the form of periodic updating on the departure and arrival status of migrant workers who participated in the pilot program In addition to ensuring that the survey runs smoothly the World Bank hopes that the partners will provide a letter of introduction needed for survey purposes 7KH\037UDLQLQJ\037HDP\03 \03 The delivery and coordination of financial literacy training was conducted by the World Bank in collaboration with a REDI team led by Pak Indra N Fauzi As the front runner of the training delivery the REDI team s role is crucial Followings are brief comments from the team regarding their experience and impression in delivering the training Fredi Prasetyo W T LUAR BIASA SEHAT SELALU SUKSES extraordinary always happy success This fits perfectly well to briefly describe the experience impression and outlook in delivering the financial literacy training to participants I ve gained so much knowledge experience and memorable moments I sincerely hope the training can provide meaningful benefits in the future Erlyn Yuli Astuti It has been an exceptional learning process whereby the trainers capability and willpower are constantly pressured to be improved Participants are an integral part of the training and their active participation is a prerequisite so that a comfortable and conducive atmosphere can be maintained during the training Saryudhi Always full of enthusiasm when I prepare the teaching materials always enjoyable when I present the materials nervous when I facilitate in filling out the exercise in My Financial Book relieved when the training is completed and hoping that the materials can be understood and useful Nur Hasna I learned a lot from migrant workers about their struggle and the diversity of their family background Cooperation among and togetherness between the trainers to cross evaluate is very useful so that the team complements one another and improve their skill In addition the openness and friendliness of all trainers to participants also makes the participants feel comfortable thus the knowledge acquisition is easier Almira Pradiptha The training is highly recommended for those who intend to migrate overseas so they can manage their remittances better It is hoped that in the short term they will be able to improve the family s economic welfare and in the long term they will participate in the improvement of the state s economic development Pebruawan Ariyanto The main obstacles in coordinating the training delivery are the uncertainty of participants to attend the training session and rejection from migrant workers families to come to the training venue Solid cooperation with PPTKIS is critical in order for the training delivery to run smoothly Page 6 th Edition June $FNQRZOHGJHPHQWV\03 \03 The World Bank is grateful to all of the stakeholders involved in this pilot Activities within the financial literacy pilot program would not have been possible without the full support and collaboration from ƒ PT Antar Tenaga Mandiri ƒ PT Asri Cipta Tenaga Karya ƒ PT Assanatama Karya Mandiri ƒ PT Berkat Sukses Makmur Sejahtera ƒ PT Bina Mandiri Muliaraharja ƒ PT Fortunatama Insani ƒ PT Iin Era Sejahtera ƒ PT Indonaker Mandiri ƒ PT Mitra Harta Insani ƒ PT Sriti Rukma Lestari ƒ PT Surabaya Yudha Citra Perdana ƒ PT Tritama Bina Karya ƒ Regional Economic Development Institute REDI ƒ Manpower and Transmigration Office Malang District ƒ National Board for the Placement and Protection of Indonesian Overseas Migrant Workers BNP TKI ƒ Coordinating Ministry for Economic Affairs CMEA Access to Finance Team Finance and Private Sector Development Unit The World Bank