Politeknik Negeri Jakarta Promotes Financial Literacy for Indonesian Migrant Workers In Taiwan

Politeknik Negeri Jakarta (PNJ) has launched an International Community Service Collaboration (PMKI) aimed at Indonesian migrant workers (PMI) in Taiwan. Through this program, PNJ educators provided financial management education to PMI, focusing on personal finance and financial literacy. Iwan Susanto, the program coordinator, along with two accounting lecturers from PNJ, Heti Suryani Fitri and Lini Ingriyani, and Iwan Sonjaya, an IT lecturer, discussed various aspects of financial planning to boost financial literacy among PMI in Taiwan.

Iwan explained that the initiative aims to empower and support PMI in Taiwan by teaching them how to manage their earnings effectively. "This program is part of our effort to help PMI manage their finances well and seize opportunities to accumulate capital for investment, so they can continue improving their welfare upon returning to Indonesia," Iwan stated in a press release received by SWA.co.id in Taouyuan City, Taiwan, on Wednesday (July 18, 2024).

In this community service project, PNJ partnered with PCINU (The Special Branch Executive Board of Nahdlatul Ulama) Taiwan. PCINU Taiwan Chairman, Didik Purwanto, emphasized that PMI, many of whom are also members of Nahdlatul Ulama in Taiwan, should not only focus on earning money but also on managing it wisely. He stressed the importance of guiding PMI on financial literacy, including saving strategies and investment allocation.

During her presentation, Heti highlighted the importance of financial planning as the foundation for effective money management. She taught participants how to maintain a cash flow surplus, understand the value of various types of insurance, and plan for education and retirement funds, among other strategies for achieving financial stability.

One key point Heti emphasized was the need to prioritize savings and emergency funds. "After setting aside savings, especially an emergency fund, which should amount to three to twelve times the monthly expenses, you can then plan for your monthly spending," explained Heti, who holds a Certified Personal Money Manager (CPMM) license.

Before focusing on savings and investment, Heti noted that paying off debt should always come first, warning that debt should not exceed 30% of one's income. Any higher amount indicates problematic financial management.

The second speaker, Lini Ingriyani, covered debt management, stressing that poor debt management can lead to bankruptcy. "Before taking on debt, it's crucial to understand the purpose of the loan and the associated costs," said Lini, a Certified Securities Analyst (CSA) and Certified Technical Analyst (CTA).

Lini also advised that one must ensure a guaranteed source of payment for both the principal and interest before borrowing, to avoid financial deficits. The session concluded with an introduction to investments, encouraging participants to start investing according to their financial goals to improve their overall welfare in Taiwan.

PCINU Taiwan Chairman, Didik, expressed hope that the positive impact of this financial literacy initiative would extend beyond this session and lead to more collaborative efforts. "We hope that this collaboration with PCINU continues so that PMI can receive ongoing support through educational videos and other services," he said.