BUSINESS MODEL OF FINANCIAL TECHNOLOGY FOR INDONESIAN MIGRANT WORKER

• Main Author: Irham Raenaldi, Muhammad
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/42942
• Institution: Institut Teknologi Bandung

Indonesian Migrant Worker (IMW) often known as the heroes of foreign exchange because their contribution the Indonesia’s economy. The contribution rate of Indonesia GDP is around 1% each year. However, the rate is seeming to decrease because Indonesia apply moratorium to several countries in Middle-eastern. Therefore, the number of IMW that send abroad is decreasing as well. In 2015, BNP2TKI show that IMW sent abroad is 512.168 and compared to 2017 it decreased to half. Indonesia migrant worker have a little knowledge and lack of skills. BNP2TKI stated that most of the IMW graduated from elementary school and junior high school with 38% and 33% respectively. There are several reasons of IMW wants to be a migrant worker. Generally, because they can earn higher compared in Indonesia. Malaysia has become popular destination of migrant worker because have a similar language and create a better communication. However, World Bank reported that IMW are expose with bad experiences during work. The salary offered is lower than previous agreement and salary is often late to receive. Remittance in migrant worker play a strategic role to enhance migrant worker family and a country in size of economy. In the country size, the remittance perceived as a stable capital for developing countries such as Indonesia. The remittance is resilient against global and macroeconomic volatility. In personal size, the remittance can be use by migrant worker family in home to purchase goods and service. However, the usage of remittance on migrant worker family tend to use on less productive asset therefore, the family may shift to more consumptive on behavior. The trade-offs of increased income by using remittance followed by increased expenditure. Financial technology is developed to support user to be able access financial services in more convenience way. The objective of this research is to develop business model for financial technology for Indonesia migrant worker. The proposed financial technology provided with three main features which is financial and wealth management, training, and money transfer. The financial technology able to implement Robo-advisor as personalized advisory system in the application. Robo-advisor provide three main activities which is configuration, matching, and maintenance. The financial technology also able to provide training course of financial management and business practice. The money transfer process is required valid ID for KYC before able to use the features.