FINANCIAL LITERACY AND RETIREMENT READINESS FOR OIL AND GAS INDONESIAN EXPATRIATES IN SAUDI ARABIA

• Main Author: Arsyadanie, Robbie
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/77237
• Institution: Institut Teknologi Bandung

Expatriate is described as the people that lives outside their native country. Their work is defined as high-density, more complex, and more demanding than domestic work (Shin, 2007). In Saudi Arabia, the expatriate has been working in the oil and gas industry since the beginning in 1938. However, in December 2015, Saudi Aramco, the only oil and gas company in the Kingdom of Saudi Arabia (KSA), launched In-Kingdom Total Value Add (IKTVA) Program as an initiative to drive additional domestic value creation in KSA. This program successfully boosted Saudization from 35% to 50% only in three years which help the official movement, called the Saudi nationalization scheme, that was started in 1980s. Beside that, KSA in 2016 introduce Vision 2030 as a blueprint to strengthen the KSA economy to be dependent not solely on the natural resource, but also on the people and young generation. Some of the intentions are to localize the oil and gas sector and drive healthier employment opportunities for citizens. With these 2 programs, all expatriates must be ready for early retirement. Especially Indonesian Expatriate as per Ikatan Ahli Teknik Perminyakan Indonesia (IATMI) commissariat KSA database, more than 170 Indonesian expatriates working in the oil industry. The finding reveals that the expatriate's financial literacy, defined as the knowledge, skills and beliefs that influence attitudes and behavior to improve the quality of decision making and financial management to achieve prosperity, is quite low at 46%. There is also found that there is weak relation between financial literacy and early retirement readiness.